ECONOMIC STIMULUS PACKAGES IN THE UAE

Various economic support schemes were launched as a part of Economic Stimulus

Package recently announced by the UAE Government to reduce the cost of doing
business in the UAE and boost the  Economy trade sector on the back of the COVID-19
global crisis.

Topics covered:
Economic support of Dubai government
- Dubai economic stimulus package
- Dubai Free Zones economic stimulus package
- Relief package for bank customers
Economic support of Abu Dubai government
- Abu Dhabi economic stimulus package
- Abu Dhabi banks’ initiatives for customers
Economic support of RAK government
- RAK economic stimulus package

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DUBAI ECONOMIC
STIMULUS PACKAGE

On 12 March 2020, the Dubai Government announced an AED 1.5 billion economic
stimulus package for the next three months to support companies and the business
sector in Dubai. The package seeks to enhance liquidity and reduce the impact of the
current global economic situation caused by the onset of the COVID-19 outbreak. 
The package includes 15 focused initiatives aimed at reducing the cost of doing business
and simplifying business procedures, especially in the commercial, retail, external trade,
tourism, and energy sectors. Fifteen initiatives will be introduced soon and shall be valid
for three months, after which time their impact on the UAE economy will be
reviewed. Some of the key initiatives are as follows:
Freeze on the 2.5 percent market fees levied on all facilities operating in Dubai
Refund of 20 percent of the customs fee imposed on imported products sold locally
on Dubai
Cancellation of the AED 50,000 bank guarantee or cash required to undertake
customs clearance activities
Bank guarantee or cash paid by existing customs clearance companies will be
refunded
90 percent reduction on fees imposed on submitting customs documents of
companies
Ensuring its payments to private hospitals are expedited
SECTOR WISE BENEFITS

H E A LTHCARE SEC T O R
Ensuring its payments to private hospitals are expedited

T O U RISM & ENTE R T A I N M E N T S E C T O R

Extending the period for offering refunds of 50 per cent on municipality fees to
hotel establishments and restaurants, from July to December 2020
Halving the ‘Tourism Dirham’ fee until the end of the year
Extending the decision to freeze the collection of fees for hotel rating, ticket
sales, permits and other government services related to entertainment and
business events

IN T E RNATIONAL T R A D E S E C T O R
Reducing fines for some customs cases by 80 per cent and providing the option
to pay in instalments.

C O N STRUCTION S E C T O R
Expediting the payment of financial dues to contractors
Refunding all financial guarantees for construction activities related to
commercial licences

E D U C ATION TRAD E S E C T O R

Reducing fines for some customs cases by 80 per cent and providing the option
to pay in instalments.
 EXTENSION FROM FIRST PACKAGE

The current stimulus package includes extending the validity of some of the initiatives
announced in the first stimulus package for three months until the end of September
2020 to support the private sector in recovering from the crisis. The initiatives include:

Freezing the collection of the 2.5 percent market fee

Cancelling all fines for late payment of government service fees
Cancelling the payment of penalties to renew commercial licences
Renewing commercial licenses without renewing lease contracts
Cancelling the requirement to make a down payment of 25 per cent fees of
government services
Exempting businesses from fees for discounts and special offers.
Extending the exemption of traditional commercial vessels registered locally in the
UAE from paying docking fees at Dubai Port and Hamriya Port
Waiving AED 50,000 bank or cash guarantee to conduct customs clearance activity
Refunding bank and cash guarantees paid by customs clearance companies
•Reducing the fees on customs documents from AED 50 to AED 5 for each transaction
and accelerating the processing of customs complaints.
Reducing fines for some customs cases by 80 per cent and providing the option to
pay in instalments
 DUBAI FREE ZONE
STIMULUS PACKAGE

Dubai Free Zones Council announced an economic stimulus package to complement the
Dubai Government’s efforts to overcome the COVID-19 situation. This initiative
complements another package announced earlier to reduce business costs and enhance
financial liquidity of companies operating in the free zones.

 Key initiatives are:

Postponing rent payments by a period of 6 months

Facilitating installments for payments
Refunding security deposits and guarantees
Cancelling fines for both companies and individuals
Permitting temporary contracts that allow the free movement of labour between
companies operating in the free zones to continue for the rest of the year.

DAFZA's INCENTIVE PACKAGE

Dubai Airport Free Zone Authority (DAFZA) launched a set of economic incentive
packages to support companies based in the free zone, in order to ensure business
continuity across various sectors. The incentive packages aim to help the businesses
mitigate the severity of the economic impact caused by COVID-19.

The initiative includes postponing lease payments for up to three months and facilitating
financial payments into easier monthly installments. It supports retailers also who are
operating from the free zone by exempting them from lease payments for a period of up to
three months. The free zone would refund security deposits on leased spaces and labour
guarantees to companies, as well as exempt new companies from registration and
licensing fees. DAFZA would also cancel fines issued to companies.
RELIEF PACKAGE FOR
BANK CUSTOMERS

Banks in Dubai have come together to offer a comprehensive relief package to ease the
financial pressure on their customers in the current economic environment caused by the
coronavirus (COVID-19) outbreak. Banks that are providing relief to their customers
include Emirates NBD, Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial
Bank of Dubai.

The measures announced by the banks complement the UAE Government and the UAE
Central Bank’s six-month economic stimulus package to support the business sector in
the UAE and the Dubai Government’s three-month economic stimulus package to support
the business sector in Dubai particularly.

The relief benefits include but are not limited to the following:

Customers using credit cards for cash withdrawals will enjoy 50 per cent reduction in
the
Cash advance charges
Credit card holders can avail zero per cent easy payment plans on school fee
transactions with zero processing fee
Credit cardholders can benefit from special pricing on easy payment plans, cash on
call and zero per cent on balance transfers
Card holders can request refunds on foreign currency charges related to travel and
hotel cancellations
Customers who are financially-impacted (due to unpaid leave or any other valid
reason) can request to defer up to 3 monthly installments without fees and profit
charges on existing and new finance facilities
Customers can request for debt consolidation solution
First-time home buyers can get 5 per cent more financing (up to 85 per cent for UAE
Nationals and up to 80 per cent for expatriates)
ABU DHABI ECONOMIC
STIMULUS PACKAGE
 ABU DHABI BANK'S
INITIATIVES FOR INDIVIDUALS

Abu Dhabi banks including First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB) and
Abu Dhabi Commercial Bank (ADCB), in coordination with Abu Dhabi’s Department of
Finance and Department of Economic Development, launched 10 banking-related
initiatives specifically for the benefit of individuals and 7 financial initiatives for SMEs to
protect them from the economic impact of the spread of COVID-19 in the UAE.

For Individuals

Initiative for individuals impacted by COVID-19

Defer installments (principal and interest) on existing loans (personal, auto,mortgages) and credit
cards for up to 3 months for eligible customers until 30 June 2020 with no additional bank charges
Halt foreclosures on mortgages for defaulted customers until 30 Jun 2020
Halt suspension of bank accounts for retrenched customers until 30 Sep 2020
Refund credit card processing fees in full for foreign currency transactions conducted after 1
January 2020, associated with cancellation of travel plans
Make available installment programmes with no service fees for utility bill payments until 30 Jun
2020

Initiatives for all individuals

Defer installments (principal and interest) on new loans (personal, auto, mortgages) and credit
cards for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in
associated bank charges
Reduce interest charges on new loans (personal, auto, mortgages) and credit cards for eligible
customers based on new prevailing rates for eligible customers
Reduce bank charges by 50 per cent on early settlement of existing loans (personal, auto,
mortgages) for eligible customers until 30 Jun 2020
Reduce required down-payment by 5 per cent for first-time home buyers
provide interest-free installment plans for school tuition with waiver of service charges or zero per
cent interest loan until 30 Jun 2020.
 ABU DHABI BANK'S
INITIATIVES FOR INDIVIDUALS

Abu Dhabi banks including First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB) and
Abu Dhabi Commercial Bank (ADCB), in coordination with Abu Dhabi’s Department of
Finance and Department of Economic Development, launched 10 banking-related
initiatives specifically for the benefit of individuals and 7 financial initiatives for SMEs to
protect them from the economic impact of the spread of COVID-19 in the UAE.

For Individuals

Initiative for individuals impacted by COVID-19

Defer installments (principal and interest) on existing loans (personal, auto,mortgages) and credit
cards for up to 3 months for eligible customers until 30 June 2020 with no additional bank charges
Halt foreclosures on mortgages for defaulted customers until 30 Jun 2020
Halt suspension of bank accounts for retrenched customers until 30 Sep 2020
Refund credit card processing fees in full for foreign currency transactions conducted after 1
January 2020, associated with cancellation of travel plans
Make available installment programmes with no service fees for utility bill payments until 30 Jun
2020

Initiatives for all individuals

Defer installments (principal and interest) on new loans (personal, auto, mortgages) and credit
cards for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in
associated bank charges
Reduce interest charges on new loans (personal, auto, mortgages) and credit cards for eligible
customers based on new prevailing rates for eligible customers
Reduce bank charges by 50 per cent on early settlement of existing loans (personal, auto,
mortgages) for eligible customers until 30 Jun 2020
Reduce required down-payment by 5 per cent for first-time home buyers
provide interest-free installment plans for school tuition with waiver of service charges or zero per
cent interest loan until 30 Jun 2020.
17 FINANCIAL INITIATIVES FOR
INDIVIDUAL AND SME'S
RAK ECONOMIC
STIMULUS PACKAGE

Ras Al Khaimah Government launched an integrated stimulus package to support

the emirate’s economy and to ensure business continuity. This package is
introduced in line with the ongoing efforts of the UAE Government to ease the
financial burden on businesses in the emirate in time of the COVID-19 pandemic.
The package forms part of Ras Al Khaimah’s continuous efforts to help the private-
sector companies to ensure continuity of business in all sectors in times of COVID-
19. The package includes:

Planting trees instead of paying fines

As part of the stimulus package, Environment Protection and Development Authority
in Ras Al Khaimah launched an initiative in which environmental violations incurred
before 31 March 2020 could be compensated for by planting trees. This initiative
reflects RAK’s ecological mandate and the desire to establish focus on
environmental protection in the emirate.

50 per cent discount on Hemaya fines

General Resources Authority (GRA) is exempting investors from paying fees on
commercial vehicles until 1 October 2020. Additionally, it is providing 50 per cent
discount on fines to different establishments and service providers for violating
conditions of the Hemaya security system. The discount can be availed before 1
October 2020.

initiatives supporting the tourism sector include:

six-month exemption from tourist licence fees and the ‘tourism dirham’ fee
from March to May 2020
full exemption from tourism licensing fees for the second and third quarters of
2020.
Support for 15,000 companies and 25 per cent discount on new residence visas for
family members
Ras Al Khaimah Economic Zone (RAKEZ) launched a package of customisable
incentives, aimed at supporting more than 15,000 companies operating under its
umbrella. These incentives include:
a three-month exemption from renewing commercial licenses
flexible options for payment of fees, such as installment plans
50 per cent discount on the cost of licences
full exemption from paying for insurance on new residence visa applications
25 per cent discount on new residence visas for family members of people
employed by RAKEZ companies
full exemption from paying fines on delay in renewal of commercial license
full exemption from paying fees related to the postponement of cheque
full exemption from paying fees related to package downgrade
full exemption from paying fees related to changing activity
25 per cent discount on new workers’ housing applications
and complete exemption from entrance fees to centres affiliated with RAKEZ.

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