Economic Stimulus Measures - UAE

On 12 March 2020 under the His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, Crown Prince of Dubai and Chairman of The Executive Council of Dubai His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched 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.

The stimulus package developed by Dubai Government includes initiatives focused on the commercial sector, retail, external trade, tourism, and the energy sector.

For the commercial and business sector

• Freeze on the 2.5% market fees levied on all facilities operating in Dubai.
• Extends a refund of 20% on the custom fees imposed on imported products sold locally in Dubai markets.
• Cancellation of the AED 50,000 bank guarantee or cash required to undertake customs clearance activity.
• Fees imposed on submitting customs documents of companies will be reduced by 90%.
• Cancelation of the 25% down payment required for requesting installment-based payment of government fees for obtaining and renewing licenses.

The tourism sector

• Reduction of municipality fees imposed on sales at hotels from 7% to 3.5%.
• Exempts companies from fees charged for postponement and cancellation of tourism and sports events scheduled for the year 2020.
• Freezes fees for the rating of hotels.
• Freezes the fees charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events.

Energy Sector

• 10% reduction in water and electricity bills including those charged in the residential, commercial and industrial sector, for a period of three months.
• Reduces deposit paid for water and electricity connections by 50%.

Hamdan bin Mohammed launches AED1.5 bn economic stimulus package for next three months

Abu Dhabi Executive Council launches economic stimulus package, fast-tracks Ghadan 21 initiatives -

• The measures announced by the Abu Dhabi Executive Council include an allocation of AED 5 billion for water and electricity subsidies for citizens and the commercial and industrial sectors, intended to reduce the cost of living and support businesses, as well as subsidising electricity connection fees for startups until the end of the year.
• For SMEs, an additional AED 3 billion has been allocated to the SME Credit Guarantee Scheme managed by Abu Dhabi Investment Office, ADIO, to stimulate the ability of SMEs to navigate the current market environment. As for the financial markets, the Executive Council has allocated AED 1 billion to establish a market maker fund, to enhance liquidity and sustain balance between supply and demand for stocks.
• Exemptions of all commercial and industrial activities from Tawtheeq fees, as well as exempting individual and commercial real estate registration fees for this year, suspension of bid bonds, and exempting startups of performance guarantees for projects up to AED 50 million.
• No annual vehicle registration fees for commercial vehicles and no traffic tariffs at toll gates in Abu Dhabi for all vehicles.
• Up to 20% rebate will be offered on rental value for the restaurant, tourism and entertainment sectors, and tourism and municipality fees for the tourism and entertainment sectors will be suspended for this year.
• Settling all approved government payables and invoices within 15 working days, waiving all current commercial and industrial penalties, and reducing industrial land leasing fees by 25 percent for new contracts.

Abu Dhabi Executive Council launches economic stimulus package, fast-tracks Ghadan 21 initiatives

Stimulus Packages introduced by Government of Sharjah to mitigate the severity of economic and social impacts related effects because of COVID 19 and the initiatives are as follows:

• Three-month exemption from fees for economic establishments renewing their licenses from 1 January 2020 to 31 December 2020.
• Traffic violations discount by 50 per cent and cancellation of black points committed before 31 March 2020 for a period of 3 months as of 1 April 2020.
• Free-of-charge issuance of certificates (damage or loss) by the Sharjah Police Headquarters for a period of 3 months, as of 1 April 2020.
• Exempting tenants of the buildings (1 and 2) of the Sharjah Chamber of Commerce and Industry of rental for a period of 3 months as of 1 April 2020.
• Exempting tenants of Expo Centre Sharjah’s building from rental for a period of 3 months, as of 1 April 2020.
• A 30 per cent discount to members of the Sharjah Chamber of Commerce and Industry to participate in Expo Sharjah exhibitions for the year 2020/2021.
• Exempting the participants in the Sharjah Centre for Export Development’s permanent national industries exhibition from rental fees for a period of 3 months, as of 1 April 2020.
• 50-per cent discount for shops, commercial centers and central markets participating in the marketing campaigns organised by the Sharjah Chamber of Commerce and Industry for the year 2020.
• Exempting participating stores from the Central and Eastern Regions (Al Dhaid - Kalba - Khorfakkan - Dibba) from participation fees in the marketing campaigns organised by the Sharjah Chamber of Commerce and Industry for the year 2020.
• Exempting employees of small and medium enterprises (SMEs) in 101 Trade Centre from the rental fees until the end of 2020.
• Fifty per cent discount on Roads and Transport Authority violations committed before 31 March 2020 for a period of 3 months, as of 1 April 2020.
• Twenty Five per cent discount on rental fees for taxi vehicle numbers for a period of 3 months, as of 1 April 2020.
• Exempting taxis and operator of the public transport network for a period of three months, as of 1 April 2020 from the following:
• Quality control fees for taxi services and the transportation network operator.
• Operating fees at Sharjah International Airport.
• Bus station rental fees for the public transport network operator and concession fees.
• Trucks and trailers from transport companies to and from Sharjah ports and the containers customs from traffic gates tariff.
• Revoking the municipality’s approval to renew the licenses of contractors and consultants whose licenses have expired for a period of three months as of 1 April 2020.
• Postponement of the renewal of the occupational health card for facilities subject to the supervision of the municipality.
• Providing sanitation services for houses free of charge for a period of 3 months as of 1 April 2020.
• Renewal of the annual subscriptions of customers in the parking service for one month for free and compensating the customers who subscribe annually in the parking services for a period of 3 months according to the municipality's procedures.
• Exempting the public from paying parking fees for a period of 3 months as of 1 April 2020.
• Exempting the private sector from fees of renewing their municipal related permits for a period of three months, as of 1 April 2020.
• Exempting hotel establishments from the municipal fees of 5per cent for a period of three months, starting 1 April 2020.
• Suspension of all rental property eviction cases currently underway, along with executive procedures like imprisonment, blocking of bank accounts, seizure of vehicles, stocks and assets for a period of two months.
• Deferring consideration of all current and new cases before the rental committees for a month.
• The release of approximately 100 prisoners imprisoned on rental issues and giving them 3 months to settle their overdue amounts.
• Exempting all commercial and wood vessels from dock dues and loading fees in Sharjah Creek, Al Hamriyah and Khor Fakkan Free Zones and creeks.
• Reducing the fees due on port operations by 20 per cent on handling, shipping, unloading and related fees, and marine fees.
• Exempting all bulk goods from storage fees for a period of ninety days.
• Reducing the tariff for truck parking at Sharjah Ports by 50 per cent within the designated areas.
• Exempting all shipping and customs clearance companies from the bank guarantees required to conduct their activities.
• Exempting all commercial companies from inspection fees.
• Exempting companies operating in the free zones from fines for delayed renewal of licenses.
• Exemption from visa fines in free zones.
• Fifty per cent discount on corporate assignation of shares fees.
• Exempting all new licenses from fees according to their commercial activities.
• Exempting hotel establishments from the fees of the Sharjah Commerce and Tourism Development Authority, which amounts to 5per cent for a period of 3 months, as of 1 April 2020.
• Exempting hotel establishments from the accumulated previous violations for the Sharjah Commerce and Tourism Development Authority, during the year 2019 until 31 March 2020.
• Postponing the payment of installments for projects funded by the Sharjah Entrepreneurship Foundation (Ruwad) for a period of 3 months.
• Potential postponing of the installments of projects funded through banks for a period of 3 months in coordination with the banks and according to the case of each project separately.
• Exemptions for the investing sector dealing with the Department of Town Planning and Survey from the payment of contractual dues for a period of 3 months, as of 1 April 2020, according to the following target groups:
• Governmental land investors.
• Investors whose activities relate to change of use from residential to commercial.
• Investors in government parking lots.
• Exemption of Air Arabia from Passenger Facility Charge (PFC) - Dh35 per passenger.
• Exempting companies from aircraft parking fees - Dh100 per day.
• Reducing the rental value of the offices of other airlines by 50per cent.
• Reducing the rental value of warehouses and maintenance hangars by 50per cent.
• Exemption of Initiatives related to the strategic partners of the Sharjah International Airport Authority for a period of 3 months as of 1 April 2020, which includes: - Alpha Flight Services UAE LLC, Sharjah Aviation Services, Gamma Aviation, Dufry Sharjah, SASCO)
• Exemption from collected annual fees and exclusive operating fees.
• Exempting all facilities (warehouse offices) from the annual rents values.
• Initiatives related to the commercial activities of Sharjah International Airport for a period of 3 months as of 1 April 2020 which include: (Restaurants, exchange shops, commercial shops, banks, travel agencies, car rental companies, telecommunications companies and tourist promotion companies)
• Fifty per cent reduction in rental.
• Exemption from the fees of vehicles of dealers at the airport.
• Exempting Air Arabia from: aircraft landing fees, baggage check fees, airport entry permits, and a license renewal fee for fixed passenger airlines (annual fee) in full for a period of 3 months as of 1 April 2020.
• Exempting the Sharjah Aviation Services Company from the fees for entry permits to the airport, and ground handling charges (annual fee) for a period of 3 months as of 1 April 2020.
• Exempting Gamma Aviation from renewal fees for fixed passenger airlines (annual fee), and a ground handling charges (annual fee) in full from a period of 3 months as of 1 April 2020.
Sharjah's 47-point stimulus package suspends eviction judgments, jail rulings on all rental-related cases

Under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, Dubai banks have come together to offer a comprehensive relief package to help their customers ease financial pressures in the current economic environment caused by the coronavirus (COVID-19) outbreak.

The measures announced by the banks seek to support the UAE Government and the UAE Central Bank six-month economic stimulus package and the Dubai Government three-month economic stimulus package to support the business sector in the UAE and Dubai. Leading Dubai banks that have joined the effort to provide relief to their customers include Emirates NBD, Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial Bank of Dubai.

UAE Cabinet approves decisions on reducing water and electricity bills of businesses:

The UAE cabinet chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved a series of decisions that benefit subscribers of the Federal Authority of Water and Electricity, and seeks to support retails, hotels and industrial sectors. The cabinet approved a decision to reduce water and electricity bill of shopping malls, commercial shops, hotels, hotel apartments, and plants, by 20 percent for a period of 3 months starting from April 2020, with a total amount of AED86 million.

These commercial and industrial facilities will also benefit from 6 months payment deferral of water and electricity connection’s installments, and 3 months freeze of service reconnection fines, which varies from AED3000- AED5000, starting from April; in addition to waive the 20 percent electricity connection’s administrative fees for the period of 3 months effective from April.

Dubai free zones offer stimulus package with rents postponed, fines cancelled Dubai has announced an economic stimulus package for all its free zones to help companies deal with the impact of the Covid-19 pandemic on the economy.

The initiative taken by the Dubai Free Zones Council complements the Dhs1.5bn package announced recently by Dubai to reduce business costs and improve the financial liquidity of companies operating in the free zones.

The package includes five key elements:

• Postponement of rent payments by a period of six months;
• Facilitating installments for payments;
• Refunding security deposits and guarantees;
• Cancellation of fines for both companies and individuals; and
• Permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year.

The steps announced are also aimed at helping workers who have been asked to take unpaid leave by facilitating their re-employment in jobs in Dubai.

New firms coming into the DIFC will:

• Be given more time to complete the application and authorisation processes and meet the set-up requirements to commence business;
• Receive a 50% reduction in Application Fees for the remainder of 2020 and flexibility in requirements for permanent premises;
• In the case of Domestic Funds, receive a waiver of Registration Fees for the remainder of 2020.

Existing Authorised Firms will be able to obtain:

• An extension of time for filing a number of returns and reports, including both IRAP and ICAAP returns, the Controllers Report and the Annual Report of the Shari’a Supervisory Board, where applicable;
• Additional time, where reasonable, for submitting Annual Accounts and Financial Statement Auditors Report, with the exception of Reporting Entities;
• Flexibility in meeting Authorised Individual obligations, including extending the amount of time that temporary cover can be in place;
• A waiver of fees for applications relating to Authorised Individuals and flexibility in considering the workload that may be carried by those offering outsourced compliance services;
• Temporary relief from Capital Requirements for those firms which do not hold or control Client Assets or hold Insurance Monies;
• A waiver of our fees for applications for waivers and modifications for the remainder of 2020 and we will waive all automated late return fees for the remainder of 2020; and
• A waiver of the listing fees for new SME issuers in the DIFC for the remainder of 2020.

In addition, where we believe we should proceed with a particular regulatory change, policy consultation periods will be extended, as will time for our firms to meet any new requirements.

Abu Dhabi Global Market, ADGM, has launched a set of financial and support measures to mitigate the adverse impact of the coronavirus, COVID-19, pandemic on registered entities operating in its financial free zone on Al Maryah Island.

• 100 percent waiver on commercial licence renewal fees (with exception of SPVs and foundations licences) until 25 March 2021;
• 100 percent waiver on business activity renewal fees until 25 March 2021;
• 100 percent waiver on data protection renewal fees until 25 March 2021;
• 100 percent waiver on new Temporary Work Permits issuance, renewal and late application fees until 25 March 2021;
• 100 percent waiver on annual Funds fees until 31 December 2020;
• 100 percent refund of annual Funds fees already paid by Financial Services Regulatory Authority, FSRA, regulated entities for 2020;
• 50 percent refund of Supervision fees already paid by FSRA regulated entities for 2020;
• 50 percent waiver on any new FSRA Supervision fees to be collected until 31 December 2020; and
• Deferment of rental payments and service charges for office tenants at ADGM Square on Al Maryah Island for 2020.