Coronavirus: Dubai reveals Dhs1.5bn (approx. USD 408 million) stimulus package

Coronavirus: Dubai reveals Dhs1.5bn (approx. USD 408 million) stimulus package

Dubai has unveiled an incentive package worth Dhs1.5b to support businesses in the Emirate to help counter the impact of the COVID-19 outbreak. The economic stimulus package seeks to enhance liquidity in the market by reducing certain fees. The package amongst others, focuses on the commercial sector, retail, external trade, tourism and energy. The 15 measures are proposed to be introduced with immediate effect and will be valid for the next three months. The impact of these measures on the economic situation will be revisited at the end of three months. The highlights of the package are as below:

For citizens and residents:

• 10% reduction in water and electricity bills for residential, commercial and industrial sector
• 50% reduction in deposit amount for water and electricity connection

For local businesses:

• 25% down payment for instalment-based payment of government fees for obtaining and renewing licences is cancelled. The move seeks will reduce the financial burden on SMEs
• Commercial licences can be renewed without mandatory renewal of lease contracts
• Companies will be exempt from permits for new sales and offers

For tourism sector:

• Reduction of municipality fees imposed on sales at hotels from 7% to 3.5%.
• Exemption from fees charged for postponement and cancellation of tourism and sports events scheduled in 2020.
• Fees for the rating of hotels has been suspended
• Freeze on fees charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events

For commercial and business sector:

• Freeze on the 2.5% market fees levied on all facilities.
• Refund of 20% on custom fees imposed on imported goods sold locally
• Cancellation of the Dhs50,000 bank guarantee or cash required to undertake customs clearance
• Bank guarantee or cash paid by existing customs clearance companies will be refunded
• 90% reduction in fees on submitting customs documents of companies

For external trade:

• Furnishing of banking instrument while submitting customs-related grievances is cancelled
• Traditional wooden commercial vessels registered in the country will be exempted from mooring service fees for arrival and departure, as well as direct and indirect loading fees at Dubai Harbour and Hamriyah Port

Source of information: public (collated from local newspapers and websites)