UAE vs COVID-19: Over 227 economic, commercial incentives so far

The number of economic and commercial incentives launched by the federal and local governments in all emirates of the UAE exceeded 227 in three months, according to the Federal Competitiveness and Statistics Authority.

The Central Bank of the UAE, the Dubai government and the Abu Dhabi Executive Council were prompt in rolling out relief measures for individuals, small and medium businesses (SMEs), retail and corporate customers.

The Central Bank of the UAE on March 14 rolled out a 100 billion dirhams ($27bn) stimulus to offset impact of the coronavirus on the nation's economy. The package was boosted to 256 billion dirhams on April 5 when the banking regulator halved banks' capital buffer requirements to 7 percent.

On 12 March 2020, Dubai Government 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 included 15 initiatives aimed at reducing the cost of doing business and simplifying business procedures, especially in the commercial, retail, external trade, tourism, and energy sectors.

The Abu Dhabi government launched its own package of financial incentives in coordination with local banks and the emirate’s departments of Finance and Economic Development. The measures aim to provide individuals and SMEs with immediate support and reduce financing costs.

The UAE Cabinet had approved an AED16 billion economic stimulus package as part of the Federal Government's additional measures to support the national economy, ensure businesses continuity, and mitigate the coronavirus impact.

However, the UAE economy is likely to contract by 3.6 percent this year after economic activity slowed because of the coronavirus pandemic, according to the central bank.

"While recovery of economic activity is projected to commence in the second half of the year, recovery of economic sentiment will hinge on deploying policy support measures," the central bank said, referring to its stimulus schemes and those of the local and federal governments.

 

Source: https://www.zawya.com/mena/en/economy/story/UAE_vs_COVID19_Over_227_economic_commercial_incentives_so_far-ZAWYA20200621120732/

 

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