Dubai crown business hub amid COVID-19
Even though Dubai has sustained its reputation of a global business hub over the years, the real marvel is that even in the pandemic era, the city has continued to provide a safe and incentivized environment for the businesses to establish.
In view of the unprecedented economic challenges caused by the pandemic, businesses and entities across Dubai have been subjected to a spectrum of incentives and relief packages from both, the government as well as the private organizations; Thereby, still ensuring Dubai remains the crown business destination!
On the account of Dubai’s commitment for the prosperity of businesses, Sheikh Hamdan stated: “We will harness all efforts to ensure Dubai remains a model in enabling people to achieve the highest levels of excellence and success.”
The economic relief packages offered by Dubai banks
Commercial Bank of Dubai, Emirates NBD, Mashreq, Emirates Islamic, Dubai Islamic Bank are some of the banks that have committed to assist individuals and businesses. Their incentives and offers include:
- Individuals who applied for personal loans, auto loans or mortgages can apply for a one-month repayment holiday with no fees.
- Those individuals who own small-scale businesses and have availed merchant loans, equipment loans or business vehicle loans can apply for a repayment holiday of three months subjecting to no interest and fees.
- The minimum monthly balance required for basic business banking reduced to AED 10,000. In addition, for the basic business banking account, the minimum balance charges will be waived for a time frame of three months.
- Decreased bank charges for digital business transactions for all trade finance customers.
- Industry sectors including aviation, healthcare, retail, education etc. are offered the options of refinancing and lower repayments.
The relief packages combined with incentives offered by Dubai banks act as a prime factor for the city being a well-suited business destination in the current times.
Reduction of electricity and water bills for businesses
The UAE Cabinet approved the reduction of water and electricity of businesses to ease financial hardships. The water and electricity bills of shopping malls, hotels, commercial shops were reduced by 20% for the time period of three months. Furthermore, the package includes three months freeze of service reconnection fines, from AED 3,000 to AED 5,000. This decision to reduce the bills, makes Dubai one of the few places in the world to assist businesses in a stupendous manner amidst the pandemic.
The Crown Prince of Dubai, H.H. Sheikh Hamdan, released an AED 1.5 billion economic stimulus package
The crown prince released an AED 1.5 billion economic stimulus package for aiding the business organizations in Dubai. The package includes fifteen initiatives related to tourism, energy, commercial, retail and trade sectors. Specifically based on the business sectors, the policies include:
- A refund of 20% on the custom fees set on imported products which are sold locally in markets of Dubai.
- Fees imposed on submitting customs documents of companies reduced by ninety percent.
- The removal of AED 50,000 bank guarantee needed for customs clearance activity.
- Removal of 25% down payment required for installment based payment of government fees relating to licenses.
Incentives for technology-driven businesses and entities.
Known as the ‘Integrated Free Zone Technology Park’, the Dubai Silicon Oasis (DSO) has featured many offers and stimulus packages to thrive the tech businesses in Dubai.
Dubai Silicon Oasis Authority (DSOA) has provided rent waivers for the retail sector affected by the pandemic. The DSOA has launched workable payment plans for organizations, commercial tenants as well as the residents residing in buildings possessed by the authority. The retail sector at DSO is bound to receive discounts up to 10% upon renewal of rent as well as a 5% discount on the annual rent.
DSOA also took the decision to offer incentives for startups based at Dubai Technology Entrepreneur Campus (Dtec). The measure includes the waivers of overstay fines and overdue payments. In addition, a 5% discount on annual rent is also provided by Dtec. Expats are also allowed to leverage their security visa deposits for assisting them to complete their payments to DSOA.
Relief packages for Small and Medium-Sized Enterprises (SMEs)
The Dubai SME, the body for developing SMEs, has issued AED 20 million for the capital guarantee scheme in collaboration with The Fund and Beehive. The scheme aims to ensure maximum investors in the SME sector benefit and continue flourishing their businesses.
According to the agreement, SMEs based in Dubai that are fifty percent or more owned by an Emirati will be qualified for financing of up to AED 420,000. Businesses will be eligible to attain funding at minimal rates and also a three months payment holiday will be offered at the start of the loan term.
These are crucial in the success of investors of small and medium scale businesses, which are one of the hardest-hit by the pandemic.
Organizations to augment the businesses in Dubai
The businesses in Dubai can witness increased prosperity with the assistance of multidisciplinary organizations like ADAM Global network. Entrepreneurs and investors can set-up and flourish their businesses in Dubai through the help of ADAM Consulting which are committed in providing comprehensive and extensive business solutions.