PHOTO
Abu Dhabi Department of Economic Development (ADDED) said eligible businesses would have to apply online for the refund, which is calculated against fixed rental costs.
The refund scheme is aimed at easing pressure on businesses affected by government measures to contain the spread of the pandemic, official news agency WAM said. It did not however say who would bear the cost of the refund or whether the government would compensate landlords.
Mohammed Ali Al Shorafa, chairman of ADDED, said the move is in line with the directive issued by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council, to support private sector businesses as part of special economic stimulus package.
"The stimulus package launched aims to support companies and facilities affected by the implementation of the precautionary measures taken in the UAE to prevent the spread of the coronavirus," said Al Shorafa.
He said as per the initiative, Abu Dhabi government would ensure the refund of 20 per cent of the total rental value paid by investors who started their lease from September 2019 or renewed their contracts during the period from April 1, 2020 until the end of September 2020. "The move is expected to help add and enhance the confidence in the emirate's business environment. The resolution covers all facilities practicing activities of restaurants, cafeterias, tourism and entertainment."
He said that the resolution is also part of the series of initiatives that ADDED has launched to help support the private sector with a total value of around Dh246 million.
Rashed Abdul Karim Al Blooshi, ADDED under-secretary, said businesses that are covered by the scheme can obtain the refund by visiting the '20 per cent Rental Rebate Initiative Registration' page on the ADDED website.
Al Blooshi said in case the rent allowance is in participatory form, such as a fixed rental allowance and a percentage of the income, the refund is calculated on fixed allowance.
The property owner who claims financial rights towards the tenant or any other financial right owner has to review the competent court's decision to reserve the due allowance, in which the department does not accept any reservation request of any kind except those mandated by a court ruling. - issacjohn@khaleejtimes.com
