Dubai boosts stimulus to $1.93bln

Unveiling the new stimulus, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, said the package extends the validity of some of the initiatives announced earlier for another six months, starting from January 2021 until June 2021.

Sheikh Hamdan said the government's efforts to reduce the impact of the global crisis, accelerate the pace of recovery of economic sectors and provide necessary means to ensure business continuity, are in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

"Despite the challenges imposed by the pandemic worldwide, our economy is steadily recovering. We have the capabilities and resources that enable us to achieve economic excellence and accelerate the recovery of our various business sectors. We are confident the next phase will bring new opportunities for entrepreneurs and investors," Sheikh Hamdan said.

"The Dubai Government continues to assess the current global economic situation and the various developments amid these exceptional circumstances in an effort to develop practical strategies that will enable us to efficiently mitigate the repercussions of the global pandemic on the economy."

Dubai's latest round of incentives is in addition to a host of fiscal stimulus measures introduced across the nation by the Central Bank of the UAE and the Federal Government and various emirates to help economic sectors navigate the turbulence caused by the pandemic.

The central bank's Dh100 billion Targeted Economic Support Scheme fund has directly impacted more than 321,000 beneficiaries including 310,000 distressed residents, 1,500 companies and 10,000 small and medium enterprises till November 2020. Besides, the UAE Cabinet has approved a Dh16 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.

The decision to launch the new stimulus measures is based on the recommendations of the Dubai Economy Support Committee, chaired by Sheikh Ahmed bin Saeed Al Maktoum, Second Deputy Chairman of The Executive Council, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group, to continue supporting all economic and business sectors in Dubai.

The initiatives included in the stimulus package include exempting commercial establishments and hotels that did not benefit from the reduction in previous packages launched in 2020 from one-time market fees in 2021. Non-beach hotels and their restaurants will be refunded 50 per cent from the hotel sales fee as well as the Tourism Dirham Fee, a Dubai Government Media Office statement said.

In the tourism, entertainment and events sector, the exemption from the fees charged for postponement and cancellation of recreational and sports events and activities, including conferences and exhibitions, has been extended. The new package also extends the freeze on fees charged for ticket sales, issuing permits and other government fees imposed on entertainment and business events, said the statement.

In line with the initiatives, commercial licences can still be renewed without mandatory renewal of lease contracts. The package also includes extending the cancellation of the 25 per cent down payment requirement for accepting installments of licensing fees and licence renewal on a monthly basis. Additionally, nurseries leasing land lots from the Knowledge Fund Establishment will continue to benefit from the 50 per cent reduction in land rent, the Media Office said.

"Yet another remarkable and praise-worthy step from the leadership of Dubai, which continues to be vigilant in assessing global situations and doing its best to mitigate the effects it would have on our local economy. We very fortunate to be in a city where the leadership always puts the goodwill of its people first," Kamal Vachani, group director of Al Maya Group, said in reaction to the new stimulus.

"Surely, this latest stimulus package will be another step in ensuring business and societal continuity, in order to keep Dubai's status as a people-friendly place, a solid trade hub and a pillar of strength in the region."