Dubai Computer Group plea for rent cuts, holidays gets positive response

Dubai Computer Group (DCG), a trade body set up to represent the interests of the computer business in the emirate, said on Sunday its plea to landlord for rent reduction and rental holiday in the backdrop of Covid-19 outbreak has been getting positive response.

DCG, which has more than 150 member firms, said it issued letters to landlords with the knowledge of the Dubai Chamber of Commerce & Industry seeking their support on rental reduction, a rent holiday and even deferrals. There has been positive response from landlords and some of the members have already benefited from the move.

The group, which was formed in 2007 under the patronage of the Dubai Chamber, said in a statement it has set up a Covid-19 Response Team to safeguard the business interests of its members against any detrimental impact caused by the global lockdown.

The Response Team, comprising Dharmendra Sawlani, Ashish Panjabi and Suchit Kumar, will seek to address the concerns and initiate action plans to support the members, it said.

Dharmendra Sawlani, president of DCG, who is also the owner of Smile Computers, said sales channels had changed since restrictions on movement in the UAE came into place. "Many of our members have had to improve their online presence and work more closely with the various e-commerce channels. This has meant adapting their logistics capabilities and finding innovative ways to continue serving corporate clients."

Panjabi, chief operating officer Jacky's Retail and Board member of DCG, said there was a sudden surge in the demand for computers and other ICT products in March as e-learning and work-from-home practices were adopted at short notice.

"Many of our members reported stronger sales during that period as virtually everyone has undergone a major digital transformation over the past few weeks," said Panjabi.

"The pressure on SMEs has been immense because cash flow cycles have slowed down. As DCG, we've been trying to support our members where we can, be it in providing trainings for better managing finances, banking relationships, HR aspects or VAT," said Sawlani,.

He said the group was engaged with major IT distributors to listen to their concerns and highlight areas where both sides can cooperate to ensure business continuity. "We've also written to over 150 landlords to seek some sort of reprieve for our members. At the end of the day, we realise, we are all in this together."

DCG has been closely working with Dubai Chamber to highlight the concern of the industry and seek support.

Panjabi said the support from government bodies has been extraordinary during these trying times. "We've engaged closely with the Dubai Chamber and they have helped us coordinate with other government departments wherever necessary or to find ways to overcome the challenges we faced. It encourages us to know that we can reach out to them any time of day or week."

Suchit Kumar, vice president of DCG, said the group has been closely monitoring and assessing the impact on IT business post the lockdown and closure of borders due to the pandemic. "DCG will remain committed to doing its utmost to support members during this rapidly evolving situation."