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UAE emirate Ras Al Khaimah (RAK) has announced incentive packages to help private-sector companies as well as local businesses face the challenges presented by the current coronavirus pandemic and to ensure continuity of business in all sectors.
The integrated stimulus and financial packages cover economic activities, including tourism, government services, environment and SMEs.
Local government entities, free zones and several government departments have agreed on three levels of support: payment exemptions, postponement of fees and the provision of consultancy and assistance.
RAK government agencies has introduced a 25 percent exemption on fees for renewing commercial licenses that were closed as per circulars issued by government agencies, as well as for any sectors affected by the crisis, provided they meet the terms and conditions set by the Department of Economic Development in Ras Al Khaimah.
Dr. Mohamed Abdullatif Khalifa, Secretary General of the Executive Council of RAK, said: "The current circumstances compel us to act in unison and create practical strategies to deal efficiently with this situation and to prepare ourselves to make the most of available opportunities in the post-Covid-19 period."
Extending business license renewal period
The measures taken by the Department of Economic Development in Ras Al Khaimah include extending the license renewal period for 60 days from the date of expiry.
Business establishments will be allowed to operate around the clock for three months and be exempt from marketing permit fees for two months during this year, in case the current situation ends.
Hotels, resorts and all tourism activities will also be exempt from commercial registration during the closing period, in addition to exemption from late fines and fines for engaging in activities arising from commercial licenses since the beginning of the year.
Reducing rental, health card fees
Ras Al Khaimah Municipality Department has exempted tenants in markets (owned by the Municipality) from rental fees for three months, including barbershops, beauty salons and shops in Nakheel market.
It has also exempted advertising companies from rental fees for three months and companies from the monthly installment fees of municipal rental documentation for the commercial sector for one year from the license renewal date.
It has also waived permit fees for outdoor area occupancy for roads and public facilities and reduced fees for issuing health insurance cards.
Planting trees instead of paying fines
The Environment Protection and Development Authority has replaced the payment of fines for environmental violations incurred before March 31 this year with the planting of trees.
The number of trees will be determined by the severity of each violation and the authority will provide the trees to be planted.
In addition, fees incurred by industrial establishments that pay less than 50,000 UAE dirhams annually will be reduced by 25 percent for the period April 1 to December 31, while annual fees from industrial establishments that pay more than 50,000 UAE dirhams annually to the authority (such as crushers and cement factories) for April 1 to December 31, 2020 will be deferred for a period of one year.
50% discount on Hemaya fines
The General Resources Authority (GRA) has announced the exemption of the fees on commercial vehicles (for investors) until October 1, 2020. Additionally, the GRA is availing a 50 percent discount of ‘Hemaya’ fines against different establishments and service providers until October 1, 2020, provided that the violations occurred prior to this announcement.
It has also offered small businesses, such as grocers, to place their ads on its website free of charge. The CCTV service providers use this website to renew or issue their licenses, and such a proposition will contribute in marketing for their services.
Supporting 15,000 firms, residence visa discounts
Ras Al Khaimah Economic Zone (RAKEZ) has launched a package of customizable incentives, aimed at supporting more than 15,000 companies operating under its umbrella.
These incentives include: A three-month exemption from renewing commercial licenses, flexible options for payment of fees, such as installment plans; a 50 percent discount on the cost of licenses; full exemption from the amount of insurance on new residency visa applications; a 25 percent discount on new residency visas for family members of people employed by RAKEZ companies; full exemption from renewal delay fines; full exemption from cheque postponement fees; full exemption from package downgrade fees; full exemption from changing activity fees; a 25 percent discount on new workers’ housing applications; and complete exemption from entrance fees to centers affiliated with RAKEZ.
Motivational, steering committees
The initiatives launched by Ras Al Khaimah Tourism Development Authority include the establishment of an Incentive Committee and an Internal Steering Committee for the Emirate.
Other initiatives supporting the tourism sector include a six-month exemption from tourist license fees and exemption from the ‘tourism dirham’ fee from March to May 2020; full exemption from tourism licensing fees for the second and third quarters of 2020 and from tourism licensing fines until September 30, 2020.
Support for local businesses, citizen entrepreneurs
Ras Al Khaimah Chamber of Commerce and Industry has lined up measures to support local businesses including 100 percent exemption from delay fines due on memberships ending on June 30, 2020.
In an initiative to support citizen entrepreneurs who benefit from the business incubators program, the chamber decided to exempt them from rental fees due for the period from April to December 2020.
Exemptions for exhibitions
To restore activity to the exhibition sector, Ras Al Khaimah Chamber of Commerce and Industry introduced a 50 percent exemption on foreign exhibition permits until the end of 2020 and a 25 percent exemption on consumer and specialized exhibitions held at Ras Al Khaimah Exhibition Center until the end of 2020.
(Writing by Seban Scaria; editing by Daniel Luiz)
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