UAE fights Covid-19 with over 100 incentives in 45 days

The UAE has proactively risen to the unprecedented challenges posed by the pandemic outbreak by unleashing a multitude of tools from its fiscal and monetary arsenals over the past 45 days.
The wide range of incentives as well as stimulus measures launched by the federal government, local governments and the Central Bank of the UAE has exceeded 100 since the outbreak of Covid-19, according to a survey conducted by the Federal Competitiveness and Statistics Authority.
Swift and effective measures undertaken at various fronts to combat the severe economic setbacks in the wake of the lockdown include Dh256 billion capital and liquidity measures rolled out by the CBUAE as well as a spate of concessions and stimulus packages worth billions of dirham announced by the UAE Cabinet, governments of various emirates, ministries and free zones.
The government has initiated new measures, including the extension of residence permits expiring on March 1st, 2020 for a renewable period of three months without any additional fees upon renewal.
The CBUAE's Dh256 billion capital and liquidity measures consist of Dh50 billion in capital buffer relief, Dh50 billion in zero-cost funding support, Dh95 billion in liquidity buffer relief and a Dh61 billion reduction of cash reserve requirements.
The Ministry of Economy has slashed fees across 94 types of services provided to individuals, companies and the business sector as part of efforts to mitigate the impact of the pandemic.
Other measures include additional banking facilities to various economic sectors, SMEs enterprises and individuals, as well as exemptions, postponing of dues and other related concessions, which will result in positive impact in the second quarter of 2020, the official news agency WAM said.
In Abu Dhabi, several financial incentives to support the residents and businesses have been launched in coordination with local banks and the departments of Finance and Economic Development. These include providing individuals and SMEs with immediate support and, reduction of financing costs.
Banking incentives include moratorium on payments of installments, interest on loans and credit cards for three months, as well as allowing the electronic payment of electricity and water bills, and the opportunity to pay school fees in installments without interest.
For companies, the incentives include the allocation of Dh5 billion to support electricity and water companies, Dh3 billion towards an SME financing guarantee programme, Dh1 billion for the establishment of the "Market Maker Fund." Another measure is reduction of rental service fees by 50 per cent for SMEs on transactions less than Dh5 million, and reducing fees and prices by 50 per cent for accounts without balance.
Incentives also include a three-month payment freeze on bad debts of citizens, and forbidding rental evictions and related executive procedures, as well as the exemption of fees for renewing licences for commercial activities.
Dubai has declared incentives worth Dh1.5 billion for three months to support individuals and the businesses.
The banking incentives in Dubai include delaying the repayment of loans for those without salaries for three months free of interest or fees; a five per cent hike in financing value of residential properties for first time buyers, refund of application fees and fees imposed for the cancellation of travel tickets paid with credit and debit cards, as well as the refund of cash withdrawal fees at ATMs.
Other confidence-boosting measures include the injection of fresh capital into Emirates Airline, a 10 per cent deduction in water and electricity bills for three months, and a cut in insurance premiums by 50 per cent, besides measures launched by free zones, such as postponing the payment of rent.
In Sharjah, the incentives include benefits for the tourism sector such as exempting hotels from municipality fees for three months, discounted fees for exhibitions in 2020, a 50 per cent discount for shops and commercial centres participating in marketing campaigns, and a 50 per cent rental reduction for three months for restaurants, currency exchanges, shops, banks, travel agencies, communication stores, and tourism promotion and car rental companies inside airports.
The governments of Ajman, Ras Al Khaimah, Umm Al Qaiwain and Fujairah have also been quick and effective in implementing several initiatives including exemption from fees for certain government services and partial exemptions for other fees. 
-- issacjohn@khaleejtimes.com