02 09 2020

New measures of the Dubai economy support were announced

New measures of the Dubai economy support were announced

The Dubai authorities have made a decision aimed at supporting the economy, which has felt the negative effects of the effects of the COVID-19 virus. The authorities, like no one else, are interested in an early economic recovery. AED 1.5 billion was allocated to mitigate the impact of the coronavirus and stimulate the economy and business.

This decision was taken directly by the ruler of Dubai, Mohammad bin Rashid Al Maktoum, who is also the Prime Minister and Vice President of the United Arab Emirates. The announcement of measures to support the economy was made by the Prince of Dubai, Hamdan bin Mohammed bin Rashid Al Maktoum.

Since the authorities have already allocated money to support businesses in the local market, in total, starting from March 2020, the amount amounted to 6.3 billion dirhams. All the money went to maintain the liquidity of the business so that the companies could remain more or less functioning. The effect of this decision clearly plays a favorable role for the companies, they do not experience excessive financial pressure.

In the tourism sector, namely, the entire restaurant business and hotels, the authorities decided to return 50% of the municipal tax, the amount of funds is fixed from July to December of this year. But they decided not to stop there and return half of the tourist fees during 2020.

To reduce financial pressure, the authorities decided to exempt private schools from fees and fines related to the respective licenses, which need to be renewed. Schools no longer have to worry about renewing licenses until the end of 2020. The construction sector did not go unnoticed, there is a completely new financial introduction of a model through which all parties will receive a guarantee to meet the deadlines for receiving payment for the work done.

Sheikh Hamdan said: “We are absolutely confident in our economic system, in its unshakable reliability and flexibility. We are helping and will continue to help the private sector go through this difficult stage in order to quickly return to a normal rhythm of work. We can declare with full responsibility that we will help all sectors of our economy”.

Recall that the first program in Dubai to stimulate the economy was implemented back in March. The initial amount was 1.5 billion dirhams. The program implementation period was 3 months and covered 15 areas with a strong focus on retail and foreign trade, energy and tourism sectors.

Also, the program included such measures as: reduction of tariffs for water and electricity by 10% for a period of 3 months for legal entities and individuals. All measures had a particularly positive effect on work in the sectors of retail and foreign trade, tourism, and logistics services.