Government and Private Incentive Management

To minimise the economic impact of the COVID-19 pandemic, the UAE Government has announced a special economic stimulus package which includes deferral of bank loans, mortgage, as well as credit card payments for Small and Medium Enterprises (SMEs) and individuals. There will be a reduction of bank merchant service fees, banking and instalment fees and the performance guarantees for SMEs and startups will be suspended or waived.

Transaction fees and penalties have been waived and a market maker fund will be established to sustain market balance. Waivers have been granted to all major tenants of property developers and utility costs including water and electricity costs will be subsidised for both residents and companies. There will also be a concession on gas consumption, as well as exemption and reductions in government and commercial fees, including licence fees for companies in Free Zones.

The municipal fees for the tourism and entertainment sectors will be reduced or suspended and the service fees for commercial registration, trademark and intellectual property services will be reduced. The stimulus package also covers several tax reform measures to strengthen the economy. These include refunds and reductions in custom duty fees and an extension of the deadline for filing/payments of VAT returns. There have been several amendments of employment terms including the granting of paid leave, leave without pay and the temporary or permanent reduction of employee wages. Employers can use the Virtual Labor Market system to register surpluses in the workforce. Measures will be taken to ensure free movement of labour in and out of Free Zones such as the Dubai International Financial Centre (DIFC).