Financial Initiatives for SME’s & Individuals:
In line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, First Abu Dhabi Bank, Abu Dhabi Commercial Bank Group and Abu Dhabi Islamic Bank in coordination with the Abu Dhabi Department of Finance and Department of Economic Development, have put together 17 financial initiatives to support individuals and SMEs amid COVID.
1. For SMEs impacted by COVID 19 :
a- Defer installments ( principal & interest ) on existing borrowing for up to 3 months for eligible customers until 30 June 2020 with no additional bank charges
b- Reduce bank merchant service ( credit card transactions ) fees by 50% for eligible SMEs customers with usage below AED 5 M per annum until 30 June 2020
c- Reduce Banking Fees and charges on Zero Balance accounts by up to 50% for eligible customers
d- Reduce Min available balance requirements for all SME account categories to up to AED 10,000 per month for eligible customers
2. For All SMEs:
a- Defer Installments ( principal & interest ) on new borrowing for up to 3 months for eligible customers until 30 June 2020 with 50% reduction in associated bank charges
b- reduce interest charges on new borrowing based on new prevailing interest rates for eligible customers
c- Reduce bank charges by 50% on early settlements of existing borrowing for eligible customers until 30 June 2020
3. For Individuals impacted by COVID 19:
a- Defer instalments ( principal & interest ) on existing loans ( personal, auto, mortgage ) and credit cards for up to 3 months for eligible customers until 30 June 2020 with no additional bank charges
b- Halt foreclosures on mortgages for defaulted customers until 30 June 2020
c- halt suspension of bank accounts for retrenched customers until 30 Sep 2020
d- Refund credit card processing fees in full for foreign currency transactions committed after 1 Jan 2020, associated with cancellation of travel plans
e- Instalment programs with no service fees for utility bill payments until 30 June 2020
4. For all individuals :
a- Defer instalments ( principal & interest ) on new loans ( personal, auto, mortgages ) and credit cards for up to 3 months for eligible customers until 30 June 2020 with 50% reduction in associated bank charges
b- Reduction interest charges on new loans ( personal, auto, mortgages ) and credit cards for eligible customers based on new prevailing rates for eligible customers
c- Reduce bank charges by 50% on early settlements of eligible customers until 30 June 2020
d- Reduce required down payment by 5% for first time home buyers
e- Interest free installment plans for school tuition with waiver of service charges or 0% interest loan until 30 June 2020.
Nakheel unveils AED 230M relief package for customers
Dubai-based property developer Nakheel has announced AED 230 million ($62.6m) economic relief package for its customers amid the ongoing coronavirus pandemic, including rent free periods at its malls, the company has announced. In a statement issued by the company on Thursday, Nakheel said that the economic relief package is aimed at helping reduce the financial burdens faced by businesses and individuals during the crisis. The package includes free rental periods for retail and hospitality partners who operate within the Nakheel Malls portfolio.
The initiative will take effect when the malls – which are currently shut as a precautionary measure – reopen. Additionally, small retail business owners who lease space at Nakheel’s master communities will also receive a rental holiday. The company also said that the administration is waiving charges across various services for a three-month period.
UAE launches fund to unify anti-coronavirus efforts
The National Crisis & Emergency Management Authority, the Emirates Red Crescent and other charitable organizations and societies in the UAE have unified their efforts to combat the coronavirus, COVID-19, pandemic by contribution their efforts to “The Fund of the United Arab Emirates: Homeland of Humanity”.
The Fund will receive financial and in-kind donations by individuals and organizations in addition to other contributors, including facilities, essential utilities and different types of supply chain management charities across the nation. A mechanism to regulate these donations has been established to unify all anti-COVID-19 efforts.
The UAE Government supports the Economy with Initiatives & Schemes worth 126.5 Billion
The Federal Cabinet aims to take measures to support the national economy, ensure businesses continuity, and mitigate the coronavirus impact by setting up a government committee to circumvent the negative impact on businesses and the economy of UAE after the COVID-19 lockdown and put into
place preventive measures announced by Abu Dhabi, Dubai and the Central Bank of UAE. The initiative of this committee which shall put into place the measures shall be headed by the Ministry of Economy (MoE) and intends to support business in various schemes and measures for which the budget is totaled
at AED 126.5 Billion from the Government of UAE.
The MoE with the assistance of other supporting relevant bodies shall propose measures to limit the economic downturn on businesses and individuals faced with the outcome of the bleak financial circumstances post COVID-19.
The committee shall also be required to assess the real impact of these measures and how they would help the businesses or individuals in a practical sense and if the same require to be amended in future to have more of a beneficial impact on the national economy and weekly reports of the same shall be discussed by the committee.
DMCC announces support package for businesses to boost UAE’s economic resilience
DMCC announced the roll-out of a Business Support Package to support its business community, as well as new companies to navigate the current economic environment.
The benefits are applicable as of 1st April, 2020 until 30th June, 2020, includes a range of discounts and waivers to support the current economic initiatives taking shape by all government authorities to support business and financial sectors.
Measures applicable to DMCC’s existing 17,000 member companies include the following:
a 100 percent waiver for late license renewal penalties;
100 percent waiver for all Flexi Desk and DMCC Business Centre penalties until the end of 2020;
100 percent waiver of the Office Sharing Permit fee;
100 percent waiver of the Company Reinstatement fees;
30 percent discount on license renewal;
waiver of outdoor area rents for JLT retailers with existing contracts where DMCC is the building
waiver of rent for two months for commercial establishments impacted by the latest Dubai
Economy directive requiring a temporary closure where DMCC is the building owner/landlord;
three-month suspension of rent for Flexi Desk and DMCC Business Centre tenants renewals or
monthly/quarterly instalments with no discount.
Associate Director – Legal Services
Company Secretary, Lawyer, and Commerce Graduate having 10 years of experience globally.
Areas of Specialization:
– Business advisory
– Regulatory Compliances and Governance
– International Commercial Contracts
– Commercial Law and Business Establishment
– Employment Laws
– Land Department Laws