227 stimulus launched by the UAE in 3 months to boost economic growth
Source:WAM.
Date: June 21, 2020
The number of economic and commercial incentives launched by the federal and local governments in the uae has exceeded more than 227 in about three months, contributing to the growth of the economy and supporting the business sector, according to a monitoring carried out by the Federal Authority for Competitiveness and Statistics.
According to the new monitoring report , issued by the Federal Authority for Competitiveness and Statistics, the second of its kind in three months, ministries and institutions in the federal and local governments continued to launch more stimulus that had positive effects on the economic, commercial, business and individual sectors in general from March to the beginning of June 2020.
The second report was devoted to monitoring stimuli from April 11 to June 4 this year, which amounted to about 127 catalysts, while the number of catalysts monitored by the first report from March 1 to April 10 of the same year was about 100.
The new report shows that federal institutions continued to launch incentives aimed at supporting all sectors and small and medium-sized private companies, as well as individuals, granting exemptions, deferring benefits and other facilities.
From the beginning of April to the beginning of June this year, the Central Bank of the Uae continued to urge banks and financial institutions to support private sector companies, SMEs and individuals due to their role in driving economic growth in the uae by continuing to postpone loan installments to customers with the possibility of extending the deferral period of debt and interest on payments due until December 31, 2020 as part of the comprehensive economic support plan.
He also decided to postpone the implementation of a set of capital standards associated with the plans to implement the requirements of Basel III for all banks, in order to alleviate the operational burdens of the financial sector during this phase.
The Central Bank has developed detailed and comprehensive regulations for the economic support plan through a set of support decisions and to maintain consumer protection, including reducing the amount of the first payment to real estate buyers to facilitate the purchase of real estate, not imposing a minimum on the sME account balance and obliging all banks to open accounts to SMEs within a maximum period of two days, provided that they comply with the requirements for dealing with illegal uses.
At the level of initiatives of the UAE government and federal agencies, the Ministry of Economy has decided to reduce the fees of 94 services for individual, corporate and business customers, which will reduce the cost to the business sector.
The Ministry of Human Resources and Resettlement has launched a package of initiatives to support the continuity of work of private sector enterprises, namely, reducing the fees for obtaining established internal work permits, the possibility of recovering the value of the bank guarantee for workers, eliminating restrictions on enterprises, suspending administrative fines for six months, reorganizing work in terms of wages and leave, and regulating work remotely.
The Securities and Commodities Commission has taken a number of initiatives to support financial markets and companies operating in the field of securities, including adjusting the amount of movement of the share price, to be 5% of the previous closing price maximum and extending the deadline for holding the associations of joint stock companies to June 30 in order to avoid any risks of delayed meetings and grant some exceptions to the system of companies buying their shares in order to facilitate the purchase of companies shares and other incentives.
For its part, the Insurance Authority has launched a second package of incentives, including the free "Insurance Academy for Vocational Training", and some free programs for workers in the sector, extending the application period for the experimental environment of financial technology in the insurance sector and launching fast-track decision-making in applications to June 15, 2020.
While the General Authority for Pensions and Social Security decided to postpone the payment of contributions of private sector companies for a period of three months, which could be extended, the Sheikh Zayed Housing Programme allowed the benefits of beneficiaries to be deferred from 6 months to one year.
The Ministry of Finance announced three new decisions to reduce federal fees, which included reducing registration fees in the register of suppliers and contractors, eliminating renewal fees to be free of charge and eliminating the fees for the sale of tender documents and documents to federal agencies (ministries and agencies) to be free.
The Federal Tax Authority decided to extend the tax period for registrants to the exceptionally selective tax to include March and April 2020.
At the level of local government initiatives to ensure business stability, the Government of Abu Dhabi has allocated 15% of total government annual purchases and contracts to micro, small and medium-sized companies and The Abu Dhabi Economy has decided to eliminate fines and violations of 72,000 economic licenses over AED 246 million.
Incentives launched by Abu Dhabi Government Institutions and Bodies included incentives for the Abu Dhabi Housing Authority and the Abu Dhabi Development Fund to launch a 1 billion dirham initiative to support national companies through soft loans, Hub71, Abu Dhabi Customs and The Abu Dhabi International Market, which will reduce the start-up fees in the market and Khalifa Industrial City.
In Dubai, the institutions that launched the incentives included DIFC, DSO, DCB, Dubai Airport Free Zone Authority (DFSA), Jebel Ali Free Zone (Jafza), Mohammed Bin Rashid Foundation for Small and Medium Enterprises Development, Mohammed Bin Rashid Foundation for Small and Medium Enterprises Development, Dubai Customs, Dubai World Trade Centre Authority, Dubai South Free Zone and Dubai Medical City Authority.
The Government of Sharjah has injected AED 4 billion through short-term instruments to enhance liquidity in the emirate's banks. Sharjah City Free Zone has launched an assistance package to support existing customers and exempt permanent customers from 3 months' rent and other incentives.
In Ajman, the free media city of Ajman has decided to extend its support packages to its operating companies: to extend the cancellation of fines in ajman free media city due to the non-renewal of leases for rented units until May 15th, and to extend the refund of all amounts received as guarantees for rented units until May 15th, and the Ajman Free Zone decided to allocate 6 million dirhams to support the management of the Chinese market in Ajman. The Ajman Transport Authority decided to support franchisees in the transport sector.
In Um mqween Emirate, a package of incentives has been launched to support business and individual sectors, including a 50% reduction in new license fees and renovations of all kinds (commercial, industrial, professional) and the elimination of delay fines for expired licenses on companies and economic institutions in the emirate and other incentives.
For its part, the Government of Ras Al Khaimah has launched a package of incentive measures and facilities covering various business sectors in the emirate, including a 25% exemption on commercial license renewal fees that were closed on the basis of circulars from government agencies and other incentives.
The Fujairah government has decided to support the business sector with exemptions from local duties and taxes, including exempting businesses from annual commercial license fees, exempting resorts, hotels and hotel apartments from the planned local tax and exempting businesses from the fees of the Fujairah Chamber of Commerce and Industry for 2020.
Date: June 21, 2020
The number of economic and commercial incentives launched by the federal and local governments in the uae has exceeded more than 227 in about three months, contributing to the growth of the economy and supporting the business sector, according to a monitoring carried out by the Federal Authority for Competitiveness and Statistics.
According to the new monitoring report , issued by the Federal Authority for Competitiveness and Statistics, the second of its kind in three months, ministries and institutions in the federal and local governments continued to launch more stimulus that had positive effects on the economic, commercial, business and individual sectors in general from March to the beginning of June 2020.
The second report was devoted to monitoring stimuli from April 11 to June 4 this year, which amounted to about 127 catalysts, while the number of catalysts monitored by the first report from March 1 to April 10 of the same year was about 100.
The new report shows that federal institutions continued to launch incentives aimed at supporting all sectors and small and medium-sized private companies, as well as individuals, granting exemptions, deferring benefits and other facilities.
From the beginning of April to the beginning of June this year, the Central Bank of the Uae continued to urge banks and financial institutions to support private sector companies, SMEs and individuals due to their role in driving economic growth in the uae by continuing to postpone loan installments to customers with the possibility of extending the deferral period of debt and interest on payments due until December 31, 2020 as part of the comprehensive economic support plan.
He also decided to postpone the implementation of a set of capital standards associated with the plans to implement the requirements of Basel III for all banks, in order to alleviate the operational burdens of the financial sector during this phase.
The Central Bank has developed detailed and comprehensive regulations for the economic support plan through a set of support decisions and to maintain consumer protection, including reducing the amount of the first payment to real estate buyers to facilitate the purchase of real estate, not imposing a minimum on the sME account balance and obliging all banks to open accounts to SMEs within a maximum period of two days, provided that they comply with the requirements for dealing with illegal uses.
At the level of initiatives of the UAE government and federal agencies, the Ministry of Economy has decided to reduce the fees of 94 services for individual, corporate and business customers, which will reduce the cost to the business sector.
The Ministry of Human Resources and Resettlement has launched a package of initiatives to support the continuity of work of private sector enterprises, namely, reducing the fees for obtaining established internal work permits, the possibility of recovering the value of the bank guarantee for workers, eliminating restrictions on enterprises, suspending administrative fines for six months, reorganizing work in terms of wages and leave, and regulating work remotely.
The Securities and Commodities Commission has taken a number of initiatives to support financial markets and companies operating in the field of securities, including adjusting the amount of movement of the share price, to be 5% of the previous closing price maximum and extending the deadline for holding the associations of joint stock companies to June 30 in order to avoid any risks of delayed meetings and grant some exceptions to the system of companies buying their shares in order to facilitate the purchase of companies shares and other incentives.
For its part, the Insurance Authority has launched a second package of incentives, including the free "Insurance Academy for Vocational Training", and some free programs for workers in the sector, extending the application period for the experimental environment of financial technology in the insurance sector and launching fast-track decision-making in applications to June 15, 2020.
While the General Authority for Pensions and Social Security decided to postpone the payment of contributions of private sector companies for a period of three months, which could be extended, the Sheikh Zayed Housing Programme allowed the benefits of beneficiaries to be deferred from 6 months to one year.
The Ministry of Finance announced three new decisions to reduce federal fees, which included reducing registration fees in the register of suppliers and contractors, eliminating renewal fees to be free of charge and eliminating the fees for the sale of tender documents and documents to federal agencies (ministries and agencies) to be free.
The Federal Tax Authority decided to extend the tax period for registrants to the exceptionally selective tax to include March and April 2020.
At the level of local government initiatives to ensure business stability, the Government of Abu Dhabi has allocated 15% of total government annual purchases and contracts to micro, small and medium-sized companies and The Abu Dhabi Economy has decided to eliminate fines and violations of 72,000 economic licenses over AED 246 million.
Incentives launched by Abu Dhabi Government Institutions and Bodies included incentives for the Abu Dhabi Housing Authority and the Abu Dhabi Development Fund to launch a 1 billion dirham initiative to support national companies through soft loans, Hub71, Abu Dhabi Customs and The Abu Dhabi International Market, which will reduce the start-up fees in the market and Khalifa Industrial City.
In Dubai, the institutions that launched the incentives included DIFC, DSO, DCB, Dubai Airport Free Zone Authority (DFSA), Jebel Ali Free Zone (Jafza), Mohammed Bin Rashid Foundation for Small and Medium Enterprises Development, Mohammed Bin Rashid Foundation for Small and Medium Enterprises Development, Dubai Customs, Dubai World Trade Centre Authority, Dubai South Free Zone and Dubai Medical City Authority.
The Government of Sharjah has injected AED 4 billion through short-term instruments to enhance liquidity in the emirate's banks. Sharjah City Free Zone has launched an assistance package to support existing customers and exempt permanent customers from 3 months' rent and other incentives.
In Ajman, the free media city of Ajman has decided to extend its support packages to its operating companies: to extend the cancellation of fines in ajman free media city due to the non-renewal of leases for rented units until May 15th, and to extend the refund of all amounts received as guarantees for rented units until May 15th, and the Ajman Free Zone decided to allocate 6 million dirhams to support the management of the Chinese market in Ajman. The Ajman Transport Authority decided to support franchisees in the transport sector.
In Um mqween Emirate, a package of incentives has been launched to support business and individual sectors, including a 50% reduction in new license fees and renovations of all kinds (commercial, industrial, professional) and the elimination of delay fines for expired licenses on companies and economic institutions in the emirate and other incentives.
For its part, the Government of Ras Al Khaimah has launched a package of incentive measures and facilities covering various business sectors in the emirate, including a 25% exemption on commercial license renewal fees that were closed on the basis of circulars from government agencies and other incentives.
The Fujairah government has decided to support the business sector with exemptions from local duties and taxes, including exempting businesses from annual commercial license fees, exempting resorts, hotels and hotel apartments from the planned local tax and exempting businesses from the fees of the Fujairah Chamber of Commerce and Industry for 2020.
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