On 12 March 2020, the Dubai Government announced a AED 1.5 billion economic stimulus package to enhance liquidity and cushion the potential impact of the current global economic situation caused by the onset of the COVID-19 outbreak. The package includes 15 focused initiatives aimed at reducing the cost of doing business and simplifying business procedures, especially in the commercial, retail, external trade, tourism, and energy sectors.
Fifteen initiatives will be introduced soon and shall be valid for three months, after which time their impact on the UAE economy will be reviewed. According to news reports, Dubai’s key initiatives include:
Abu Dhabi has also announced 15 initiatives focused on supporting SMEs and easing the availability of loans to local companies. These measures are a part of “Ghadan 21”, an AED 50 billion development plan announced by Abu Dhabi in 2018 aimed at enhancing the competitiveness of the emirate.
According to news reports, key initiatives announced by Abu Dhabi include:
Businesses around the world are affected by COVID-19 and face issues linked to cash flow, profitability and ultimately continuity. Several governments, like Dubai and Abu Dhabi, are being proactive in rolling out stimulus packages with the intention of optimizing costs, supporting businesses and demonstrating support.
We will continue to monitor these initiatives while we await the details of their implementation over the coming days.
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