The New Stimulus Packages include three-stage "flexible packages" intended to help the UAE's economy expand, along with sufficient measures to stimulate investment and the labour market in the Emirates.
The goal of the programme as a whole is to create diverse business-based economic drivers, generating potential prospects while modernising technologies. The main aspects of the programme include economic solidarity, as well as the growth and development of new business in the UAE.
Dubai has launched yet another economic stimulus package to help the economy and population. The latest package amounts to AED 500 million, and the cumulative stimulus announced this year amounts to AED 6,8 billion.
"Their goal is to help industries resolve the problems posed by the spread of the pandemic and to rebound more rapidly to create a new period of economic development."
The private sector is a vital participant in Dubai's growth and provides the struggles of the various sectors. The stimulus plan includes a collection of tax exemptions and rent reductions as well as an expansion of previous relaxations.
They function as a single cohesive agency, and their main objective is rapid rehabilitation. It is crucial to have a coherent work plan to support all industries to help sustain the stability of companies, incredibly small and medium-sized enterprises. They need to build a more versatile economic climate that can respond to global developments.
Thanks to the latest stimulus programme, advertisement firms have been exempted from advertising permit payments levied by the Municipality of Dubai for three months.
Private nurseries of the Emirate have been removed from commercial licence renewal fees; nursery clinics are given extended licences. The authorisation of health practitioners employed in nurseries has renewed for a term of 6 months from the expiry date. A 50% discount in rent by the end of the year is provided to nurseries working in the 'Information Fund Institution' premises.
The new stimulus plan extended the validity of some of the measures announced during the prior stimulus package by an extra three months. The extension requires the 2.5 per cent freeze on retail charges and the cancellation of all fees related to late billing for government services. No renewal of commercial licences (during this period) would also be necessary for the payment of fines.
Besides, commercial licences are renewed without the need to open the lease contract. 25% of the down balance on the payment of government payments in instalments has been cancelled. Sales commissions and promotional sales have since been exempted.
The initiative in which the bank or cash pledge AED 500 for customs clearance operations will continue to be waived. The bank or cash guarantees paid by the customs clearance firms is refunded. The payments for customs documents continue to be AED 5, which was AED 50 for each transaction, and handling of customs grievances is expedited.
Relaxations for the travel, culture and event markets are extended until the end of the year. The freeze on hotel ranking fees, ticket prices, registration fees and other government fees is extended.
As in the public market, by the end of the year, private schools are exempted from industrial and professional licences.
The provisional entry permit artworks borrowed from institutions outside the Emirate has extended before the end of 2020; paintings that have come into being in the fourth quarter of 2019, and remain here, are permitted to be raised till the year ends.
For the travel and entertainment industry, the plan to rebate 50 per cent of the 7 per cent local purchase fees for hotels and restaurants has been extended by the end of 2020. For the remainder of the year, the "Tourism Dirham Fees" has also been halved. For the rest of the year, the "Tourism Dirham Fees" has split.
According to the state news agency, the small and medium-sized enterprises aided in the first stage of the plan proposed to encourage tourism in the UAE.
In the foreign market, the exemptions for docking charges at the port of Dubai and Hamriya for conventional merchant vessels registered locally in the UAE have been extended.
The new stimulus plan unveiled by Sheik Hamdan included relief for a variety of industries. The goal is to make the economy rebound quicker. Stimulus packages concentrate on lending a hand to distressed companies, incredibly small and medium-sized enterprises.
New Stimulus Initiatives Until the end of 2020
- Advertising permit fees exemption
- Six months license extension
- 50% rent reduction for nurseries
- License renewal exemption
- Taxi concession fees reduction
Extension of Previous Stimulus Initiative Until the end of 2020
- Waiver for all penalties
- Freezing of market fees
- Freezing of all government fees on ticket sales and permits
- Freezing of permit fees
Measures to Reestablish Economic Environment
Due to the COVID-19 pandemic, there was a successive drop in figures. And there has been a large amount of competition to be sustained on the industry.
Some essential measures are taken to safeguard companies by cutting employer recruiting expenses, budget allocation for projects, creating a virtual labour market and even a programme of automatically renewing workers' visas. It will allow individuals to stay at work without going through the visa renewal process.
These initiatives are seen as crucial aspects that could lead to the resurrection of the UAE economy.
In the aftermath of the pandemic, as the situation becomes weak every month politically, there was no ray of light that business and company could see.
In March 2020, the UAE Central Bank issued a stimulus package of Dh256 billion ($70 billion) to help companies survive the pandemic.
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