Abu Dhabi economic stimulus package
Abu Dhabi Executive Council is providing a dynamic economic stimulus package to support economic activity, reduce the costs of living, facilitate business in the emirate and protect the UAE's economic stability.
The economic stimulus package includes the following initiatives:
- continuing with all approved capital expenditure and development projects in the emirate, as well as with further measures to preserve Abu Dhabi’s economic gains, prioritising startups and SMEs
- formulating plans to stimulate strategic investment sectors and to form a new committee headed by Department of Finance, with members from Department of Economic Development and local banks to review lending options to support local companies
- developing investment laws and regulations and ensuring their flexibility to maintain Abu Dhabi’s progressive economic development
- allocating AED 5 billion for water and electricity subsidies for citizens and the commercial and industrial sectors, with an intention to reduce the cost of living and support businesses, as well as subsidising electricity connection fees for startups until the end of the year 2020
- allocating AED 3 billion to the SME Credit Guarantee Scheme managed by Abu Dhabi Investment Office (ADIO) to stimulate the ability of SMEs to navigate the current market environment
- allocating AED 1 billion to financial markets to establish a market maker fund, to enhance liquidity and sustain balance between supply and demand for stock
- exempting all commercial and industrial activities from property registration (Tawtheeq) fees levied by the municipality
- exempting individual and commercial real estate registration fees for this year
- suspending bid bonds and exempting startups from performance guarantees for projects up to AED 50 million
- ·not charging annual vehicle registration fees for commercial vehicles and not levying traffic toll for all vehicles
- ·offering up to 20 per cent rebate on the rental value of the restaurant, tourism and entertainment sectors
- suspending tourism and municipality fees for the tourism and entertainment sectors for this year
- settling all approved government payables and invoices within 15 working days
- waiving all current commercial and industrial penalties
- reducing industrial land leasing fees by 25 per cent for new contracts.
Abu Dhabi banks’ initiatives for customers
Abu Dhabi banks including First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB), in coordination with Abu Dhabi’s Department of Finance and Department of Economic Development, launched 10 banking-related initiatives specifically for the benefit of individuals and 7 financial initiatives for SMEs to protect them from the economic impact of the spread of COVID-19 in the UAE.
Initiatives for individuals
Banks have a few initiatives for those individuals specifically affected by COVID-19 and some initiatives that are for all individuals.
Initiatives for individuals impacted by COVID-19
- defer instalments (principal and interest) on existing loans (personal, auto, mortgages) and credit cards for up to 3 months for eligible customers until 30 Jun 2020 with no additional bank charges
- halt foreclosures on mortgages for defaulted customers until 30 Jun 2020
- halt suspension of bank accounts for retrenched customers until 30 Sep 2020
- refund credit card processing fees in full for foreign currency transactions conducted after 1 January 2020, associated with cancellation of travel plans
- make available installment programmes with no service fees for utility bill payments until 30 Jun 2020
Initiatives for all individuals
- defer installments (principal and interest) on new loans (personal, auto, mortgages) and credit cards for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in associated bank charges
- reduce interest charges on new loans (personal, auto, mortgages) and credit cards for eligible customers based on new prevailing rates for eligible customers
- reduce bank charges by 50 per cent on early settlement of existing loans (personal, auto, mortgages) for eligible customers until 30 Jun 2020
- reduce required down-payment by 5 per cent for first-time home buyers
- provide interest-free installment plans for school tuition with waiver of service charges or zero per cent interest loan until 30 Jun 2020.
Initiatives for SMEs
Banks have a few initiatives for those SMEs specifically affected by COVID-19 and some initiatives that are for all SMEs.
Initiatives for SMEs impacted by COVID-19
- defer installments (principal and interest) on existing borrowing for up to 3 months for eligible customers until 30 Jun 2020 with no additional bank charges
- reduce bank's merchant service fees (credit card transactions) by 50 per cent for eligible SME customers with usage below AED 5 million per annum until 30 Jun 2020
- reduce banking fees and charges on ‘zero balance’ accounts by up to 50 per cent for eligible customers
- reduce the requirements for maintaining minimum average balance for all SME account categories to up to AED10,000 per month for eligible customers.
For all SMEs
- defer installments (principal and interest) on new borrowings for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in associated bank charges
- reduce interest charges on new borrowings based on new prevailing interest rates for eligible customers
- reduce bank charges by 50 per cent on early settlement of existing borrowings for eligible customers until 30 Jun 2020.
All the initiatives stated may be revisited and updated subject to the latest market conditions.