CBUAE’s economic support scheme
Central Bank of the UAE (CBUAE) launched an AED 100 billion comprehensive Economic Support Scheme for retail and corporate customers affected by COVID-19. These measures will come into force with immediate effect since World Health Organisation declared Covid-19 as a global pandemic.
The Economic Support Scheme consists of AED 50 billion from the CBUAE funds through collateralised loans at zero cost to all banks operating in the UAE and of AED 50 billion funds freed up from banks’ capital buffers.
The purpose of the targeted scheme is to facilitate the provision of temporary relief from the payments of principal and interest on outstanding loans for all affected private sector companies and retail customers in the UAE. Participating banks should use the funding to grant temporary relief to private sector corporate customers and retail clients for a period of up to 6 months.
CBUAE adopted a wide-ranging stimulus package, the Targeted Economic Support Scheme'-TESS (PDF). The CBUAE’s TESS succeeded in enhancing the financial system capacity to support individuals and companies affected by the COVID-19 repercussions.
Additional AED16 billion stimulus package
The UAE Cabinet has approved an AED16 billion economic stimulus package as part of the Federal Government's additional measures to support the national economy, ensure businesses continuity, and mitigate the coronavirus impact.
The latest financial support complements those announced recently by the emirates of Abu Dhabi and Dubai, along with that of the Central Bank of the UAE, taking to AED126.5 billion the total value of stimulus packages introduced since the COVID-19 outbreak to survive the current challenging conditions.
The measures include a renewable six-month suspension of work permit fees and reduction of labour and other charges to cut the cost of doing business, support small businesses and accelerate major infrastructure projects.
Business Continuity Readiness Guidelines
National Emergency Crisis and Disaster Management Authority (NCEMA) launched the Business Continuity Readiness Guidelines for UAE Organisations in the event of the novel coronavirus, COVID-19 outbreak, as part of efforts to boost the nation's readiness and response to emergencies and to transfer the best international practices.
The purpose of this guide is to demonstrate precautionary and preventive measures aiming to sustain business continuity for organisations by:
- protecting and safeguarding individuals and society from the risk of epidemics in organizations
- determining the critical functions for business continuity measures, taking into account the potential impact of the epidemic
- knowing the necessary measures to be taken in the event of an epidemic outbreaks among employees
- knowing how to activate business continuity plans in the event of losing individuals due to an outbreak in the workplace.
- reducing and minimising the spread of the epidemic in the organization
Updated on 20 Dec 2020