With the outbreak of the novel coronavirus, the global economy is experiencing a major crisis. While individuals are adjusting to a “new normal” due to the need for social distancing, businesses are also facing changes that threaten to cripple the economy.
In order to mitigate the negative impact of the COVID-19 outbreak on the economy in Dubai, the government has taken some initiatives. To be exact, the Dubai government under the orders of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister of UAE and the ruler of Dubai, has introduced a stimulus package to supplement the Dubai economy.
Stimulus Package for Dubai Economy
The economic stimulus package, which is worth a total of Dh 126 billion, has been launched in order to safeguard the interests of the UAE economy in the face of the coronavirus pandemic. It will protect citizens, investments, and businesses in the face of this global turmoil. The latest addition to the initial package is worth Dh 16 billion.
The latest initiative in the stimulus package will support companies and the business sector in Dubai. It will be active over a three-month period, after which the outcomes of the initiative will be evaluated.
Furthermore, it will playa role in reducing the cost of living and business operations, via a reduction in water and electricity bills for residential, commercial, and industrial sectors. It further includes a 50% on deposit paid for water and electricity connection. This will provide great relief to the country at a time when jobs and businesses are facing uncertainty.
Purpose of the Stimulus Package
The measures taken via the economic stimulus package include a renewable six-month suspension of work permit fees and reduction of labour and other charges to:
- Reduce business operating costs
- Support small and medium enterprises (SMEs), and
- Accelerate major infrastructure projects.
Such measures will reduce the negative impact on the economy as a result of the global crisis. Consequently, it will facilitate all individuals and businesses in the face of the coronavirus pandemic.
Sectors Benefitting from the Package
The package entails initiatives spanning over a variety of sectors for the purpose of benefitting all residents, businesses, and investments in the economy. In particular, these initiatives will prove helpful to small and medium enterprises (SMEs) by simplifying business procedures and cutting business costs. The industries being targeted in the initiatives include:
- External Trade
- Commercial & Business Sector
UAE’s Role in Global Pandemic Relief
During the virtual meeting where the initiative was announced, His Highness Sheikh Muhammad explained that the Dubai government will be part of all global efforts to contain the COVID-19 pandemic, and further claimed that the UAE government is prepared to cope with all future circumstances.
According to HH Sheikh Muhammad, “Coronavirus is a health virus, an economic virus, and a political virus too… and we say to all the countries of the world: It is the time for unity, cooperation and solidarity to fight the worst enemy of humankind.”
He provided further assurance to the people of the country by saying “we will safeguard the health of our society. We will protect our economy. We will protect education. We will cross such a global crisis with confidence”.
The generous economy-boosting package launched by the Dubai government is sure to provide relief in these daunting times.