How Abu Dhabi is combating COVID-19 with Toll Waiver, Fee Cuts to support the Economy
23 Apr 2020 |Covid-19 Impact on the Middle East
Good News for the vehicle owners as you don’t have to pay road tolls until the end of 2020
The World Economy is at its stake so does the UAE. With the rise of this world Pandemic disease Coronavirus, every country is fighting in its way to support the economy until the time gets better. At the time the government of Abu Dhabi has announced a massive stimulus package for the economy to support businesses.
With the announcement from the Abu Dhabi Executive to amend 16 new initiative under its Ghadan 21 scheme to implement immediately. Among them the electricity and the water subsidies, measures for the SME’s and the exemptions and the fee reductions to support the economy and the business that will reduce the cost of living.
Abu Dhabi Crown Prince Sheikh bin Zayed said on twitter that about the discussion of the current economic and business climate that is going on the recent time. With its existing stimulus programme in Abu Dhabi and those launched recently by the Central Bank and the local government are solid pillars in supporting the UAE’s economic stability. Moreover, he added that the authorities will continue to develop the ease of investment laws and regulations that will make more flexible in maintaining economic development.
Abu Dhabi Government has taken some initiative to support the economy at the time of this Coronavirus Pandemic that includes:
- The government has allocated Dhs5bn to subsidise water and electricity for citizens and commercial and industrial activities
- Subsidised the electricity connection fees for startups until the end of 2020
- All the commercial and industrial activities are being exempted from Tawtheeq fees this year
- The government has allocated Dhs1bn to establish market maker fund to enhance the liquidity and sustain the balance between supply and demand for stocks
- Allocated Dhs3bn to the SME credit guarantee scheme managed by the Abu Dhabi Investment Office to stimulate financing by local banks and enhance SME’s ability to cope with the current situation
- To settle all the approved government payables and invoices within 15 working days
- To suspend all the Real Estate registration fees this year
- Reduce all the industrial land leasing fees by 25 per cent on the new contract
- Suspending bid bonds and exempting startups of performance guarantees for projects up to Dhs50m
- To wave off current commercial and industrial penalties
- All the commercial vehicles are being exempted from annual registration fees till the end of this year
- To exempting all vehicles from traffic from road tolls to the end of the year
- Suspending of tourism and municipality fees for tourism and entertainment sector for this year
- Establishing a new committee headed by the Department of Finance with members from the Department of Economic Development and local banks to review the lending options to support local companies.
- To offer up to 20 per cent rebate on rental values for the restaurants and entertainment sectors