The increase in stimulus follows a slew of other initiatives and aid rolled out by the government and private sector this month/Bloombergby Kudakwashe Muzoriwa
The UAE has increased the size of its stimulus package to AED 126.5 billion as the second-biggest Arab economy seeks to mitigate the impact of COVID-19 on the economy, according to local newswire, WAM.
HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, said that the cabinet approved an additional support package of AED 16 billion, bringing the total size to AED 126 billion.
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.
The increase in stimulus follows a slew of other initiatives and aid rolled out by the government and private sector this month.
Abu Dhabi and Dubai launched economy stimulus packages for the next three months to mitigate the impact of the coronavirus on companies and the business sector in their respective emirates.
Furthermore, several UAE companies unveiled their economic relief packages to support their portfolio of companies following unprecedented steps by the Abu Dhabi and Dubai governments as well as the Central Bank of the UAE to support the local economic environment and boost financial resilience.
Aldar Properties, Meraas, Dubai Holding, Dubai Investments and Al Futtaim Group are some of the UAE firms that launched economic relief packages to support their portfolio of companies.
“We have adopted new systems in the banking, economic and public sectors and provided a healthy infrastructure to deal with the worst possibilities,” said HH Sheikh Mohammed bin Rashid.
HH Sheikh Mohammed bin Rashid also asked local banks to offer companies and individuals relief measures including refinancing and repayment referrals as part of measures to mitigate the impact of COVID-19 on the economy.
The measures announced by the banks seek to support the UAE Government and the Central Bank of the UAE’s six-month economic stimulus package as well as the Dubai Government’s three-month economic stimulus package to support businesses.
According to the Dubai Media Office, Emirates NBD, Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial Bank of Dubai unveiled a series of support measures that will remain in effect for three months starting 1 April 2020.