Abu Dhabi: Abu Dhabi Executive Council (ADEC) has launched a new set of initiatives under "Ghadan 21" on Monday, including a series of stimulus packages to boost small and medium enterprises (SMEs) and ease the availability of loans to local companies.
Also included are water and electricity subsidies for citizens, and commercial and industrial activities, as well as all exemption of vehicles from road tolls till the end of 2020.
In a series of tweets on Monday, His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, announced that all approved capital expenditure and development projects in the emirate will continue as planned.
“I’ve discussed with officials in Abu Dhabi the current economic and business climate...The existing stimulus programmes in Abu Dhabi and those launched recently by the Central Bank and local governments are the solid pillars that will support & protect the UAE's economic stability.”
The initiatives include the following:
- Allocating Dh5bn to subsidise water and electricity for citizens, and commercial and industrial activities.
- Subsidising electricity connection fees for startups until the end of this year.
- Exempting all commercial and industrial activities from Tawtheeq fees this year.
- Allocating Dh3bn to the SME credit guarantee scheme managed by Abu Dhabi Investment Office to stimulate financing by local banks and enhance SME’s ability to navigate the current market environment.
- Allocating Dh1bn to establish a market maker fund, to enhance liquidity and sustain balance between supply and demand for stocks.
- Settling all approved government payables & invoices within 15 working days.
- Suspending bid bonds and exempting startups of performance guarantees for projects up to Dh50 million.
- Reducing industrial land leasing fees by 25% on new contracts.
- Suspending real estate registrations fees for this year.
- Waiving current commercial and industrial penalties.
- Exempting commercial vehicles from annual registration fees to the end of 2020.
- Exempting all vehicles from road toll tariffs till the end of 2020.
- Suspending tourism and municipality fees for tourism & entertainment sectors for this year.
- Offering up to 20% rebate on rental values for the restaurants and tourism and entertainment sectors.
- Establishing a new committee headed by the Department of Finance, with members from the Department of Economic Development and local banks to review lending options to support local companies.