UAE is all set for opening up the business environment post the lockdown with utmost care.
Strict guidelines are in place to practice social distancing, personal safety at the workplace & outdoors, disinfection drives, and more.
Businesses in Dubai are preparing for the scale-up after a downtime due to the pandemic.
Businesses are Trying for a Comeback
Most of the sectors such as Airlines, Tourism, hospitality, etc., were completely shut and are opening up partially to serve the public in need.
With work-from-home, social distancing, disinfection drives, complete lockdown. UAE is constantly trying out all means to curb the virus spread.
Businesses on a global scale have their cash flow affected due to the suspended operations.
However, businesses are trying to make a comeback with innovative measures to sustain and sail through the downtime.
Stimulus Packages Launched by the UAE Government
Businesses are welcoming the Stimulus packages offered by the UAE Government. It is aimed at SMEs in the region to sustain and get through the downtime.
UAE Ministry is cutting the fees of most of its business support services to:
- Support and promote business activities
- Reduce the cost of running the business
SMEs and entrepreneurs are looking at new ways of doing business and finding our new supply-chain opportunities.
Preparedness Plan by Businesses
Businesses have mapped out a preparedness Plan. To sustain their business operations and sail through the tough times, businesses have initiated the following:
- Work from home for employee safety and continuing business operations
- Technology Transformation and Digital Adoption
- Conducting Virtual Meetings
- Creating a platform for online shopping, eCommerce, & online transactions, etc.
Stimulus Packages from UAE Government Entities
1. Central Bank of the UAE (CBUAE)
The CBUAE launched an AED 100 billion incentive as part of the comprehensive Economic Support Scheme. It is for retail and corporate customers affected by COVID-19.
The stimulus package from the Central Bank will be channelized as an AED 50 billion zero cost loans for all banks operating in the UAE. Also an AED 50 billion for freeing up the bank’s capital buffer.
The scheme is to provide temporary relief from payments of principal and interest on all outstanding loans. It is for all affected private sector companies and retail clients for a period of up to 6 months.
2. Dubai Economic Stimulus Package
Dubai Government has launched an AED 1.5 billion economic stimulus package for the next three months. It is also aimed to support the companies and business sectors in Dubai.
The economic stimulus package is focused on key industry sectors that are affected such as commercial trading, retail, tourism, energy, etc.
Along with the Stimulus Package, the Government of Dubai has introduced a couple of initiatives such as:
- Temporary freezing of market fees
- Reduction in customs fees on imported products sold in Dubai only,
- Cancellation of bank guarantee for customs clearance.
3. Abu Dhabi Economic Stimulus Package
Abu Dhabi Government has also launched a dynamic economic stimulus package to support and sustain the business ecosystem intact in the region.
Water and Electricity subsidy for individuals and commercial & industrial sectors, exemptions of commercial and individuals from a variety of activities and fees.
4. Additional AED 16 Billion Stimulus Package
The UAE Cabinet also approved an AED 16 billion packages to support the national economy and support business sustainability.
UAE is making all efforts to reduce the business setup cost and employee management cost to all-time low rates.
5. Dubai Free zones Economic Stimulus Package
The Dubai Free zone Council has announced a set of initiative in the form of the following:
- Deferring of rent payments for 6 months
- Facilitating installments for payments
- Refund of security deposits and guarantees
- Canceling fines for companies and individuals
- Permitting temporary contracts for free movement of staff between companies operating in the free zones
- Relief Packages for Bank Customers & SMEs
6. Economic Relief Initiatives from the UAE Banks
Banks in Dubai have also offered relief packages for businesses and individuals. Initiatives such as the following are being approved by the major banks in the UAE
- Lowering of credit card cash advance charges
- Zero percent easy payment plans on school fee
- Deferring of 3-month installment without fees for finically impacted individuals
- Many more cash-saving schemes and elimination of additional charges
Business Readiness to achieve Long Term Sustainability
Businesses in the UAE must have a preparedness plan to tackle the hurdles ahead. A clear contingency plan including all main aspects is a pre-requisite for the business to scale up and be back on track.
All core functions of the business must be re-structured to re-start the business processes effectively.
Businesses must be growing lean and all redundant workflows and processes must be eliminated.
The core business process must be on the focus and exploring innovative ways.
Enhanced Product Quality, Exceptional Customer Experience are Must-Haves
Delivering services or products with minimal cost, enhanced quality, and improved customer experience will be the key to win in today’s dynamic world.
Business operations, employee engagement, supply chain, finance, etc., must be closely monitored and analyzed.
It will help in lowering operational costs, reduce overheads, and enhance productivity.
Achieving long term sustainability is crucial for businesses today and to get there a clear business continuity strategy must be in place for all the businesses.
To know more about the Company Formation in UAE, talk to our expert team right away!
Contact: Aurion Business Consultant