Dubai gave the green light to a AED 1 bn package to ease financial pressure on the private sector, state news agency Wam reports. The measures will last between three and six months, and come into effect on 1 April.

A central component of the package? A three-month deferral of various government fees, along with an extension of customs data grace periods from 30 to 90 days.

Hotels will also get a deferral for 100% of sales fees and AED tourism payments.

This comes as tourism takes a hit, with hotel occupancy plunging to 16% as of 17 March, plummeting from peak-season averages of 90%. High-end restaurants and clubs are also seeing similar drops in demand, with some sending staff to sister outlets abroad.

Some hotels have also been slashing prices, cutting staff hours, and offering some incentives for guests to spend, while rumors of layoffs across the sector have started to spread.

ALSO- In another sector-specific move, art imports will be exempt from customs duties and will also be able to secure virtual tracking.

Residency permit issuance and renewal processes will also be “streamlined” as the government looks to keep attracting and retaining talent to the emirate, state news agency Wam said, without clarifying any specific measures.

The move is the latest step taken by authorities to mitigate the fallout from the regional war on the UAE’s economy, after the Central Bank of the UAE already stepped in with a package to support local lenders.

Tags: