Abu Dhabi Economic Stimulus Package

Abu Dhabi Economic Stimulus Package

By the year 2018, the government of Abu Dhabi initiated Ghadan 21 and allocated funds of AED 50 billion to be spent over the next three years that would help kick-start the Emirate’s economy. The initiative has been categorized into four themes, namely; business & investment, Society, Knowledge & Innovation and Lifestyle.

On 16th March 2020, the Abu Dhabi Executive Council (ADEC) launched several initiatives under “Ghadan 21” that included a series of stimulus packages to boost small and medium enterprises (SMEs) and ease the availability of loans to local companies. The initiatives also included several other packages including water/electricity subsidies for the citizens & businesses (commercial & industrial) and exemption of road tolls for vehicles till the end of 2020.

Economic Stimulus Package – Initiatives

  • Allocating AED 5 billion to subsidise water and electricity for citizens, and commercial and industrial activities
  • Subsidising electricity connection fees for start-ups until the end of this year
  • Exempting all commercial and industrial activities from Tawtheeq fees this year
  • Allocating AED 3 billion 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 AED 1 billion to establish a market maker fund, to enhance liquidity and sustain the balance between supply and demand for stocks
  • Settling all approved government payables & invoices within 15 working days
  • Suspending bid bonds and exempting start-ups of performance guarantees for projects up to AED 50 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

Investment Opportunities – Abu Dhabi

The recent developments in Abu Dhabi continue to show the government’s commitment to further developing, growing and easing the way business is conducted in the Emirates. These initiatives will further improve its attractiveness among international investors and provide opportunities for both Abu Dhabi and UAE to move things forward.

Research Konnection is a market research company in Dubai that assists local and international companies to setup or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market ResearchFeasibility Studies and Business Plan Developments. Feel free to reach out to us on hello@researchkonnection.com

Author: Waqas Siddiqui
I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at waqas@researchkonnection.com for research inquiries.