A new initiative to support businesses affected by the UAE’s recent adverse weather was announced on Saturday.
The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME), a subsidiary of Dubai Department of Economy and Tourism (DET), will provide financial assistance through new interest-free loans, as well as grace and postponement periods for existing loans taken by Emiratis who own small and medium-sized enterprises (SMEs).
The initiative is aimed at further enhancing recovery efforts that are underway to support and stabilise businesses affected by the adverse weather conditions experienced in the UAE recently.
The launch of this initiative is in response to the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to address the consequences of the unprecedented rainfall in the UAE.
Interest-free initiative
The special incentive for Dubai SME members allows eligible companies to obtain interest-free loans of a maximum of AED300,000 with a grace period of 6 to 12 months, to repair or replace damaged properties necessary for the smooth functioning of their respective businesses.
Furthermore, the new initiative provides interest-free business loans for material damages, and postpones loan repayments by affected business owners who are members of Dubai SME. This contributes to alleviating the financial burden and covering the costs of repair and replacement operations to resume business as quickly as possible and reduce the period of disruption to regular operations, as well as supporting the local economy, considering the significant role SMEs play in revitalising and developing Dubai’s economy.
Central Bank extends relief
Earlier this week, the UAE Central Bank issued a notice to all banks and insurance companies to allow the deferral of repayment of instalments of personal and car loans for a period of six months for customers affected by the recent weather conditions.
The deferral shall be without additional fees, interest or profits, or increase of the principal amount of the loan.
The Central Bank also confirmed that damages to vehicles and homes resulting from the heavy rains are covered by insurance if there is an insurance policy against loss and damage or what is normally referred to as “comprehensive insurance”. The insurance companies shall be considered responsible for indemnification.
The Central Bank further added that the same applied to homes as well. In that, owners of real estate, whether homes or buildings covered by insurance, are entitled to have their property repaired from damages caused by the recent rains and weather conditions.
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