DUBAI, 6th July, 2020 (WAM) — H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, has issued directives to exempt business tenants of Dubai Developments Group properties in the emirate, including small firms and entrepreneurs, from paying rents for periods ranging from three to six months.
The relief package worth AED200 million is an initiative from H.H. Sheikh Hamdan bin Rashid aimed at supporting the economy as well as the entrepreneurial and real estate sectors. The gesture is aimed at mitigating the financial pressures faced by tenants due to the novel coronavirus, COVID-19, pandemic and its repercussions on the global economy.
Government officials, private sector representatives and business leaders praised H.H. Sheikh Hamdan bin Rashid’s announcement which contributes to the government’s efforts to accelerate economic growth. The initiative also supports the real estate sector in sustaining its growth momentum and maintaining its investment attractiveness.
The beneficiaries of this initiative expressed their gratitude and appreciation to Sheikh Hamdan bin Rashid for his support, saying this will have a positive impact by enhancing the stability of entrepreneurs and easing the economic and social pressures resulting from the pandemic. This gesture also encourages property owners to fulfill their social responsibilities and play a role in alleviating the economic burdens faced by tenants in the current circumstances.
Sultan Butti bin Mejren, Director General, Dubai Land Department, said the generous gesture reflects Sheikh Hamdan bin Rashid Al Maktoum’s humanitarian outlook and keenness to accelerate the recovery of the real estate sector that is one of the mainstays of the national economy. Furthermore, the initiative helps to consolidate the stability and consistency of the real estate market in the UAE, which has demonstrated strength and cohesiveness despite the prevailing conditions. Such initiatives will also serve to strengthen the relationship between landlords and tenants, Bin Mejren said.
The Director General of the Dubai Land Department praised the efforts exerted by the government, private sector institutions and individuals to support various segments of the population who faced challenges arising from the global pandemic. Stimulus and incentive packages played a key role in ameliorating the economic situation and stabilising the real estate market, he said.
Paying tribute to the initiative, Eng. Essa Al Maidoor, Director General of the Dubai Developments Group, said it reflects Sheikh Hamdan’s keenness to extend a helping hand to segments of society that have borne the brunt of the repercussions of the global crisis. The AED200 million relief package will exempt tenants from rents for periods ranging from 3-6 months, according to the type of their business activity. An estimated 1,500 business enterprises will benefit from the initiative. The rent exemptions will contribute to enhancing their investment and financial solidity of the businesses, the financial stability of their employees, numbering over 10,000, as well as the wellbeing of their families.