Dubai has announced an initiative to provide interest-free loans to support small businesses affected by the recent adverse weather after the United Arab Emirates this month witnessed its worst rains since records began.
The Mohammed Bin Rashid Establishment for the Development of Small and Medium Enterprises, known as Dubai SME, will also offer grace and deferment periods for existing loans taken out by Emiratis who own small and medium-sized businesses, the entity said on Saturday.
The special incentive for Dubai SME members allows eligible businesses to obtain interest-free loans of a maximum of Dh300,000 ($81,688) with a grace period of six to 12 months, to repair or replace damaged properties.
“We are collaborating with our partners to explore ways to mitigate the effects of the recent weather conditions that have impacted the country, facilitating a rapid recovery,” said Abdul Al Janahi, CEO of Dubai SME, a subsidiary of the Department of Economy and Finance of Dubai. Tourism.
The measure will contribute to “relieve the financial burden and cover the costs of repair and replacement operations to resume business as quickly as possible and reduce the period of interruption of regular operations, in addition to supporting the local economy, considering the important role that SMEs perform. in revitalizing and developing Dubai’s economy,” Dubai SME said.
Affected Dubai SMEs can provide the required documents to the designated relief financing committee of the Mohammed Bin Rashid Fund for SMEs.
The big storms in the United Arab Emirates caused flooding in several areas, damaged properties and disrupted daily activities. There has been a coordinated response from various departments in the UAE to support the recovery.
Last week, the UAE Central Bank issued a notice to all banks and finance companies to allow a six-month deferral in payment of personal and car loans for customers affected by the storms.
The “deferral will be made without imposing additional fees, interest or profit charges, or otherwise increasing the principal amount of the loan,” the regulator said.
The Central Bank also confirmed that damage to vehicles and homes due to last week’s record storms they would be covered if there is a comprehensive insurance policy against loss and damage.
Updated: April 28, 2024, 5:06 am