Three of Abu Dhabi’s main government agencies held virtual meetings with investors and business owners from the hospitality, retail and contracting segments to better understand the challenges faced by these industries due to Covid-19.
The Abu Dhabi Department of Economic Development, the Department of Culture and Tourism and the Department of Municipalities and Transport held briefings with investors as part of the emirate’s efforts to support the private sector amid the pandemic.
Abu Dhabi's Department of Economic Development's chairman Mohammed Ali Al Shorafa, the Department of Culture and Tourism chairman Mohamed Khalifa Al Mubarak and Department of Municipalities and Transport head Falah Al Ahbabi all participated in the talks with investors.
"I am sure that we can overcome the challenges being faced by businessmen and investors as a result of the Covid-19 crisis—transforming these challenges into opportunities that will expand the horizons of true cooperation and partnership between us," Mr Al Shorafa said.
The first set of meetings focused on the hospitality sector and ways to ensure operations get back on track by the year-end. The second meeting was held with retail businesses and examined the impact of Covid-19 and its containment measures on the sector. Investors brought up the knock-on effect that disruption in warehousing and storage business had on their revenues with the officials.
Mr Al Mubarak pointed out that the incentives package offered by the government to hospitality businesses provides key advantages and benefits for specific economic sectors like tourism, which is considered as one of the growth engines of Abu Dhabi’s economy.
Meanwhile the business owners within the contracting sector requested support in helping them meet their banking commitments. They urged officials to keep regulations governing this sector fixed instead of facing multiple changes during the period and also requested support in ensuring construction workers remained safe by helping them isolate suspected cases of Covid-19.
“The challenges faced by the contracting sector and their companies in these circumstances makes us more adamant to increase our cooperation and efforts with all strategic partners concerned to reach immediate and more effective solutions and presenting proposals for quick and more impactful measures that revitalise the sector in the short term, while contributing to enhancing investor confidence in the national economy in the long run,” said Mr Al Ahbabi.
These meetings follow a stimulus package rolled out by the Abu Dhabi government on March 16 to boost the economy and support businesses in the emirate.
The 16-point agenda allocates Dh5 billion to subsidising water and electricity for citizens and commercial and industrial activities. It also reduces electricity connection fees for start-ups until the end of this year and exempts all commercial and industrial activities from Tawtheeq fees in 2020.
The government has also allocated Dh3bn through an SME credit guarantee scheme, dedicated Dh1bn to establish a market maker fund to stabilise stock prices and issued directives to settle all approved government payables and invoices within 15 working days.
The Department for Economic Development has also waived Dh246 million in penalties – a move that will benefit about 72,200 private companies, it said.
