More than 10,000 SMEs and over 1,500 larger private sector companies have benefitted from the UAE’s Targeted Economic Support Scheme (TESS) launched earlier this year by the Central Bank of the UAE to support businesses impacted by the global coronavirus pandemic.
According to latest statistics, the loan deferment scheme has also benefitted over 310,000 clients of personal banking services.
The TESS could also be expanded, state news agency WAM reported, citing a report of a board meeting held by the directors of the Central Bank of the UAE which said: “The board recommended the reassessment of related developments in March and April 2021 and discussed the need to expand TESS as required”.
The scheme aims to reduce the effects of Covid-19 by easing burdens related to financing and liquidity, reinforcing lending capacities, and addressing operational challenges.
The package of support was launched in March as part of an AED100 billion ($27 billion) scheme, which included the AED50 billion liquidity relief tool through banks to eligible customers who wish to apply for a deferment until December 31.
The TESS update comes as business conditions deteriorated in the UAE in September amid further job losses and concerns over renewed lockdowns.
Non-oil private sector activity in the UAE fell below the threshold of 50 that separates growth from contraction for the first time since August, according to latest research from IHS Markit.
The UAE’s Purchasing Managers’ Index (PMI) reading fell to 49.5 from 51 in the previous month
The outlook among UAE businesses for the next 12 months was also at a record low, with fears over the persistence of the pandemic hurting future activity.
Last month, Dubai said it plans to offer AED500 million of aid for businesses hit by the coronavirus crisis.
Crown Prince Hamdan Bin Mohammed said the package, which will consist of rent breaks and the elimination of government fees and fines for some businesses, will bring total government support to AED6.8 billion.
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