Crown Prince Hamdan Bin Mohammed announced on Wednesday that Dubai has agreed a fifth economic stimulus package to support businesses hit by the ongoing coronavirus pandemic.
In a tweet, he said an extra AED317 million ($86.3 million) was being allocated to bring the total stimulus package to AED7.1 billion.
“We continue to implement all necessary to enhance the ability of all sectors to overcome the effects of the global crisis,” Sheikh Hamdan tweeted.
He added: “Despite the challenges posed by the pandemic in the world, our economic situation is constantly improving, and we have the ingredients that enhance our ability to achieve leadership, and this was reflected in the rapid pace of recovery of various sectors and economic activities.”
The new package also extends the freeze on fees charged for ticket sales, issuing permits, and other government fees imposed on entertainment and business events.
In the tourism, entertainment, and events sector, the exemption from the fees charged for postponement and cancellation of recreational and sports events and activities, including conferences and exhibitions, has been extended.
The announcement came on the same day that the UAE’s Ministry of Health and Prevention (MoHAP) reported 2,067 coronavirus cases in the past 24 hours, a new daily high, bringing the total number of recorded cases in the UAE to 218,766.
The ministry said that it conducted 156,520 additional Covid-19 tests, adding that a further four people have died due to Covid-19 complications, bringing the total number of deaths in the country to 689.
MoHAP also noted that an additional 2,199 individuals had fully recovered from Covid-19, bringing the total number of recoveries to 195,520.
The last stimulus extension was announced in October when Dubai added AED500 million to the package which consists of rent breaks and the elimination of government fees and fines for some businesses.
Last month, Dubai Statistics Office said the economy, the Middle East’s business hub, will likely contract 6.2 percent in 2020.
Gross domestic product fell 10.8 percent in the first half of the year, estimates showed. The economy is heavily dependent on tourism and retail, sectors especially hard hit by the pandemic.
On Tuesday, the latest IHS Markit purchasing managers’ index survey for the UAE rose to 51.2 in December, the highest in 16 months.
The rate of growth was “only mild” despite a surge in output and client demand while job shedding continued at an accelerated pace as firms cut their workforce during every month in 2020.
New business rose at a more robust pace and new export orders grew at the strongest rate in 15 months.
The outlook for the next 12 months picked up slightly but most firms expected activity to remain flat in 2021.
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