In line with the emirates plans to support business units that are worst-hit by the pandemic, close to 8,000 business units in Tourism and Hospitality section will be provided with a refund of 20 percent of their annual rental value, $270 million.
The eligible business units will receive a refund of $54.4 million as part of the economic stimulus package unveiled by the Abu Dhabi government within the “Ghadan 21” program to decrease the influence of the coronavirus pandemic on business activities, stated Khaled Mubarak Bani Zama, Director of the Industrial Development at the Abu Dhabi Department of Economic Development.
“The refunding of 20 percent of the value of helps support the private sector and enhance confidence in the emirate’s investment environment, thus ensuring the sustainability of businesses in view of the current exceptional conditions facing the world at large,” Bani Zama answered.
Earlier in May, the department began a strategic digital service that will allow restaurants, tourism and entertainment facilities within the emirate to apply for a 20 percent refund on the annual rental value of their commercial property leases.
The department accepted 220 applications from restaurants, tourism and entertainment facilities who applied for a 20 percent refund on the annual rental value of their commercial property leases, Mr. Bani Zami stated.
The Abu Dhabi government emphasized that the refund of 20 percent of the total rental value given by investors who started their lease from September 2019 or renewed their contracts during the period from April 1 2020 until the end of September 2020.
The move is intended to further add and improve morale in the emirate’s business environment. The decision includes all facilities practicing activities of restaurants, cafeterias, tourism and entertainment.