- New Set of Measures Aimed at Providing Relief to Businesses Facing Operational Challenges
Abu Dhabi Ports announced major initiatives to address concerns of its customers across its industrial and economic zone subsidiaries in these uncertain times.
The relief package includes several measures for existing customers, including a three-month rent deferment for Q2, a freeze on late payment penalties and an exemption from Tawtheeq fees.
The relief package also includes measures for new investors, including a waiving of applications fees, a 25 per cent reduction in land lease rates for the first year, an exemption on Tawtheeq fees and a relinquishing of land fixing fees.
The measures are part of Abu Dhabi Ports’ relief effort for investors and customers in response to the global economic slowdown brought on by the coronavirus pandemic.
Captain Mohamed Juma Al Shamisi, Abu Dhabi Ports Group CEO said: “In line with the Government’s effort to extend relief to businesses during these exceptional economic circumstances, Abu Dhabi Ports is taking necessary steps to help our industrial and economic zone customers overcome the current challenges brought on by the spread of coronavirus.
“Supporting customers in maintaining their competitive advantage is at the core of Abu Dhabi Ports’ decision making. The steps we have announced today reflect our commitment to enhancing the growth and stability of our customers and tenants in line with the government directives.
“We remain united and resolute in facing our difficulties together, confident in the belief that we will emerge from this crisis better and stronger.”
The relief measures come on the heels of a 25% waiver on rentals for new customers at Khalifa Industrial Zone Abu Dhabi (KIZAD).
Other benefits under the government relief package include exemptions until the end of the year on commercial real estate registration, subsidised utilities for commercial and industrial activities (including payment of natural gas bills, based on actual consumption for a 6 months period), a AED 3 billion allocation for SME’s credit guarantee programme, waiver of performance guarantees of up to AED 50 million for start-ups, a new committee to review lending options for local companies, and waiver of industrial and commercial penalties.
This is not the first time the Abu Dhabi Ports subsidiary, KIZAD has implemented sweeping, business-friendly measures designed to stimulate investment and enhance the competitive advantage for its customers.
In early 2019, Abu Dhabi Ports implemented an electricity tariff incentive programme (ETIP) introduced by the Industrial Development Board of the Abu Dhabi Department of Economic Development. This programme saw a marked reduction in energy prices for the most productive companies operating in KIZAD. Under the terms of the ETIP programme, eligible industrial companies can significantly reduce their expenditure on energy in exchange for their contribution to the economy.