Businesses affected by the recent storms in Dubai could be eligible to receive financial assistance through new interest-free loans. Emiratis who own small and medium-sized enterprises (SMEs) will also be eligible to receive grace and postponement periods for existing loans.
Eligible companies will obtain interest-free loans of a maximum of Dh300,000 ($81,688) with a grace period of six to 12 months, to repair or replace damaged properties. Moreover, the new initiative provides interest-free business loans for material damages and postpones loan repayments for affected members of Dubai SME.
The initiative was launched by Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME), a subsidiary of the Dubai Department of Economy and Tourism (DET).
“We are collaborating with our partners to explore ways of mitigating the effects of the recent weather conditions that have impacted the country, facilitating a swift recovery,” said Abdul Al Janahi. CEO of Dubai SME.
The launch of this initiative aims to enhance further recovery efforts to support and stabilise businesses affected by the adverse weather conditions experienced, named the worst rains recorded in the emirate since records began.
Last week, the UAE Central Bank also announced that local banks may defer personal loan instalments for six months for residents affected by the rains. The “deferral shall be without imposing additional fees, interest or profit” charges, or otherwise increase the principal amount of the loan”, the regulator said.
