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The outbreak of the coronavirus has led to the complete shut down of many businesses worldwide, and that has affected their stability and their chances of survival through this pandemic. The small and the medium businesses are the ones that have been deeply affected by the spread of the virus that led to the lockdown in most of the countries.
This unprecedented and unforeseen challenge has rendered the small business owners to think of the ways to help their business to sustain through this tragic and challenging times. The Central Bank of UAE along with other banks and with the economic stimulus packages that have been put into effect by the crown prince of Dubai are all working together to provide some help and support to the citizens and the businesses of the United Arab Emirates.
The business owners if they have taken loans from the banks, can apply for the loan holidays, which can be given for up to three months depending on their current financial situation. The loan holidays have come as a relief to a lot of the citizens of UAE who are fighting to survive through these hard times. The loan holidays can be applied for through a letter to the banks stating the reason and the financial conditions of your business so that the bank can provide you with the best help and support possible.
Economic stimulus introduced in Dubai:-
The crown prince of Dubai, the central bank of UAE along with other institutions in the country are providing relief packages to the citizens to sustain their cost of living and the cost of doing their businesses in this pandemic. There are several different initiatives that have been introduced for the different commercial sectors such as tourism, retail, energy sector, external trade, and other related commercial sectors to lessen the burden on the business owners. The initiatives introduced in the commercial sector account for the 2.5% market fee freeze, refund of 20% of the customs fees, cancellation of renewing license fees, refund of the cash used for the clearance of the customs, etc. have been put into effect to absorb the shock that has been directed at the business owners’ by the pandemic.
The tourism sector also experienced the cancellation of the fee for the postponement and the cancellation of various tourism and sports events, municipality fees reduction from 7% to 3.5% for the hotels and the freeze on the fees for the ticket sales, permit issuance, hotel ratings, etc. The Dubai cabinet has been trying to reduce the cost of living and the cost of doing business in these crucial times so that the citizens of the country could live a bit comfortably with the financial and economic assistance provided to them.
Dubai ministries come into action to support the citizens
The UAE cabinet has launched an initiative that focuses on the reduction of the water and the electricity bills for the commercial shops, malls, hotels, etc. by 20%. The UAE Ministry of economy has offered the citizens of the country a discount of up to 25% on the activities related to the import and export activities, commercial activities, business-related activities, etc. to support them in this temporary recession.
In addition to the availing of the above facilities that are being offered by the banks and the other institution in the country, there are a few other things that need to be kept in mind while fighting for the survival of the business through this pandemic.
- Digitalize your business: This is an extremely important step for any business to thrive through the recession that has been exposed due to the outbreak of the coronavirus. Increasing the digital presence of your business will pave the way for it to reach the people that are not restricted to any distance. This will increase the engagement of the customers in your business and will certainly aid you to only sustain your business but will also provide you with an opportunity to grow your business along the way.
- Collaboration and merging: You can collaborate with the other businesses to form mergers in order to survive through this pandemic. These collaborations can prove to be beneficial for your business in the long term as well.
- Prioritize: Look for the things that are integral to your business and try to cut out on the luxuries for a short period to maintain the stability and the sustainability of the business through this pandemic.
- Plan and adopt: You know what have been dawned upon you, so you need to work on planning and strategizing to make short term goals that need to be achieved in the business. This will support your business to adapt to the changed market conditions.
There is no doubt that these times are tough, but like always, businesses need to find new ways of averting the crisis and emerge unharmed from the challenges in front of them. The government is doing its bit in this matter, but small businesses also need to improvise to cope with the impact of COVID-19.