Coronavirus: Dubai’s family-owned businesses make suggestions on economy

Dubai: The representatives of family-owned businesses in Dubai have submitted a host of suggestions to enhance the future of the economy in view of challenges imposed by the spread of the global coronavirus pandemic.

The suggestions were submitted to Sheikh Ahmed Bin Saeed Al Maktoum, commissioner General of the ‘Dubai Economic Track’.

In a letter addressed to Sheikh Ahmed, the representatives referred to the meeting, which was held on April 21, to review Dubai’s economic outlook in the near future in light of the repercussions of COVID-19.

They highlighted the significant positive impact on increasing the private sector’s confidence in the government’s measures and decisions taken to maintain Dubai’s resilient economy and cope with the current crisis.

The representatives of Dubai’s family-owned companies proposed the setting up of an extensive economic council or a committee consisting of businessmen and government decision makers to develop economic plans for the upcoming period.

They also suggested an ongoing dialogue between the government and the private sector as essential to keep updated on the developments in view of the current exceptional circumstances.

The current situation makes it necessary for the government, private sector and the society to work together, hand in hand, to overcome challenges and emerge stronger.

Among the suggestions is also the importance of enhancing cash flow by accelerating payments from government agencies and their subsidiaries, to contractors, beneficiaries and suppliers.

Other suggestions include the need to help companies repatriate surplus labourers to their home countries, and finance the costs of re-sending them. The costs of return tickets shall be paid back in instalments paid across 12-24 months, especially for small and medium-sized businesses.

They also proposed the elimination or reduction of fees for issuance and renewal of commercial licences until the end of 2020. Other suggestions include freezing the implementation of the 2.5 per cent market fee on all establishments operating in the emirate until the end of 2020.

The representatives also suggested reducing customs duties by 50 per cent until the end of 2020, and reducing electricity, water and service bills by 50 per cent.

They also recommended reducing VAT to 2 per cent or postponing its payment until the end of 2020, eliminating all the taxes incurred to improve the liquidity situation of companies.

Other suggestions include reducing residency visa fees and extending all expired and cancelled expired visas for investors and their families until the end of 2020, and cancelling all fines.

Cancelling all local and federal government fines and violations until the end of 2020 is also recommended.

For the retail sector, suggestions included replacing rent allowances by sales rates until the end of 2020, and allowing the cancellation of commercial leases without any permissive conditions or fines on leased companies.

The family business community also suggest assisting affected companies by a percentage of employees’ wages or a salary cap for a specified period of time.

They also suggest considering granting state-subsidised loans with nominal interest rates to companies operating in the affected sectors, particularly SMEs.