ADGM rolls out new measures to help coronavirus-affected companies

The new measures include 100 per cent waivers on a number of fees and rent postponements for ADGM Square tenants

Abu Dhabi is investing in start ups to boost innovation in the capital. Alamy

Abu Dhabi Global Market introduced new measures that will run for up to 12 months to help mitigate the impact of coronavirus on businesses operating in the financial free zone on Al Maryah Island.

The measures include the postponement of rental payments and service charges for office tenants within ADGM Square for 2020.

They also include 100 per cent fee waivers on the renewal of commercial licences, business activity and data protection documents until March 25, 2021.

There will be full waivers of fees on the issuance and renewal of temporary work permits, as well as for applications filed late.

"These measures will complement the current robust packages from the UAE authorities and Abu Dhabi government, and bolster the nation's economic strategy," Ahmed Al Sayegh, Minister of State and chairman of ADGM, said on Wednesday.

“The ADGM support measures are effective immediately and many are applicable until late March 2021.

“We will continue to work closely with everyone to weather this storm together and become a stronger and more resilient financial and business marketplace.”

Other steps include waivers on annual fees paid by fund managers until December 31, 2020, and a 100 per cent refund for any annual fund fees already paid by entities regulated by the ADGM's Financial Services Regulatory Authority.

ADGM also announced a 50 per cent refund of supervision fees already paid by FSRA-regulated entities for 2020 and a 50 per cent waiver on any such fees due until the end of the year.

The measures follow a stimulus package rolled out by the Abu Dhabi government on March 16 to boost the economy and support businesses in the emirate.

The 16-point agenda unveiled by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, allocates Dh5 billion to subsidise water and electricity for citizens and for commercial and industrial activities.

It also reduces electricity connection fees for start-ups until the end of this year and exempts all commercial and industrial activities from paying Tawtheeq fees in 2020.

The government has also allocated Dh3bn for the SME credit guarantee scheme, dedicated Dh1bn to establish a market-maker fund to stabilise stock markets and issued directives to settle all approved government payables and invoices within 15 working days.