Dubai Holding and Meraas set up Dh1bn relief fund to mitigate impact of coronavirus on units

Some companies within their portfolio are Jumeirah Group, Dubai Properties, Boxpark and LaMer

Meraas recently launched a relief fund in partnership with Dubai Holding for businesses hit by the virus outbreak. Leslie Pableo / The National

Dubai Holding and Meraas launched a Dh1 billion relief package to support businesses and customers across their portfolio of companies affected by the coronavirus.

The economic package is designed to partially alleviate the burdens encumbered by some of the businesses or people within the Dubai Holding and Meraas umbrella, the companies said on Tuesday.

“We have directed our teams at Dubai Holding and Meraas to ensure that we provide relief to those impacted customers whether they are companies or individuals by the outbreak of Covid-19. We believe that it is our social and economic responsibility to stand with affected partners during such unprecedented times,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Holding and Meraas.

The companies have established task forces to look at the specific requirements on a case-by-case basis to ensure that support is made available.

Dubai Holding owns hospitality company Jumierah Group and developer Dubai Properties. It also has interests in retail, media and freezones. Meraas operates a number of retail destinations in Dubai such as Boxpark, La Mer and Last Exit, and also has interests in real estate.

The latest move by the entity comes as central banks and governments worldwide take monetary measures and roll out stimulus packages to shore up  economies that have been hit by the disruption to global trade and freedom of movement by the pandemic. Countries have imposed restrictions on movement or have locked down areas to contain the coronavirus.

The outbreak is the biggest challenge to the global economy since the 2008 financial crisis and has wiped at least $17 trillion from stock markets worldwide. Global supply chains, tourism and aviation have come to a virtual standstill and plunging oil prices have added to the pressure.

The Central Bank of UAE rolled out a Dh100bn stimulus package this week to offset the impact of coronavirus. As part of this scheme, the central bank will provide Dh50bn through collateralised loans at zero cost to all banks operating in the country.

Both Abu Dhabi and Dubai also have revealed additional stimulus measures to ease the costs for businesses that have been hit by the virus.