Dubai SME to offer interest-free loans to companies hit by heavy rains

Initiative will also provide postponement periods for existing loans taken by Emiratis who own small and medium enterprises

Dubai has launched a zero-interest loan initiative to aid small businesses that were affected by record-breaking rains in the UAE. AFP

Dubai has announced an initiative to provide interest-free loans to support small businesses affected by the recent adverse weather after the UAE this month witnessed its worst rains since records began.

Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development, known as Dubai SME, will also offer grace and postponement periods for existing loans taken by Emiratis who own small and medium-sized enterprises, the entity said on Saturday.

The special incentive for Dubai SME members allows eligible companies to 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.

Workers cut down a tree that was uprooted by the storm in Dubai. Pawan Singh / The National

A vehicle submerged on a waterlogged road in Dubai. Pawan Singh / The National

A fence is blown over during the storm in Dubai. Chris Whiteoak / The National

Vehicles splash through the Dubai – Abu Dhabi motorway during the heavy rain in Abu Dhabi. Pawan Singh / The National

A vehicle drives through a flooded road on a wet day in Dubai. Chris Whiteoak / The National

Two men navigate Dubai's flooded roads on a raft made from gas cylinders. Antonie Robertson / The National

Trying to keep flooding out of a business in Al Quoz, Dubai. According to some measurements, 158mm of rain fell in 24 hours. Antonie Robertson / The National

One pedestrian is still smiling despite the flooding, in Al Quoz, Dubai. Antonie Robertson / The National

Waves form in Dubai floodwaters. Nic Ridley/ The National

Dark clouds over Aldar headquarters in Al Raha, Abu Dhabi. Evelyn Lau / The National

Wrapped up for the elements in Dubai. Chris Whiteoak / The National

More storms are forecast for Dubai, with dark skies overhead. Nic Ridley/ The National

A young boy goes for a walk on a rainy day in Dubai. Chris Whiteoak / The National

Heavy rain fell for several hours in Dubai on Tuesday morning, in what forecasters said was the first wave of stormy weather. Antonie Robertson / The National

Lightning strikes in Abu Dhabi on Monday. Roy Cooper/ The National

There were large puddles in Dubai after heavy rain overnight. Antonie Robertson/The National

A cyclist travels amid clean-up efforts in Dubai. Antonie Robertson/The National

A motorist's car is stranded on a flooded Dubai road, following torrential rain. Antonie Robertson / The National

Clean-up efforts are under way in Dubai after heavy rain. Antonie Robertson/The National

Dark clouds linger over Dubai with more adverse weather forecast. Antonie Robertson/The National

Dark skies over Reem Island in Abu Dhabi. Zoya Thomas/ The National

Forecasters warned of 'hazardous weather events' until Wednesday evening. Antonie Robertson/The National

Workers clear standing water in Dubai. Antonie Robertson/The National

Drivers faced a difficult commute after heavy rain in Dubai. Antonie Robertson/The National

Clean-up efforts began in Dubai after heavy rain. Antonie Robertson/The National

“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, chief executive of Dubai SME, a subsidiary of Dubai's Department of Economy and Tourism.

The move will contribute to “alleviating the financial burden and covering the costs of repair and replacement operations to resume business as quickly as possible and reduce the period of disruption to regular operations, as well as supporting the local economy, considering the significant role SMEs play in revitalising and developing Dubai’s economy”, Dubai SME said.

Affected Dubai SME members can provide the required documents to the Mohammed Bin Rashid Fund for SMEs' designated relief financing committee.

The major storms in the UAE led to flooding in several areas, damaged properties and disrupted daily activities. There has been a co-ordinated response from various departments across the UAE to support recovery.

The UAE Central Bank last week issued a notice to all banks and finance companies to allow a six-month repayment deferment for personal and car loans for customers affected by the storms.

The “deferral shall be without imposing additional fees, interest or profit” charges, or otherwise increase the principal amount of the loan”, the regulator said.

The Central Bank also confirmed that damage to vehicles and homes due to the record-breaking storms last week would be covered if there is a comprehensive insurance policy against loss and damage.