UAE government increases stimulus to Dh126bn

Sheikh Mohammed bin Rashid says measures will be taken to reduce the cost of business and support small companies

An abra driver wears protective gloves and a face mask in Dubai. Getty Images

A sign showing how to prevent infection is seen in Dubai. Getty Images

One of the staff member stands inside a Dhow Cruise which is closed as a preventive measure in Deira. Pawan Singh / The National

An empty restaurant is pictured outside Dubai Mall. Reuters

A picture taken on March 16, 2020 shows Dubai's Burj Khalifa lit up in the colours of the Italian flag and "We are with you" message as a sign of solidarity with Italy. AFP

A view shows the Dubai mall almost empty of customers, as precaution amid the outbreak of coronavirus, in Dubai. Reuters

An empty beach in Dubai. EPA

People walk past shops in Dubai's Deira Souk on on March 15, 2020. AFP

Workers clean outside the Louvre Abu Dhabi on March 15, 2020. EPA

A man wearing a protective mask walks down the street in Dubai on March 16, 2020. AFP

A near-empty tourist boat crosses Dubai's marina on March 16, 2020. AFP

A man wears a protective mask at the shopping mall in Dubai. Reuters

A school gate is closed with a chain and lock in Dubai. AFP

Commuters wear protective masks on the metro in Dubai, March 12. Reuters

An attendant wears a protective face mask while using a fuel pump at an Eppco gas station in Dubai on March 10. Bloomberg

A member of cleaning staff disinfects a seat screen of an Emirates Airbus A380 on March 5. Reuters

A worker with a face mask disembarks from a bus at the Abu Dhabi Main Bus Terminal area on March 5. Victor Besa / The National

Commuters, some wearing protective face masks, ride the metro in Dubai on March 5. Bloomberg

A trader walks by beneath a stock display board at the Dubai Stock Exchange in the UAE on March 8. AFP

A traveller wears a mask at the Dubai International Airport on March 8. Reuters

A commuter, wearing a protective face mask, speaks on a mobile phone while riding the metro in Dubai, March 5. Bloomberg

A commuter, wearing a protective face mask, walks in Downtown Dubai on March 5. Bloomberg

Commuters, wearing protective face masks, walk in downtown Dubai, on March 5. Bloomberg

Commuters, wearing protective face masks, walk after exiting a metro station in downtown Dubai, March 5. Bloomberg

A commuter, wearing protective face mask, walks through a metro station in downtown Dubai on March 5. Bloomberg

Commuters wearing protective face masks use smartphones on the metro in Dubai on March 5. Bloomberg

UAE landmarks were lit up for in solidarity with China’s efforts to contain coronavirus, Covid-19 in March. Bilateral trade between the two countries is set to accelerate, according to officials. Wam

The UAE government increased its stimulus package to Dh126 billion ($34bn) on Sunday to help offset the impact of the coronavirus, Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai announced on Twitter.

"We approved an additional support package of Dh16bn," Sheikh Mohammed said. "We approved new measures to cut the cost of doing business, support small businesses and accelerate major infrastructure projects."

In addition to being a global pandemic, the coronavirus is "an economic virus, a political virus and we say to countries globally this is the time for unity, cooperation and solidarity to fight the most important enemy of humanity," Sheikh Mohammed added.

"All differences are dwarfed in front of this new challenge and the world can overcome it faster if the strong stand with the weak and the rich with the poor."

The increase in stimulus follows a slew of other initiatives and and aid rolled out by the government and private sector this month.

On Saturday, banks in Dubai said they will offer their customers and clients loan repayment holidays and reduced charges to help soften the impact of Covid-19 on their finances and relieve economic pressure.

The pandemic is the greatest challenge to the global economy since the 2008 financial crisis and has wiped at least $17 trillion (Dh62.44tn) from stock markets worldwide. It has disrupted global supply chains, brought the travel and tourism sector almost to a grinding halt.

Emirates NBD, the biggest bank by assets in Dubai along with UAE’s largest Sharia-compliant lender Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial Bank of Dubai have announced a series of support measures that will remain in effect for three months starting April 1, the Dubai government media office said on Saturday.

The measures follow the Central Bank of the UAE's Dh100bn stimulus unveiled earlier this month, and separate packages from the Abu Dhabi and Dubai government that entail reduced or exempted fees for a range of services. The UAE, the second-biggest Arab economy, joined governments and central banks around the world in announcing emergency economic packages and safety measures, to contain the spread of the coronavirus and soften the impact on their economies.