Financial Measures in Dubai to Reduce the Effects of Coronavirus

March 27, 2020

Emirate introduced powerful measures to protect citizens and businesses from exceptional circumstances brought by Covid-19. Dubai Government developed 17 initiatives focused to ease the financial circumstances for individuals and commercial sector to substantially improve the life and business conditions caused by covid19 outbreak.

The stimulus measures that are introduced with immediate effect will be valid for the next three months. Following this period, the impact of the measures on the economic situation will be reviewed.

Key relief points include:

• Payment deferral of 3 months for retail loans of affected customers with zero charges and interest waived for the deferral period
• Interest-free installment offers on loans for school tuition until June 30
•  A payment deferral of one month will be available on request for all customers holding personal loans, auto loans and / or mortgage loans with no service charge
• Reduction in bank charges by 50 per cent on early settlement of loans for eligible customers (until June 30) and other.

For SME customers, the banks will defer up to three months of installments for all loan types. The banks are also working with all customers to ascertain the COVID-19 impact on their cash flows, to provide further support in loan restructuring or deferment. The world is going through difficult times but Dubai has navigated challenges successfully.