COVID-19 response: Ras Al Khaimah launches integrated stimulus package to support its economy

Dubai: The Government of Ras Al Khaimah on Saturday announced the launch of a comprehensive integrated stimulus and incentive package to support the Emirate's economy.

Introduced in line with the ongoing efforts announced by the UAE aimed at easing the financial burden in the Emirate during the Covid-19 situation, the package forms part of Ras Al Khaimah’s continuous efforts to help private-sector companies face the challenges presented by the coronavirus pandemic.

Covering every sector involved in economic activities, including tourism, government services, environment and SMEs, the package was developed in cooperation with all concerned entities, with each entity creating the measurements that suit the nature of the companies they deal with. This ensures that all companies and organizations benefit from the incentives, especially SMEs, which make up the largest number of companies operating in Ras Al Khaimah and which are the most affected by the current situation.

The package of initiatives highlights the coordinated approach taken by local government entities and free zones in Ras Al Khaimah to alleviate hardship, including the Municipality Department, Department of Economic Development, Ras Al Khaimah Economic Zone (RAKEZ), Ras Al Khaimah Chamber of Commerce, Ras Al Khaimah Tourism Development Authority, the Environment Protection and Development Authority and the General Resources Authority in Ras Al Khaimah.

All the bodies have agreed on three levels of support: payment exemptions, postponement of fees and the provision of consultancy and assistance. One of the most notable incentives introduced by RAK government agencies is a 25 per cent exemption on fees for renewing commercial licenses that were closed as per circulars issued by government agencies, as well as for any sectors affected by the crisis, provided they meet the terms and conditions set by the Department of Economic Development in Ras Al Khaimah.

“We are eager to implement the directions of the prudent leadership, which aims to ensure ongoing support to companies operating across Ras Al Khaimah. This stimulus package forms part of our commitment to enhancing partnership between the public and private sectors, which is a central pillar in empowering and developing our national economy in the United Arab Emirates and in Ras Al Khaimah,” said Dr. Mohamed Abdullatif Khalifa, Secretary General of the Executive Council of the Emirate of Ras Al Khaimah.

Extending business license renewal

The measures taken by the Department of Economic Development in Ras Al Khaimah include extending the license renewal period for 60 days from the date of expiry. In addition, business establishments will be allowed to operate around the clock for three months and be exempt from marketing permit fees for two months during this year, in case the current situation ends. Hotels, resorts and all tourism activities will also be exempt from commercial registration during the closing period.

Rent waivers, reduced health card fees

Ras Al Khaimah Municipality Department has exempted tenants in markets (owned by the Municipality) from rental fees for three months, including barbershops, beauty salons and shops in Nakheel market. It has also exempted advertising companies from rental fees for three months and companies from the monthly installment fees of municipal rental documentation for the commercial sector for one year from the license renewal date. It has also waived permit fees for outdoor area occupancy for roads and public facilities and reduced fees for issuing health insurance cards.

50 per cent discount on Hemaya fines

The General Resources Authority (GRA) has announced the exemption of the fees on commercial vehicles (for investors) until October 1, 2020. Additionally, the GRA is availing a 50 per cent discount of ‘Hemaya’ fines against different establishments and service providers until October 1, 2020, provided that the violations occurred prior to this announcement. It has also offered small businesses, such as grocers, to place their ads on its website free of charge. The CCTV service providers use this website to renew or issue their licenses, and such a proposition will contribute in marketing for their services.

Support for 15,000 companies and 25 per cent discount on new residence visas

Ras Al Khaimah Economic Zone (RAKEZ) has launched a package of customizable incentives, aimed at supporting more than 15,000 companies operating under its umbrella. These incentives include a three-month exemption from renewing commercial licenses, flexible options for payment of fees, such as installment plans; a 50 per cent discount on the cost of licenses; full exemption from the amount of insurance on new residency visa applications; a 25% discount on new residency visas for family members of people employed by RAKEZ companies; full exemption from renewal delay fines; full exemption from cheque postponement fees; full exemption from package downgrade fees; full exemption from changing activity fees; a 25 per cent discount on new workers’ housing applications; and complete exemption from entrance fees to centers affiliated with RAKEZ.

Tourism incentives

The initiatives launched by Ras Al Khaimah Tourism Development Authority include the establishment of an Incentive Committee and an Internal Steering Committee for the Emirate. Other initiatives supporting the tourism sector include a six-month exemption from tourist license fees and exemption from the ‘tourism dirham’ fee from March to May 2020; full exemption from tourism licensing fees for the second and third quarters of 2020 and from tourism licensing fines until September 30, 2020. A financial incentives package is also being launched, targeting private tourism companies including mid-level and four-star hotels and specific tourist destinations, golf courses and other tourism institutions. In addition, the authority’s partners in the hospitality sector will be able to participate in a variety of exhibitions and promotional tours that will be launched in 2020 and 2021, with all fees waived.

Support for local businesses and citizens

Ras Al Khaimah Chamber of Commerce and Industry is continuing its role of supporting the local business community and enhancing its contribution to sustainable development by approving a set of steps to assist commercial organizations operating in the Emirate. These include 100 per cent exemption from delay fines due on memberships ending on June 30, 2020. In an initiative to support citizen entrepreneurs who benefit from the business incubators program, the Chamber decided to exempt them from rental fees due for the period from April to December 2020.

Exemptions for exhibition

In order to restore activity to the exhibition sector, Ras Al Khaimah Chamber of Commerce and Industry introduced a 50% exemption on foreign exhibition permits until the end of 2020 and a 25 per cent exemption on consumer and specialized exhibitions held at Ras Al Khaimah Exhibition Center until the end of 2020.