The Department of Economic Development - Abu Dhabi has announced the launch of a digital service to receive requests from restaurants, tourism and entertainment companies at the emirate level, enabling them to recover 20% of the annual rental value due to them, according to what was stated in the recent circular issued in this regard.

 The head of the Department of Economic Development, Muhammad Ali Muhammad Al-Shurafa Al-Hammadi confirmed that this decision comes in implementation of the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces and Chairman of the Executive Council of the Emirate of Abu Dhabi to support the private sector within the initiatives of the economic package recently announced with the aim of Supporting companies and institutions affected by the implementation and application of preventive and precautionary measures to combat the Corona virus (Covid 19) infection.

 He clarified that the Abu Dhabi government ensured the return of the rental value that the investor incurred by 20%, to the benefit of the tenant who started his lease from September of the year 2019 and who renewed his contract during the period from the first of April 2020 until the end of September 2020 in order to enhance confidence in the business climate In the Emirate, where the decision includes all activities of restaurants, cafeterias, and tourist and leisure activities.

 He pointed out that the decision also comes within the package of initiatives that the department is currently implementing in support of the private sector, as companies and institutions operating in Abu Dhabi have recently been exempt from violations of the department, with a total value of more than 246 million dirhams, and it works to communicate with businessmen and investors periodically to see the challenges The obstacles they face and the extent to which their investments are affected due to the application of preventive and precautionary measures to combat Corona virus infection.

For his part, Undersecretary Rashid Abdul Karim Al Balushi said that the owners of restaurants and tourism and entertainment facilities "without hotels" that were included in the decision can obtain a service to recover 20% of the value of the annual lease contracts through the website of the department www.added.gov.ae where it requires This includes recording the data required for the license and the lease contract to take the necessary measures by depositing the amount due to the license account.

He pointed out that the service of receiving requests to retrieve the rental value was activated in coordination and direct link with the Department of Finance - Abu Dhabi, so that the requests are completed without human intervention through the automation of procedures and their acceptance in comparison to the data that is included in the registration application.

It is worth noting that the decision issued by the Abu Dhabi Department of Economic Development in this regard made it clear that in the event that the rental allowance is in a participatory formula such as a fixed rental allowance and a percentage of the income, the recovery is calculated on the fixed allowance, and the property owner who claims financial rights towards the tenant or any other financial right holder has a review. The competent court to reserve the due allowance, as the department does not accept any reservation request of any kind except by a court ruling.

The department added that the decision does not affect the remaining terms of the lease contracts and adopts the full contractual annual allowance for the purposes of documentation and fees and does not apply to the lease contracts ending with ownership as it applies to all new contracts concluded from the first of October 2019 until 31 March 2020 in addition to all lease contracts that have been Renewal from the first of April 2020 to September 31, 2020 regardless of the date of its conclusion.

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