In implementation of the directives of His Highness the Crown Prince of Abu Dhabi within the initiatives of the economic package to support the private sector
Abu Dhabi on May 11,
The Department of Economic Development Abu Dhabi has announced the launch of a digital service to receive the requests of restaurants, tourism and entertainment companies at the level of the Emirate of Abu Dhabi, enabling them to recover 20% of the annual rental value due to them based on what was stated in the circular recently issued in this regard.
Mohammed Ali Al-Shurafa, Head of the Department, 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 Abu Dhabi to support the private sector within the initiatives of the economic package that was announced recently with the aim of supporting companies and institutions That were affected by the implementation and application of preventive and precautionary measures to fight against Corona Virus Covid 19 infection.
He clarified that the government of the Emirate of Abu Dhabi ensured the return of the rental value borne by the investor 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 with the aim of enhancing confidence in the business climate in the emirate Where the decision includes all activities of restaurants and cafeterias and tourist and leisure activities.
He pointed out that the decision also comes within the initiative package that the department is currently implementing in support of the private sector, as companies and institutions operating in Abu Dhabi were recently exempted 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 their challenges and 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.
On his part, Rashid Abdul Karim Al Balushi, Undersecretary of the Department, stated that the owners of restaurants and tourism and entertainment establishments "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 this is required Record the required data for the license and the lease contract to take the necessary measures by depositing the amount due to the license account.
The Undersecretary of the Department indicated that the service of receiving requests to retrieve the rental value has been activated in coordination and direct linking with the Abu Dhabi Finance Department so that the requests are completed without human intervention through the automation of procedures and their acceptance in relation 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 rent allowance is in a participatory form such as a fixed rental allowance and a percentage of the income, the recovery is calculated on the fixed allowance and on the property owner who claims financial rights towards the tenant or any other financial right owner The competent person for reserving 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 rest of the terms of the lease contracts and adopts the entire contractual annual allowance for the purposes of documentation and fees. It also 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 March 31, 2020 in addition to all lease contracts that have been Renewal from the beginning of April 2020 to September 31, 2020 regardless of the date of its conclusion.