Khaled Mubarak Bani Zama, Director of the Industrial Development Department in the Department of Economic Development in Abu Dhabi revealed that the Abu Dhabi government bears the 20% rate recovered from the annual rental value from the rental contracts of restaurant owners and commercial and recreational facilities in the emirate, within the framework of economic stimulus packages recently launched by the government .
Bani Zama said, in a press briefing on Abu Dhabi Radio yesterday, that the "Abu Dhabi Economy" started yesterday receiving requests from owners of those establishments at the level of Abu Dhabi to recover the 20% of the rents, through a full digital electronic service.
He added that more than 8000 establishments rented by owners of restaurants and commercial and recreational facilities will benefit from a decision to recover 20% of the rents according to the inventory conducted by the department, noting that “Abu Dhabi Department of Economy” has already received 1,200 requests to recover 20% during the trial period that started since This decision was announced last March.
Investment promotion
According to Bani Zama, the owners who voluntarily deducted part of the rental value for the tenants during the last period, can apply for a refund through the "Abu Dhabi Economy" to obtain the rate.
He stressed that the recovery decision helps to encourage investment in the catering, tourism and recreational facilities sector, pointing out that the Abu Dhabi government wishes to develop and support this sector, which witnessed the injection of very large investments during the past years and encourage investment in it during the coming period by giving it more confidence and government support.
Lease contracts
The Director of the Industrial Development Department at the “Abu Dhabi Department of Economy” stated that the decision to recover 20% of the rental value applies to all new contracts for tenants of all restaurants, cafeterias, and tourist and leisure activities that were concluded from the first of October 2019 until March 31 next, in addition to all rental contracts that It was renewed from the first of April 2020 to September 31, 2020 regardless of the date of its conclusion, with the aim of enhancing the confidence of the business climate in the emirate.
He indicated that the redemption includes new investors and investors who stopped for a period and then resumed their activity again, and applies in the event of a rental dispute.
Renovation first
Bani Zama stressed that the tenants who renew their lease contracts from last April to next September should renew the lease contracts first, then submit the request for redemption.
He said that the request for redemption is submitted by entering a certificate from the bank stating the renewal of the rent, then entering the website of the Department of Economic Development, and then clicking on the initiative to recover 20% of the rental contracts and setting the license number if possible, pointing out that there is a full link with the Abu Dhabi Municipality , Which allows to identify the various beneficiary data.
Hard allowance
The Abu Dhabi Department of Economic Development explained, in a statement, that if the rental allowance is in a participatory form such as a fixed rental allowance and a percentage of the income, the return is calculated on the fixed allowance, adding that the property owner who claims financial rights towards the tenant or any other financial right holder must 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 indicated that the decision does not affect the rest of the terms of the lease contracts.
The Abu Dhabi Department of Economic Development received 1,200 requests for refund during the trial period that began since the announcement of the decision.