Abu Dhabi Economy expands the range of activities benefiting from the initiative to recover 20% of the rental value

The Department of Economic Development in Abu Dhabi today announced the expansion of the range of companies and groups benefiting from the initiative to recover 20% of the rental value in Abu Dhabi, to include activities for nurseries, dental clinics, beauty centers and women's salons.

The expansion of the scope of the beneficiaries of the initiative will include 2,499 lease contracts throughout the Emirate of Abu Dhabi, 1,320 of which are lease contracts for beauty centers and salons for women, 772 for dental clinics and 407 for nurseries, and this applies to the new contracts signed between October 1, 2019 and March 31, 2020, which were renewed. Between April 1 and September 30, 2020, it does not apply to lease-to-own contracts.

The Undersecretary of the Department of Economic Development - Abu Dhabi, Rashid Abdul Karim Al Balushi, said: “The decision to expand the initiative comes as a result of the recent study that we conducted in the department, which showed that a wide range of commercial activities have been affected by the application of preventive and precautionary measures to limit the spread of 'Covid-19'.

Al Balooshi added: “Expanding the categories of beneficiaries of rent recovery represents an important step towards enhancing the confidence of the private sector in the business climate in Abu Dhabi, as well as enabling companies to make optimal use of the emerging opportunities within the emirate’s flexible investment environment.

Al Balooshi concluded: “We renew our absolute commitment to stimulating the business sector and providing support to all private sector companies operating in the Emirate of Abu Dhabi, in a way that contributes to reviving the local economy by providing support capabilities to ensure business continuity and creating an attractive and stimulating investment environment for effective partnership between the public and private sectors.”

Al Balushi explained that the department has received 2,307 requests so far to take advantage of the rental value from restaurants, food and beverage outlets, and tourism and entertainment facilities, excluding hotels.

And the scope of activities benefiting from the initiative expanded to include women’s salons, beauty centers, dental clinics and nurseries.

It is worth noting that the Department of Economic Development in Abu Dhabi launched the rent recovery initiative last March, within the framework of the economic stimulus initiatives of the Emirate of Abu Dhabi within the Abu Dhabi Development Accelerators Program "Ghadan 21", aimed at reducing the burdens of specific categories of economic activities operating within The local business environment.

A large number of restaurants, food and beverage outlets, and recreational and tourist facilities in the emirate have benefited from the initiative, with the exception of hotels.

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