CROWN PRINCE ANNOUNCES Dh50bn ECONOMIC STIMULUS FOR ABU DHABI
▶ Executive Council to develop a plan of execution within 90 days ▶ Ten new initiatives to boost competitiveness and efficiency ▶ Creation of 10,000 jobs for Emiratis in the private and public sectors
A massive Dh50 billion stimulus package for Abu Dhabi has been announced by Sheikh Mohammed bin Zayed, the Crown Prince.
Officials have been given just 90 days to create a detailed execution plan for the package, which seeks to transform the ease of doing business and bring lasting economic benefits to Emiratis, residents and investors.
At the heart of the announcement are 10 initiatives that aim to accelerate the economy over the next three years. Sheikh Mohammed announced last night that “under the guidance of [President] Sheikh Khalifa bin Zayed, I have approved a three-year, Dh50bn economic stimulus package to support Abu Dhabi’s economic development and have tasked the Executive Council’s Executive Committee to draw up a working plan for allocations within 90 days”.
The initiatives include allowing people to officially work from home for the first time, with a new licensing system that drops the requirement for an office or work space for two years.
The move is in recognition of changing trends in the workplace and the growing shift to more flexible working conditions.
“I have instructed that new licences be exempted from the requirement of having a physical presence for two years, to permit permanent home licences, and to implement instant licensing systems in most commercial licence types and all services provided by Abu Dhabi Government,” Sheikh Mohammed said.
A comprehensive review of building regulations for private and commercial properties will be carried out to reduce costs for developers and encourage urban development.
Sheikh Mohammed, also Deputy Supreme Commander of the Armed Forces, has ordered a review of the length of time the public sector takes to pay private contractors.
That includes fines that can accumulate as a result of construction delays caused by slow or non-payment.
The Executive Council has been given a deadline of early September to draw up the detailed execution plan, with initiatives that will cover infrastructure and legislative projects, small and medium size enterprises, and industrial and social projects.
Sheikh Mohammed is stressing the importance of supporting the development of the local economy and creating jobs in Abu Dhabi.
This will include at least 10,000 new jobs for Emiratis in the public and private sectors, with an emphasis on promoting partnerships between the two.
“I’ve also ordered the provision of at least 10,000 jobs for Emiratis in the private and public sectors over the next five years, in addition to encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally,” said Sheikh Mohammed.
Companies already operating in Abu Dhabi free zones will be offered dual licences that will allow them to also operate outside the free zones, and to compete for government tenders.
The new home work licences will be accompanied by an instant system for most commercial licences and all Government services.
A new body, to be called Ghadan, will speed up economic diversification.
“I’ve ordered the establishment of the Abu Dhabi Accelerators and Advanced Industries Council, ‘Ghadan’, which is Arabic for tomorrow, to attract and support value-added investments and technologies that would further grow Abu Dhabi’s economy,” Sheikh Mohammed said.
The council will play an instrumental role in developing existing sectors and identifying opportunities for the stimulus package.
On the issue of slow payments for contracts, Sheikh Mohammed has ordered the formation of a special committee to oversee all relevant and related procedures.
“I’ve instructed to accelerate the settlement of due payments on contracts for the private sector, to review all fines for the healthcare, education and municipalities’ affairs sectors, and to form a committee by the Executive Office and the Department of Finance to oversee this,” he said.
The stimulus package also highlights the importance of tourism in establishing Abu Dhabi as a global destination that includes not just shortterm visits, but investment and longer-term residence.
The Crown Prince has ordered more development of eco-tourism, and programmes on land on water. They will include camping villages and a variety of areas dedicated to recreational sports.
In the coming weeks, the Executive Council will be working on a detailed plan of action.
I’ve also ordered the provision of at least 10,000 jobs for Emiratis in the private and public sectors over the next five years SHEIKH MOHAMMED BIN ZAYED