Individuals who have been impacted by the rain are eligible for interest-free loans from the Mohammed bin Rashid Foundation
A program that will give interest-free loans to small companies that have been impacted by the recent severe weather has been unveiled by Dubai. This comes after the United Arab Emirates (UAE) saw its heaviest rainfall since records began early this month.
Mohammed bin Rashid Foundation provides interest-free loans to those affected
According to a statement released by the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development, popularly known as Dubai SME, the organization would also provide grace and postponement periods for loans that have already been taken out by Emiratis who run small and medium-sized businesses.
With the special incentive for Dubai Small and Medium Enterprises (SME) members, qualified businesses have the opportunity to get interest-free loans of up to Dh300,000 ($81,688) with a grace period ranging from six to twelve months, with the purpose of repairing or replacing defective premises.
According to Abdul Al Janahi, chief executive of Dubai SME, which is a subsidiary of Dubai's Department of Economy and Tourism, "We are collaborating with our partners to explore ways of mitigating the effects of the recent weather conditions that have impacted the country, thereby facilitating a swift recovery." As a result of this, the country is able to recover more quickly.
"The move will contribute to alleviating the financial burden and covering the costs of repair and replacement operations to resume business as quickly as possible and reduce the period of disruption to regular operations," Dubai SME said. Additionally, the move will support the local economy, which is significant considering the significant role that small and medium-sized enterprises (SMEs) play in revitalising and developing Dubai's economy.
The Mohammed Bin Rashid Fund for SMEs' authorized relief funding committee is able to receive the necessary documentation from Dubai Small and Medium-Sized Enterprises (SMEs) that have been affected.
Substantial storms in the United Arab Emirates caused flooding in a number of regions, as well as damage to homes and disruptions to normal routines. A coordinated reaction has been made by a number of departments located all around the United Arab Emirates in order to help recovery efforts.
Customers who have been impacted by the storms are eligible for a six-month repayment deferment for personal and auto loans, according to a notification that was sent out by the United Arab Emirates Central Bank late last week to all banks and financing businesses.
The regulator stated that the "deferral shall be without imposing additional fees, interest or profit" charges, or otherwise increasing the principle amount of the loan in any other way.
It was also verified by the Central Bank that if there is a complete insurance policy against loss and damage, then any damage that occurred to houses and automobiles as a result of the record-breaking storms that occurred the previous week would include coverage.
