The Emirate of Dubai (Dubai)

Under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, banks in Dubai are now offering a comprehensive relief package to help customers ease financial burdens.

1. Which banks in Dubai are offering the relief packages?

The banks in Dubai which are offering the relief packages include:

  • Emirates National Bank of Dubai (Emirates NBD)
  • Dubai Islamic Bank
  • Emirates Islamic Bank
  • Mashreq Bank
  • Commercial Bank of Dubai

2. When do the relief packages take effect and how long are they valid for?

The relief packages have been put into place with effect from 1 April 2020 to 30 June 2020.

3. What is included in the relief packages offered by Emirates NBD, Mashreq Bank and the Commercial Bank of Dubai?

The following measures have been put into place:

Individual customers

  • retail loan customers who have been placed on unpaid leave by their employers can approach the bank for repayment holiday of up to three months with zero interest and fees
  • customers who have personal loans, auto loans or mortgages can apply for a one-month repayment holiday with zero fees
  • all first-time home buyers can benefit from a 5% increase in the Loan-to-Value ratio (the LTV) and full waiver of processing fees
  • a refund of charges on cash withdrawals done using debit cards on all ATMs of other banks across the UAE
  • credit card customers can benefit from interest-free instalment plans for all school fee payments as well as grocery purchases with no processing fees for up to 6 months. This is in addition to existing low interest, instalment plans available for higher tenors across all retail purchases
  • customers who may need to cancel their travel bookings done on their credit and debit cards will receive a refund of the foreign currency transaction fees charged by the bank
  • customers using credit cards for cash withdrawals will enjoy 50% reduction in the cash advance charges

Small business customers

  • small business customers who have merchant loans, equipment loans or business vehicle loans and have been impacted by the ongoing COVID-19 situation, can apply for a repayment holiday of 3 months with zero interest and fees
  • reduction of the monthly minimum balance required for basic business banking account to AED 10,000
  • the minimum balance charges for the basic business banking account will be waived for a period of 3 months

<

  • business banking customers with working capital facilities who are impacted by the ongoing COVID-19 situation are encouraged to contact their respective relationship managers to achieve an optimal financial solution

Wholesale banking clients

  • relief measures prioritise key industry sectors contributing to the UAE economy that have been most affected in the current situation, including healthcare, aviation, hospitality, retail, event management, consumer goods and education, by offering refinancing, repayment deferrals or lower repayments where required
  • reduced bank charges for digital trade transactions for all trade finance customers. Customers using the digital platforms are offered a significant reduction in transaction processing and handling fees and new activations at zero cost for the next three months
  • the banks are also providing their customers with enhanced credit and trade lines to manage ongoing operational costs

Trading clients

  • the banks have announced support for affected customers trading in the UAE bourses by offering suitable instalment payment plans against additional collateral to help them regularise their margin trading positions
  • respective Relationship Managers will continue to work alongside and support customers faced with margin calls on their share portfolios
  • customers who have personal finance, auto finance or mortgages can apply for a one-month repayment holiday with zero fees
  • debit cardholders can now withdraw cash for free from any other Banks' ATMs in the UAE
  • customers using credit cards for cash withdrawals will enjoy 50% reduction in the cash advance charges
  • credit cardholders can get 0% Easy Payment Plans (EPP) on school fee transactions with zero processing fee
  • credit cardholders can benefit from special pricing on EPP & Cash on Call, and 0% on Balance Transfers
  • cardholders can request refunds on foreign currency charges related to travel/hotel cancellations

To view the full article, please click here.

Originally published 05 April, 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.