Refund 20 per cent of their commercial property leases

The Abu Dhabi Department of Economic Development (ADDED) has revealed the launch of a strategic new digital service that has been developed to receive applications from restaurants and tourism and entertainment facilities in the emirate to refund 20 per cent of the annual rental value of their commercial property leases based on the department's recently issued circular.


According to H.E. Mohammed Ali Al Shorafa, Chairman, ADDED, the move follows the directive that was issued by H.H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi,  Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, to support the private sector through the implementation of a recently designed set of initiatives included in a special economic stimulus package aimed towards supporting companies and facilities that have been affected by the implementation of the precautionary measures taken in the UAE to prevent the spread of the coronavirus (COVID-19).


H.E. Al Shorafa explained that Abu Dhabi Government ensures the refund of 20 per cent of the total rental value paid by investors who started their lease from September 2019 or renewed their contracts during the period from April 01, 2020 until the end of September 2020. The move is expected to help add and enhance the confidence in the emirate’s business environment. The resolution covers all facilities practicing activities of restaurants, cafeterias, tourism and entertainment.


H.E. added that the resolution is also part of the series of initiatives that ADDED has launched to help support the private sector, among which economic facilities operating in Abu Dhabi were recently exempted from violations recorded by the department, with a total value of around AED 246 million. Moreover, he shared that ADDED frequently communicates with businessmen and investors to learn about the challenges and constraints that they are facing, which in turn, will help them in determining the extent of the impact made on their investments as a result of the preventive and precautionary measures implemented to contain the COVID-19 outbreak.


Meanwhile, H.E. Rashed Abdul Karim Al Blooshi, Undersecretary, ADDED, pointed out that owners of restaurants and tourism and entertainment facilitiesnot including hotelsthat are covered by the resolution, can obtain a 20 per cent refund on their annual rental contracts via registration of the required information about their economic licenses and commercial property leases by visiting the '20 per cent Rental Rebate Initiative Registration' site on


Al Balooshi explained that the service of receiving applications for refunding the identified rental percentage has been activated in collaboration and e-connection with the Abu Dhabi Department of Finance. He noted that the service will help complete all requests without human intervention by the automation of procedures and the online registration of data required for applications.


ADDED’s issued resolution also stipulates that in case the rent allowance is in participatory form, such as a fixed rental allowance and a percentage of the income, the refund is then calculated on fixed allowance. The property owner who claims financial rights towards the tenant or any other financial right owner has to review the competent court’s decision to reserve the due allowance, in which the department does not accept any reservation request of any kind except those mandated by a court ruling.


Moreover, the resolution will not affect the rest of the terms of the rental contracts and adopts the entire contractual annual allowance for the purposes of documentation and fees. It does not apply on rental contracts ending in ownership. However, the decision will apply on all new contracts that were signed during the period covering October 01, 2019 until the March 31, 2020, in addition to all rental contracts that have been renewed from the beginning of April 2020 to September 31, 2020, regardless of the date of its signature.

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