Dubai banks introduce business relief package to ease coronavirus financial pressures
March 21, 2020, 7:27 pm

Dubai banks introduce business relief package to ease coronavirus financial pressures

A customer uses an ATM machine at the Emirates NBD head office in Dubai, UAE, January 30, 2018. (Reuters)

Banks in Dubai will offer a comprehensive relief package to help ease financial pressures on their customers due to the impact of the coronavirus impact, the Dubai Media Office said.

“The measures announced by the banks seek to support the UAE Government and the UAE Central Bank six-month economic stimulus package and the Dubai Government three-month economic stimulus package to support the business sector in the UAE and Dubai,” the media office said in a statement.

https://twitter.com/DXBMediaOffice/status/1241405211119357954

The banks that joined the initiative include Emirates NBD, Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial Bank of Dubai.

Here are all the details of the initiative’s new measures:

Measures by Commercial Banks (Emirates NBD, Mashreq and Commercial Bank of Dubai) coming into effect from 1 April to 30 June 2020:

For Individual customers:

Retail loan customers who have been placed on unpaid leave by their employers can approach the bank for a repayment holiday of up to three months with zero interest and fees.

Customers who have availed personal loans, auto loans or mortgages can apply for a one-month repayment holiday with zero fees.

All first-time homebuyers can benefit from a 5 percent increase in the Loan-to-Value ratio (LTV) and a 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 installment 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 attractive low interest; installment 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 a 50 percent reduction in the cash advance charges.

Small Business Customers:

Small business customers who have availed 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. Also, the minimum balance charges for the basic business banking account will be waived for 3 months.

Business Banking Customers:

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 prioritize 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 installment payment plans against additional collateral to help them regularize their margin trading positions.

Respective Relationship Managers will continue to work alongside, and support customers faced with margin calls on their share portfolios.

https://twitter.com/DXBMediaOffice/status/1241424467374551042

Measures by Islamic Banks (Dubai Islamic Bank and Emirates Islamic) coming into effect from 1 April to 30 June 2020:

Individual Customers and Cardholders:

Customers who have availed 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 a 50 percent reduction in the cash advance charges.

Credit Cardholders can avail 0 percent Easy Payment Plans (EPP) on school fee transactions with zero processing fees.

Credit Cardholders can benefit from special pricing on EPP & Cash on Call, and 0 percent on Balance Transfers.

Cardholders can request refunds on foreign currency charges related to Travel/Hotel cancellations.

Customers with Existing and New Finance Facilities:

Financially impacted customers (unpaid leave, other valid reasons) can request up to 3 deferred monthly installments without fees and profit charges.

Debt consolidation solution can be provided upon request.

Finance to property value for first-time homebuyers increased by 5 percent (up to 85 percent for UAE Nationals and up to 80 percent for Expatriates).

Priority Banking Customers:

Priority Banking Relationship Managers are always available to support customers.

Margin Calls for customers trading on the stock market: The two banks will work alongside and support those who are faced with margin calls on their shares portfolio. The two banks encourage members facing this situation to get in touch with their

Relationship Managers to discuss and agree on optimal solutions.

Business Banking Customers:

Digital Account Package: Waiver of minimum balance fee for maintaining a minimum balance requirement of AED 10,000, until 30 June 2020.

Deferment of three months installment upon request for clients with a Business Finance facility.

Commercial Banking customers with Finance facilities from the two banks and whose businesses are affected by the current situation, can contact their Relationship Manager, to discuss restructuring solutions.

Customers can benefit from all the advanced features of the two banks’ digital platforms at discounted rates.

Wholesale Banking customers:

Customers with working capital facilities who are impacted by the ongoing COVID19 situation are encouraged to contact their respective relationship managers to achieve an optimal solution.

Relief measures will support key sectors affected by the COVID-19 situation by offering need-based refinancing, repayment deferrals or lower repayments where required.

Reduced charges for digital trade transactions for all trade finance customers. Customers using the digital platforms can get a significant reduction in transaction processing and handling fees and new digital platforms activations at zero cost for the next three months.

Customers will also be encouraged to use the two banks’ digital platforms for their Cash Management needs at considerably reduced charges.

source: Tuqa Khalid levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.