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What Businesses in UAE Should Do When Experiencing Financial Problems Due to COVID-19

What Businesses in UAE Should Do When Experiencing Financial Problems Due to COVID-19

The coronavirus outbreak not only in the UAE but across the globe has left majority of small business owners feeling uncertain regarding the future of their businesses. The ones that we have talked to are expecting the rapid spread of COVID-19 to have a massive negative effect on their revenue for 2020 and the following years. 

Unfortunately, the concerns related to COVID-19 are justified; however, there are a lot of ways you can protect your business while protecting yourself, your family, employees, and client base. 

In this article, we will lay out all that we know regarding how small businesses in UAE can minimize their losses. The suggestions we’ll lay out in this article aren’t exhaustive as there’s a lot of things that can play out with the outbreak. What we aim is giving you the best starting point, which you may need if you are feeling unsure and overwhelmed with the economy’s present condition.

Actions to address most pressing concerns of small business owners

Below is a list of the short-term actions that you will be able to take instantly in order to address the pressing issues that your small business is experiencing due to the COVID-19 spread in the UAE: 

Prioritize safety 

It is important for you to remember that safety is always the priority. We recommend you take extra effort in implementing precautions that are recommended by the Center for Disease Control and Prevention in your business asap.

Among the important recommendations of the CDC are as follows:

  • Perform a routine and thorough cleaning of the business premises; 
  • Emphasize the importance of sneeze and cough etiquette, including hand hygiene within the organization; 
  • Encourage staff members actively, especially the ones that are feeling not too well, to stay home. A business is to implement a system that’s made to let them continue working from home 

Read More: UAE COVID-19: Ways of Managing Employees’ Wages During the Pandemic

Adapt and utilize digital tools in continuing to serve clients 

People from across the globe have been required by local governments to stay home. This means your business is likely to see a decrease in its customers. A way of curbing the dip is by offering goods and services through the internet. Even consultations can be done online. 

If you are selling goods and you are not selling any of them online, then we suggest you check out how to set up an online store. Many online store owners are offering delivery services wherein customers are able to email or call ahead and talk regarding the products that they’re looking for. They then pick up the sealed or wrapped items without entering the physical store. A lot of restaurants are now offering food delivery that does not involve any contact. 

 Depending on the kind of business you are running, there are a lot of other ways for you to be able to continue offering services. A good example for this is a fitness center offering personal training through video conference. This can be done by yoga studios as well. 

Find more : COVID-19: A valid reason to avoid contractual obligations?

Getting the correct message out to clients and potential customers 

As soon as you have implemented the recommendations of the CDC for operating a business without compromising on you and your staff’s safety, ease the minds and possible issues of your clients by telling them what the situation is. Relay to them that you are taking the situation seriously and that the business is implementing processes and policies in order to keep the clients and employees safe as customers are doing business with you. 

Of course, you should not forget about giving important updates regarding product or service availability and the operating hours of the business. If you need help in communicating regarding the COVID-19 as it relates or impacts the business, then we suggest you talk to corporate lawyers in UAE

If you already have the most important updates and messages written out, here are ways for you to share them:

  • Send an email or message to all subscribers of the business; 
  • Update your business listings e.g. Google My Business; 
  • Post several updates on all of the social media accounts of the business; 
  • Update the homepage of the company’s website

If you have physical stores, you should also not forget to place signs in your store front. They should contain information regarding the precautions that the business is taking in order to continue operating and maintain safety of employees and clients. 

Read More: Making Employee Roles Redundant Due to COVID-19

Business Restructuring in UAE

 It’s not unusual to feel uncertain regarding your business’ future from COVID-19. If you want to talk to company liquidators in UAE to discuss whether company restructuring is a good option for your business, then reach out to HHS Lawyers. Our team can help address your concerns not only on company restructuring, but business recovery and company insolvency procedures as well as Employment Restructuring .

M. Al Khairy, LL.B. is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. Read more