COVID-19: Malls in UAE reopen with restrictions

What to expect when malls in UAE reopen with restrictions

Dubai: UAE’s residents can now start counting down to the relaunch of their favourite pastime. Authorities in Dubai and Abu Dhabi have issued guidelines on what shoppers and mall visitors can expect & the precautions they'll need to take to keep countering the COVID-19 spread.

The actual dates of opening will be confirmed later but until then, mall managements and retailers have clear guidelines to work on.

What visitors can't do immediately once malls will open

* Closure of all entertainment and tourist attractions ( for e.g., Dubai Fountain) to restrict crowding.

* No entertainment activities of any kind to be performed.

* Remove public seating

* Clear communication that visitors are allowed to visit the mall for a maximum of 3 hours.

* Maintain discipline and adult supervision of their children at all times.

* Clear communication on caps of visitors.

What Dubai Government is saying on rents and future activity

* Mall management is encouraged to make retailers pay rental for lease areas in mall based on pro-rata charge for number of hours the store stays opened instead of full-day rental.

* If retailers have to renew their lease, there should be no increase on rent after renewal.

* Neither mall management nor retailers are allowed to hold sales and promotions during Stage one of reopening malls, to avoid crowd management within a store.

* Maintain occupancy ceiling to 30% of common areas and gross leasable areas.

* F&B (in case of dine-in) outlets reduce seating arrangements to 30% and maintain placing seating and tables 6 plus feet apart.

* Stores (and F&B dine-in) to hang red tag at front door indicating maximum number of customers allowed inside. To be calculated based on 4 feet per customer.

* 75% of the mall parking to be closed.

The Abu Dhabi way – cut it by 20%

Meanwhile, retailers are looking at the measures offered to the retail sector in Abu Dhabi. Malls and landlords of other retail establishments in the emirate must grant tenants a 20% reduction on their annual rent.

This decision applies to leases “wherever they are located in the emirate”

and will cover:

* Restaurants, cafes, cafeterias, and takeaway outlets.

* All real estate units leased to establishments engaged in recreational activities where they exist.

* All rental properties for tourist and leisure facilities.

And

* Desert resorts and tourist resorts.

But for the 20% rent relief, the contracts need to be those entered into between October 1, 2019 to March 31, 2020. Or those leases renewed from April 1, 2020 to September 31, 2020.