The government of Dubai has announced a second economic incentive package valued at AED 1.5 billion ($408 million), aiming to cushion the impact of the ongoing Iran conflict on the emirate’s business community. This follows an initial AED 1 billion package released just two months prior, bringing the total support to AED 2.5 billion.
Quick Facts
- New incentive package valued at AED 1.5 billion.
- Brings total government support to AED 2.5 billion.
- Includes 33 initiatives across multiple sectors.
- Implementation scheduled over the next 3 to 12 months.
Breaking Down the New Support Measures
Approved by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the new package consists of 33 distinct initiatives set to be rolled out by various government bodies over the coming year. According to the UAE’s state-run Wam news agency, the measures are designed to identify and address the immediate challenges facing businesses, with a particular focus on small, medium, and emerging enterprises.
Targeted Relief for Key Sectors
The initiatives provide direct relief to several of Dubai’s most critical economic sectors. For tourism, the Department of Economy and Tourism will suspend the collection of the tourism dirham and sales fees on hotel rooms and restaurants. It will also waive permit and licence fees for holiday homes and events.
For small and medium enterprises, the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend company licenses by two additional years for all members whose registrations expire in 2026. Additionally, a one-time full exemption from certain fees will be granted to businesses facing continuity challenges, including desert safari operators, marina-based businesses, and event management companies.
Broad Support Across Education, Real Estate, and Aviation
The support extends beyond tourism and trade. In education, private institutions under the Knowledge and Human Development Authority will be able to defer and pay licence renewal fees in installments. Early childhood centres will receive partial rent exemptions and extended rent-free periods for sites under construction.
The real estate and construction sectors will see an extension on the validity of building permits from Dubai Municipality, while UAE nationals will get a one-year extension on approvals for housing construction loans.
In aviation, companies registered with the Dubai Civil Aviation Authority will benefit from reduced renewal fees for activity permits and a suspension of late-renewal penalties.
About the Dubai Economic Support Package
The Dubai Economic Support Package is a government initiative designed to provide financial relief and operational flexibility to businesses affected by regional instability. The package aims to support business continuity, particularly for SMEs, across sectors like tourism, trade, real estate, education, and logistics through a series of fee waivers, deferrals, and exemptions.
Source: AGBI
