Dubai has approved a second Dh1.5 billion economic incentive package, bringing total economic support measures to Dh2.5 billion in under two months. Containing 33 initiatives rolling out over the next three to 12 months, the package targets cost reduction across multiple sectors — from hospitality and education to construction and logistics.
Who Benefits and How
Hospitality businesses stand to gain immediately. Hotels and restaurants have been exempted from municipal fees, and the Tourism Dirham collection has been suspended for the incentive period. Event organisers also benefit, with permit, postponement, and cancellation fees waived across exhibitions, conferences, and sporting events.
Small and medium enterprises will see membership extensions of two years from the Mohammed Bin Rashid Establishment for SME Development, reducing near-term administrative and renewal costs. Private schools and nurseries registered with the Knowledge and Human Development Authority will receive fee deferrals, instalment options, and partial rent exemptions.
For the construction sector, building permit validity will be extended, easing pressure from project delays. Government contractors also benefit from a reduction in final retention security requirements — dropping from 10% to 2% — freeing up working capital on public projects.
Traders and logistics firms gain from new installment payment options for import customs declarations, while customs fines have been slashed by 80%.
A Signal of Continued Economic Support
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who approved the package as Chairman of the Executive Council, stated that Dubai will continue responding to economic challenges with proactive solutions. The government has indicated that further measures could follow depending on market conditions.
For businesses operating in Dubai, these initiatives represent a meaningful reduction in operational costs and a clear signal that the emirate remains committed to sustaining growth momentum.
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