H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence and Chairman of The Executive Council of Dubai, recently approved a second package of economic incentives valued at AED1.5 billion ($408.4 million).

Combined with the first AED1 billion package approved at the Executive Council’s meeting in late March, the new package brings the total value of incentives introduced in under two months to AED2.5 billion.

“The AED 1.5 billion economic incentives package is a strong step that supports Dubai’s ongoing economic growth and keeps momentum across key sectors such as real estate, construction, tourism, trade and investment. At a time when global costs remain high, due to rising inflation across materials, logistics and supply chains, such initiatives play a critical role in reinforcing market stability. This further helps in maintaining momentum across key sectors, including real estate, construction, tourism, trade and investment,” said Tauseef Khan, Founder and Chairman, Dugasta Properties.

33 initiatives to support tourism, trade, real estate and more

The second package comprises 33 initiatives that will be implemented over a period ranging from three to 12 months, with the timeline for each initiative to be announced by the respective government entity. The package spans a range of sectors, including government fees and services, tourism, trade and logistics, real estate, construction, education, and arts and cultural activities.

“Dubai has built a distinguished model for adapting to change and turning challenges into opportunities. The close partnership between the public and private sectors places people first, and we continue to listen and respond to ideas and proposals that protect our achievements and ensure continued progress,” said Sheikh Hamdan.

“We remain committed to providing the enablers that support the achievement of Dubai’s strategic plans and development programs, while further strengthening the resilience that characterizes our economy. As part of these efforts, we approved the second package of economic facilitation measures worth AED1.5 billion, further strengthening the measures announced in late March,” he added.

KHDA eases fee burdens for registered institutions

As part of the economic incentives package, private institutions registered with Dubai’s Knowledge and Human Development Authority (KHDA) will benefit from the deferral and instalment of licence renewal fees as well as the deferral of fines. Early childhood facilities registered with KHDA are exempt from license renewal fees as well as fines and Dubai Municipality market fees.

The Knowledge Fund has also introduced a series of support measures for its affiliated institutions. Early childhood centers will benefit from partial rent exemptions and extended rent-free periods for centers currently under construction.

Educational institutions will receive broader support through partial or full exemptions from guarantee insurance requirements for canceled contracts, the suspension of contractual penalty clauses, a freeze on scheduled rent increases upon renewal, and deferred rental payments.

“The additional economic facilities approved by Dubai, as part of a package totaling AED2.5 billion over two months, reflect a strategic leadership vision that views the economy as an integrated ecosystem directly linked to social stability, business sustainability, quality of life and investor confidence. Amid regional developments, global economic shifts and rapidly evolving markets, these initiatives reaffirm Dubai’s ability to act proactively, understand the needs of vital sectors, and provide practical, flexible solutions that support companies and institutions through periods of challenge and transformation,” said Dr. Raymond Khoury, Partner and Public Sector Practice Lead, Arthur D. Little Middle East.

Cultural and tourism sectors to benefit from exemptions and deferrals

In the cultural sector, all establishments served by the Dubai Culture and Arts Authority will benefit from deferral and installment of rents and financial obligations, as well as a reduction in rental fees for temporary spaces used to host arts and cultural events, and an expansion of the temporary import framework for artworks by Dubai Customs.

In tourism, establishments registered with the Dubai Department of Economy and Tourism will benefit from a broad range of exemptions and deferrals. These include exemption from collection of the Tourism Dirham and the sales fees on hotel rooms and restaurants, exemption from permit and license fees for holiday homes, and exemption from event permit fees and all postponement and cancellation fees for events, exhibitions and conferences.

Establishments will also benefit from exemption from fees on sales and commercial promotions, a reduction in fees for tour guides and desert safari activities, and deferral of the e-link fee for tourism companies and hotel establishment classification fees.

“The breadth of the initiatives and the variation in their duration, from three to twelve months, also reflect a clear understanding of the different needs of sectors and their varying capacities for recovery and growth. Support directed to tourism, trade, education, and customs-related activities not only addresses immediate challenges; it also strengthens the efficiency of the economic ecosystem, preserves value chains, and gives companies space to realign their investment and operational priorities. From a socio-economic perspective, this flexibility enables families and businesses to plan with greater confidence and reduces pressures arising from market fluctuations and operating costs,” Dr. Khoury added.

Dubai expands business support initiatives

Under the economic incentives package, the Dubai Department of Finance will reduce the final retention security for supply contracts from 10 percent to 2 percent for all companies contracted with government entities, and raise the financial threshold for contracts eligible for exemption from final insurance from AED5 million to AED10 million.

The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will also extend membership licenses by two additional years for all companies whose memberships expire in 2026.

Companies facing temporary business continuity challenges — including desert safari and camping operators, marina-related businesses, aviation-related activities, drone and fireworks companies, and event management companies — will receive a one-time full exemption from certain fees administered by both the Dubai Department of Economy and Tourism and Dubai Municipality. These include: market fees, accommodation allowance fees for employees and license holders, general cleaning service fees, and foreign trade name fees.

Meanwhile, Dubai Customs measures include the option to pay outstanding amounts on import customs declarations in installments, and an 80 percent reduction in fines for customs cases.

“This package is particularly significant because it goes beyond easing financial and operational burdens on the business community. Its impact extends to protecting jobs, empowering small and medium-sized enterprises, and ensuring the continuity of sectors closely connected to people’s daily lives, such as tourism, trade, education, customs services, and others. In this way, the economic impact of these initiatives is also reflected socially, by supporting family stability, strengthening confidence in the labor market, and creating an environment more capable of growth and adaptation,” Dr. Khoury added.

Dubai supports transport, real estate and aviation growth

For the transport sector, all establishments registered with the Roads and Transport Authority will benefit from deferral of payments for passenger activity sectors and exemptions from violations related to the vehicle availability index and arrival time index.

In real estate, the validity of building permits for construction projects under the Dubai Municipality will be extended. The validity of approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment will also be extended by one year.

In civil aviation, establishments registered with the Dubai Civil Aviation Authority will benefit from a reduction in renewal fees for civil aviation activity permits and suspension of late-renewal penalty fees.

Implementation timeframes for all incentives will be announced by the respective government entities responsible for each initiative.

These incentives reflect the Government of Dubai’s proactive approach to monitoring economic conditions through working groups drawn from across Dubai’s economic entities. This enables the government to identify challenges facing businesses — particularly small, medium, and emerging enterprises — and to design targeted initiatives that address current and future needs.