Another AED 1.5 bn of help coming to Dubai

AED 1.5 bn more is heading into Dubai’s economy as Dubai Crown Prince Hamdan bin Mohammed bin Rashid Al Maktoum signed off on a second and larger incentive package aimed at easing costs across tourism, trade, education, customs, transport, and aviation, according to a post on X.

This brings total stimulus into Dubai’s economy since the war to AED 2.5 bn, after a AED 1 bn package was introduced at the end of March to ease the financial strain on the private sector. The latest support seems to extend some of the earlier measures, which were set to last between three to six months, and targets a wider range of sectors than the initial more hospitality-focused package.

Still, tourism and hospitality are getting a major helping hand. The latest package includes 33 initiatives lasting between three and 12 months, with some of the biggest relief measures concentrated in tourism and hospitality. Hotels, restaurants, and tour operators will be exempt from fees on sales, licenses, and permits, and authorities will also suspend the collection of AED tourism fees. Event organizers are also getting relief through exemptions on permit, postponement, and cancellation fees.

Trade and SME support also feature heavily. Companies registered under the Mohammed bin Rashid Establishment for Small and Medium Enterprises will receive automatic two-year membership license extensions if their memberships expire in 2026, while final retention assurances for supply contractors engaged by government entities are being slashed from 10% to 2%.

More flexibility for imports: Importers will now be allowed to pay customs declaration dues in installments, while customs-related fines are being cut by 80%. The earlier package had introduced an extension of customs data grace periods from 30 to 90 days, and waived duties for art imports.

The transport sector is getting some love too: The package also includes deferred payments and fine exemptions tied to transport activities, alongside a 50% reduction in civil aviation permit renewal fees.

As are real estate + education: Building permits for real estate projects linked to the Dubai Municipality will be extended, while education operators will also get license renewal fee waivers and rental freezes.

Background

The UAE has consistently been rolling out various support measures since the outbreak of war — though Dubai is getting a lot of the attention. The UAE’s Economy and Tourism Minister Abdulla Bin Touq Al Marri said a tourism-specific support package is in the works, and Ajman recently stepped in with measures for tourism players.