Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. ARCHIVE

Dubai has announced a second and significantly larger package of economic incentives worth Dh1.5 billion, expanding support for businesses across key sectors as the emirate continues efforts to strengthen economic resilience and accelerate recovery. The new incentives package was approved on Thursday (May 21) by 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. It follows an earlier Dh1 billion relief package approved in late March, bringing the total value of economic facilitation measures introduced in less than two months to Dh2.5 billion. The latest package includes 33 initiatives that will be implemented over periods ranging from three to 12 months, depending on the responsible government authority. The measures cover sectors including education, tourism, logistics, trade, real estate, construction, arts and culture, aviation and transport. Sheikh Hamdan said Dubai’s economic strategy continues to be shaped by adaptability and collaboration between government and the private sector. “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,” he said. He added: “We remain committed to providing the enablers that support the achievement of Dubai’s strategic plans and development programmes, while further strengthening the resilience that characterises our economy.” Here is a sector-by-sector breakdown of who stands to benefit.

Education sector: Fee relief for schools and nurseries

Private institutions registered with the Knowledge and Human Development Authority (KHDA) will receive deferred licence renewal payments and the option to pay in instalments. KHDA-registered institutions will also benefit from deferred fines. Early childhood centres will receive broader relief, including: • Exemption from licence renewal fees • Waivers on fines • Exemption from Dubai Municipality market fees The Knowledge Fund Establishment will provide partial rent exemptions and longer rent-free periods for nurseries under construction. Educational institutions will also benefit from: • Full or partial exemptions from guarantee insurance requirements for cancelled contracts • Suspension of penalty clauses • Rent increase freezes during renewals • Deferred rental payments The measures are designed to help schools preserve operational stability while easing financial pressure on operators.

Tourism and hospitality: Major fee exemptions

Tourism operators registered with the Dubai Department of Economy and Tourism will receive one of the broadest sets of incentives. These include exemption from: • Tourism Dirham collection • Hotel room sales fees • Restaurant sales fees • Holiday home permit and licence fees • Event permit fees • Cancellation and postponement charges for exhibitions, events and conferences Additional support includes: • Reduced fees for tour guides • Lower desert safari activity charges • Deferred e-link fees for tourism operators • Deferred hotel classification fees This is expected to reduce operating costs and improve liquidity for tourism businesses still navigating market uncertainty.

SMEs and business contractors: Easier financial requirements

The Dubai Department of Finance will reduce final retention security for government supply contracts from 10 percent to 2 percent. The exemption threshold for final insurance requirements will rise from Dh5 million to Dh10 million, making it easier for businesses to access government procurement opportunities. Meanwhile, the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licences by two additional years for businesses whose memberships expire in 2026. This move is expected to provide critical breathing room for SMEs facing cashflow challenges.

Event and activity operators: One-time fee waivers

Businesses facing temporary continuity pressures will receive full one-time fee exemptions. This applies to: • Desert safari operators • Camping businesses • Marina-related firms • Aviation activity operators • Drone companies • Fireworks businesses • Event management firms Fees waived include: • Market fees • Accommodation allowance charges • Cleaning service fees • Foreign trade name fees The support is intended to stabilise sectors heavily dependent on tourism and large-scale gatherings.

Customs and trade: Lower penalties and instalments

Dubai Customs will allow businesses to pay outstanding customs declaration amounts in instalments. Customs-related fines will also be reduced by 80 percent, significantly lowering compliance costs for importers and traders. The move supports Dubai’s position as a regional logistics and trade hub.

Arts and culture: Relief for creative businesses

Institutions served by the Dubai Culture and Arts Authority will benefit from: • Deferred rent and financial obligations • Reduced rental fees for temporary event spaces • Expanded temporary artwork import frameworks via Dubai Customs The measures aim to help galleries, event organisers and cultural venues continue programming and exhibitions.

Transport sector: Payment deferrals and operational flexibility

Businesses registered with the Roads and Transport Authority will receive payment deferrals related to passenger activity sectors. Operators will also receive exemptions from violations linked to: • Vehicle availability index • Arrival time performance benchmarks This is expected to support transport companies adjusting to shifting passenger demand.

Real estate and construction: Permit extensions

The validity of construction permits under Dubai Municipality will be extended, giving developers more flexibility in project timelines. Housing loan approvals issued by the Mohammed bin Rashid Housing Establishment for UAE nationals will also be extended by one year. This provides relief for homeowners and construction stakeholders affected by delays.

Aviation: Reduced permit renewal costs

Companies licensed through the Dubai Civil Aviation Authority will receive: • Lower permit renewal fees • Suspension of late-renewal penalties The move supports aviation operators as the sector continues to rebuild activity levels.

What happens next?

Implementation dates for each initiative will be announced separately by the relevant government entities. The package signals Dubai’s continued strategy of using targeted economic facilitation measures to protect businesses, preserve jobs and maintain long-term competitiveness across critical sectors. ICA/Expat Media
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