This week, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Deputy Prime Minister, approved a set of economic incentives worth one billion dirhams. These measures align with the vision of Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, aimed at supporting the hospitality sector and the business community in Dubai. The key objective is to enhance the resilience of companies to face short-term challenges and regain growth momentum.
The introduced incentives for the hospitality and business sectors include a three-month deferral on the payment of all hotel room, food and beverage sales taxes, as well as the tourism dirham fee, starting from April 1, 2026. This decision applies to various hospitality establishments such as hotels, serviced apartments, and vacation homes. The initiative aims to alleviate financial burdens and boost liquidity in the hospitality and tourism sectors, ensuring business continuity in the upcoming period.
Additionally, the measures effective for three months from April 1 also include a postponement of specific business license-related fees, such as fees for optional name approvals, amendments, advertising for business licenses and their modifications, local business license fees, employee and worker accommodation fees, and public cleanliness services. These incentives can be utilized for the issuance of new licenses or the renewal of existing ones. Companies will receive an update at the end of the three-month period covered by these measures.
H.E. Helal Saeed Al Marri, Director General of the Department of Economy and Tourism in Dubai, stated, “This initiative reflects Dubai’s economic model characterized by flexibility, transparency, and collaboration. The prompt adoption and execution of these incentives as part of the broader economic support measures underscore the leadership’s commitment to easing the financial burden on the business community and stimulating the economy. Thanks to the close cooperation between public and private sectors, Dubai’s tourism sector, in particular, has experienced growth in recent years due to ongoing communication with relevant stakeholders aimed at understanding challenges and identifying opportunities, along with the swift adoption of policies that encourage growth and enhance resilience.”
Moreover, H.E. Issam Kazim, Executive Director of Dubai’s Tourism and Commerce Marketing Corporation under the Department of Economy and Tourism, remarked, “These incentives are a direct response to feedback from our partners in the tourism sector and will significantly enhance the sector’s ability to continue growing. In recent weeks, we have closely engaged with stakeholders in tourism who have faced extraordinary challenges. We commend their resilience and appreciate their role in maintaining high standards of service and the renowned tourism offerings of the city.”
H.E. Ahmad Khalifa Al Khatib, Executive Director of the Dubai Department of Economic Development, noted, “Dubai has gained global trust as a leading city for trade and business due to its focus on the needs of companies and entrepreneurs, along with its prompt response to necessary changes that benefit mutual interests. Providing companies with additional flexibility in the coming months will allow them to focus on their strategic priorities and enhance the sustainability of their operations in the long run.”
Additionally, the economic measures included an extension of customs data allowances and simplified procedures for issuing and renewing residency permits.