Dubai expands business relief measures

Dubai has approved a second economic incentive package worth AED1.5 billion, lifting the value of support measures introduced in under two months to AED2.5 billion as the emirate moves to ease cost pressures on businesses and strengthen activity across key sectors.

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, approved the new package following an earlier AED1 billion programme endorsed by the Council in late March. The latest measures comprise 33 initiatives to be rolled out over periods ranging from three to 12 months, with individual timelines to be announced by the government entities responsible for implementation.

The package covers government fees and services, tourism, trade and logistics, real estate, construction, education, culture, arts, transport, customs and civil aviation. Its design points to a targeted approach rather than broad fiscal stimulus, focusing on liquidity, fee relief, deferred payments and regulatory flexibility for sectors facing operational pressures.

Sheikh Hamdan said Dubai remained committed to providing the enablers needed to support its strategic plans and development programmes while reinforcing the resilience of the economy. He said the measures build on the facilitation package announced in March and reflect the government’s continued engagement with the private sector.

Education and early childhood providers are among the direct beneficiaries. Private institutions registered with the Knowledge and Human Development Authority will be allowed to defer and instal licence renewal fees, while penalties will also be deferred. Early childhood centres registered with the authority will be exempt from licence renewal fees, fines and Dubai Municipality market fees. The Knowledge Fund will extend support to affiliated institutions, including partial rent exemptions and longer rent-free periods for centres under construction.

Educational institutions will receive relief through partial or full exemptions from guarantee insurance requirements linked to cancelled contracts, suspension of contractual penalty clauses, a freeze on scheduled rent increases at renewal and deferred rental payments. These measures are aimed at easing pressure on a sector where costs have risen alongside demand from Dubai’s expanding population.

Tourism, events and retail form another major part of the package. Establishments registered with the Dubai Department of Economy and Tourism will benefit from exemptions and deferrals covering the Tourism Dirham, sales fees on hotel rooms and restaurants, permit and licence fees for holiday homes, and event permit charges. Postponement and cancellation fees for events, exhibitions and conferences will also be waived.

The package further reduces fees for tour guides and desert safari activities, defers the e-link fee for tourism companies and hotel classification fees, and provides relief linked to sales and commercial promotions. The measures come as Dubai continues to rely on hospitality, aviation and events as pillars of its global services economy.

Business support measures include changes to government procurement rules. The Dubai Department of Finance will reduce final retention security for supply contracts from 10 per cent to 2 per cent for companies contracted with government entities, while raising the threshold for contracts exempt from final insurance from AED5 million to AED10 million. The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licences by two years for companies whose memberships expire in 2026.

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

Customs relief will allow outstanding amounts on import declarations to be paid in instalments, while fines in customs cases will be reduced by 80 per cent. Dubai Customs is also expanding facilitation measures for temporary imports, including artworks, reinforcing the emirate’s ambition to strengthen its position in trade, logistics and high-value cultural commerce.

Transport and aviation operators are also covered. Establishments registered with the Roads and Transport Authority will benefit from deferred payments for passenger activity sectors and exemptions from violations tied to vehicle availability and arrival time indices. Civil aviation businesses registered with the Dubai Civil Aviation Authority will receive reduced renewal fees for activity permits and suspension of late-renewal penalties.