Dubai Powers Growth Again AED 1.5 Billion Boost for Businesses, Tourism & Innovation

Hamdan bin Mohammed bin Rashid Al Maktoum has approved Dubai’s second and larger economic stimulus package worth AED 1.5 billion, raising the total value of economic incentives introduced within less than two months to AED 2.5 billion. The package includes 33 strategic initiatives set to be implemented over a period of three to twelve months, aiming to strengthen business continuity, support investors, accelerate economic recovery, and enhance Dubai’s position as a global hub for tourism, trade, education, and innovation.

The tourism and hospitality sector will benefit significantly through exemptions from the collection of the Tourism Dirham, along with exemptions from municipal fees applied to hotel room sales and restaurant operations. Event organisers will also receive full exemptions from permit, postponement, and cancellation fees, encouraging the return of exhibitions, entertainment events, and international business gatherings across the city.

Under the commerce sector, Dubai is extending support for entrepreneurs and SMEs through a two-year membership licence extension for all companies registered with the Mohammed bin Rashid Establishment for Small and Medium Enterprises whose memberships expire in 2026. Businesses will also benefit from exemptions on sales and promotional offer fees, while the final retention security for supply contracts has been reduced dramatically from 10% to just 2%, improving liquidity and easing operational burdens for suppliers and contractors.

The education sector will receive targeted relief measures including exemptions and facilitations for early childhood centres, alongside deferred and instalment-based licence renewal payments and fines for private educational institutions. These initiatives aim to support educational continuity and ease financial pressures on schools and learning centres.

In the customs sector, businesses will now have the flexibility to pay outstanding import customs declaration amounts in instalments, while customs-related fines will see a major 80% reduction. These measures are expected to improve trade efficiency and support import-export activities.

Additional relief initiatives also cover transport and aviation sectors, including deferred payments and exemptions from selected fines related to transport activities, as well as a 50% reduction in fees for renewing civil aviation activity permits. Together, these measures reflect Dubai’s continued commitment to economic resilience, investor confidence, and sustainable growth across multiple sectors.

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