Dubai: H.H. 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, has approved a second package of economic incentives valued at AED1.5 billion. Combined with the first AED1 billion package approved at The Executive Council’s meeting in late March, the new package brings the total value of incentives introduced in under two months to AED2.5 billion.
According to Emirates News Agency, the second package comprises 33 initiatives that will be implemented over a period ranging from three to 12 months, with the timeline for each initiative to be announced by the respective government entity. The package spans a range of sectors, including government fees and services, tourism, trade and logistics, real estate, construction, education, and arts and cultural activities.
H.H. Sheikh Hamdan emphasized the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, stating that Dubai has developed a unique model for adapting to change and transforming challenges into opportunities. He highlighted the importance of the partnership between the public and private sectors, which prioritizes people and responds to ideas and proposals that safeguard achievements and ensure progress.
He further added that the government remains committed to providing the necessary enablers to support Dubai’s strategic plans and development programmes. The second package of economic facilitation measures, worth AED1.5 billion, reinforces the measures announced in late March.
Private institutions registered with the Knowledge and Human Development Authority (KHDA) will benefit from deferred and installment payments for licence renewal fees, as well as a deferral of fines. Early childhood facilities registered with KHDA are exempt from licence renewal fees, fines, and Dubai Municipality market fees.
The Knowledge Fund has introduced support measures for its affiliated institutions, granting early childhood centres partial rent exemptions and extended rent-free periods for centres under construction. Broader support for educational institutions includes partial or full exemptions from guarantee insurance requirements for cancelled contracts, suspension of contractual penalty clauses, a freeze on scheduled rent increases upon renewal, and deferred rental payments.
In the cultural sector, establishments served by the Dubai Culture and Arts Authority will receive deferrals and installment options for rents and financial obligations, reduced rental fees for temporary spaces for arts and cultural events, and an expanded temporary import framework for artworks by Dubai Customs.
Tourism establishments registered with the Dubai Department of Economy and Tourism will benefit from exemptions and deferrals, including exemption from the collection of the Tourism Dirham, sales fees on hotel rooms and restaurants, permit and licence fees for holiday homes, and event permit fees. Additional benefits include fee exemptions for sales and commercial promotions, reduced fees for tour guides and desert safari activities, and deferral of the e-link fee for tourism companies and hotel establishment classification fees.
The Dubai Department of Finance will reduce the final retention security for supply contracts from 10 percent to 2 percent for companies contracted with government entities, and increase the financial threshold for contract exemption 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 additional years for companies whose memberships expire in 2026.
Companies facing temporary business continuity challenges, including desert safari and camping operators, marina-related businesses, aviation-related activities, drone and fireworks companies, and event management companies, will receive a one-time full exemption from certain 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.
Dubai Customs will offer instalment payment options for outstanding amounts on import customs declarations and an 80 percent reduction in fines for customs cases. The transport sector, registered with the Roads and Transport Authority, will benefit from payment deferrals for passenger activity sectors and exemptions from violations related to the vehicle availability index and arrival time index.
In real estate, building permits for construction projects under Dubai Municipality will have extended validity. Approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment will also be extended by one year. In civil aviation, establishments registered with the Dubai Civil Aviation Authority will benefit from reduced renewal fees for civil aviation activity permits and suspension of late-renewal penalty fees.
Implementation timeframes for all incentives will be announced by the respective government entities responsible for each initiative. These incentives reflect the Government of Dubai’s proactive approach to monitoring economic conditions through working groups drawn from across Dubai’s economic entities, enabling the government to identify business challenges, particularly for small, medium, and emerging enterprises, and design initiatives to address current and future needs.