Hamdan bin Mohammed Al Maktoum has approved a second economic incentive package worth AED1.5 billion to support businesses and key sectors in Dubai. Combined with the first AED1 billion package announced in late March, the total value of economic support introduced within two months has reached AED2.5 billion.
The new package includes 33 initiatives that will be implemented over the next three to 12 months. The measures cover several important sectors including tourism, trade, logistics, education, construction, transport, culture, customs, civil aviation and real estate.
His Highness said the decision follows the vision of Mohammed bin Rashid Al Maktoum to strengthen Dubai’s economy and support businesses during changing economic conditions. He added that Dubai will continue working closely with the private sector to protect economic growth and create new opportunities.
Support for Education and Early Childhood Sector
Private institutions registered with the Knowledge and Human Development Authority will receive support through deferred licence renewal fees, instalment payment options and postponed fines.
Early childhood centres registered with KHDA will be exempt from licence renewal fees, fines and Dubai Municipality market fees.
The Knowledge Fund also introduced several support measures. Early childhood centres will receive partial rent exemptions and longer rent-free periods for centres still under construction. Educational institutions will also benefit from rental payment delays, suspension of penalty clauses and exemptions from insurance requirements for cancelled contracts.
Relief for Arts, Culture and Tourism
Businesses operating under the Dubai Culture and Arts Authority will benefit from deferred rents and financial payments. Rental fees for temporary art and cultural event spaces will also be reduced.
Tourism and hospitality businesses registered with the Dubai Department of Economy and Tourism will receive multiple exemptions and fee reductions. These include exemption from Tourism Dirham collection, hotel and restaurant sales fees, holiday home permit fees and event permit charges.
The package also includes reduced fees for tour guides and desert safari activities, along with deferred e-link fees and hotel classification fees.
Business and SME Support
The Dubai Department of Finance will reduce the final retention security for government supply contracts from 10% to 2%.
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.
Several businesses facing operational challenges, including desert safari operators, camping businesses, marina-related firms, aviation activities, drone companies, fireworks firms and event management companies, will receive a one-time full exemption from selected government fees.
Customs and Transport Measures
Dubai Customs announced that companies can now pay outstanding import customs amounts through instalments. Customs fines will also be reduced by 80%.
Companies registered with the Roads and Transport Authority will receive deferred payment options and exemptions from certain vehicle-related violations.
Real Estate and Civil Aviation Benefits
Dubai Municipality will extend the validity period of building permits for construction projects. Housing construction loan approvals for UAE nationals under the Mohammed bin Rashid Housing Establishment will also be extended by one year.
Companies registered with the Dubai Civil Aviation Authority will receive reduced renewal fees for aviation permits and exemptions from late-renewal penalties.
Dubai authorities said implementation timelines for all incentives will be announced separately by the relevant government departments.
The government stated that these measures are part of Dubai’s ongoing efforts to monitor economic conditions and support businesses, especially small and medium enterprises, while strengthening economic stability and future growth.
