Dubai businesses welcome Dh1bn lifeline to boost liquidity and continue operating

Dubai unveiled a Dh1 billion ($272 million) support package to shore up liquidity for businesses affected by recent regional disruptions, deferring select government fees for three to six months and taking effect on April 1. The measures, announced by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, are designed to relieve short‑term cash‑flow pressure for critical sectors including tourism, hospitality, aviation, importers and exporters.

“The three‑month deferral of hotel sales fees and the Tourism Dirham fee represent a meaningful and welcome reduction of immediate cash flow pressure,” said Julien Bergue, co‑founder and managing partner for Middle East, Africa & Asia at Valor Hospitality Partners. “We are witnessing an acute workforce emergency.”

The package includes a three‑month deferral of hotel sales fees and the Tourism Dirham, an extension of customs data grace periods from 30 to 90 days (extendable for similar periods), and deferment of a group of government fee payments for three months. Dubai Media Office said the measures also provide streamlined procedures for issuing and renewing residencies to help talented people stay in the emirate.

Measures announced

• Dh1 billion package to boost liquidity, effective April 1; three‑ to six‑month stimulus horizon
• Three‑month deferral of hotel sales fees and the Tourism Dirham to ease cash flow for hotels
• Extension of customs data grace periods from 30 to 90 days, with possible further extensions
• Deferral of a group of government fee payments for three months to free up working capital
• Competitive advantages and streamlined processes for residency issuance and renewals

Industry leaders welcomed the move but warned it may not be sufficient on its own. Bergue said thousands of hospitality workers face “redundancy, salary cuts, or unpaid leave” and stressed the strategic risk of losing trained talent: “When demand returns – and it will – the city must have its people in place to deliver the five‑star experience that has made it globally iconic.” Raki Phillips, regional president of Accor's premium, midscale and economy division in the Middle East, Africa and Turkey, described the deferrals as “much‑needed fiscal support to the hospitality sector” and called the government’s stance “a powerful signal to owners and international partners.”

Smaller operators and service providers echoed the sentiment. Ruth Bradley, owner of Ruth Bradley Consulting, called the package a “step in the right direction to businesses getting the support they need to survive,” noting that deferrals could help with renewals of DET trade licences, Ejari and related business continuity costs. Ashish Panjabi, chief operating officer of Jacky’s Group, said: “Cash flow management is critical at this stage and whatever support the government can give is always welcome.” Mita Srinivasan, founder of Market Buzz International, added that “fee deferrals, extended customs grace periods and smoother residency processes do make a difference because they help with short‑term cash flow and reduce administrative pressure.”

The support comes after a temporary slowdown in tourism, hospitality and aviation following conflict-related disruptions since February 28, when regional tensions forced short‑term airspace closures and suspension of some flights. Observers noted the move mirrors past crisis responses; during the coronavirus pandemic Dubai announced a Dh7.1 billion stimulus split into five packages — Dh1.5bn, Dh3.3bn, Dh1.5bn, Dh500m and Dh315m — which included fee exemptions and refunds. Some entrepreneurs, including Female Fusion founder Jen Blandos, welcomed the timing but urged further steps such as removing the office space requirement, calling it one of the “most outdated and quietly damaging barriers for SMEs in the UAE.”