Dubai unveils new $410m economic support package for businesses

Dubai has approved a 1.5 billion dirham ($410 million) economic support package designed to ease costs for businesses and bolster the emirate’s economic resilience amid global uncertainty. The package, ratified by Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, comprises 33 initiatives across tourism, trade, education, transport and customs services, with measures scheduled to remain in place for between three and 12 months. The announcement brings the total value of economic incentives introduced by Dubai in under two months to 2.5 billion dirhams, following an earlier 1 billion dirham package unveiled in March.

Direct quote

In an X post, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said: “Dubai has built a model that transforms challenges into opportunities for growth.” He added: “We remain committed to strong public-private partnerships and maintaining close engagement with the community and business sector, taking every decision needed to support society, strengthen economic resilience, and reinforce Dubai’s position as a global economic hub.”

Context and details

The new measures target sectors hit by rising costs and regional tensions, including disruptions linked to the US-Iran war. Key elements of the package include:

• Tourism: exemptions from the Tourism Dirham collection and municipal fees on hotel room and restaurant sales, plus waivers of permit, postponement and cancellation fees for events.
• Commerce: two-year extensions on membership licenses for small and medium enterprises registered with the Mohammed bin Rashid Establishment, exemptions and reductions on sales and promotional offer fees, and a reduction in final retention security for supply contracts from 10 percent to 2 percent.
• Education: exemptions and facilitations for early childhood centres, and deferral and instalment plans for license renewal fees and fines for private educational institutions.
• Customs: facilities to pay outstanding import amounts in instalments and an 80 percent reduction in fines for customs cases.
• Transport and aviation: deferrals for sector payments and exemptions from specific fines, together with a 50 percent reduction in fees for renewing civil aviation activity permits.

Measures are predominantly temporary, running between three and 12 months, intended to provide immediate relief while authorities monitor economic conditions.

Outlook

The package complements a separate financial resilience plan rolled out in March by the Central Bank of the UAE, which provided easier access to liquidity, temporary relief on funding and capital buffers, and flexibility for loan classifications to support banking sector stability. Together, these steps are intended to ease financial pressures on businesses and families, improve economic flexibility and support continuity in key sectors.

Dubai’s leadership has signalled that targeted, time-bound incentives and coordination with the private sector will be used to manage short-term shocks. With total support measures now standing at 2.5 billion dirhams in under two months, authorities say they will continue to assess needs and engage closely with the business community to maintain the emirate’s economic momentum.