How business leaders are reacting to Dubai’s Dhs1bn stimulus plan

Dubai has rolled out a Dhs1 billion economic stimulus package, to take effect from April 1 and run for three to six months, aimed at easing cost pressures and maintaining economic momentum amid global uncertainty. Announced under the direction of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the package combines fee deferrals, extended payment deadlines and trade support measures designed to boost liquidity for businesses and preserve investor confidence.

Direct response from markets

"Sheikh Hamdan’s announcement of the new business support package marks a significant step in Dubai’s ongoing effort to position itself at the forefront of global economic development. This initiative reflects a proactive approach to building an environment that is both resilient and future-ready for businesses," said Hamza Dweik, head of trading (MENA) at Saxo Bank. "The tailored support and strategic incentives will strengthen confidence across the market, encouraging local and international stakeholders to pursue growth and innovation with renewed assurance."

Context and details of the package

Business leaders from banks, financial services and private industry welcomed the measures as targeted liquidity support rather than traditional fiscal spending. Vijay Valecha, chief investment officer at Century Financial, noted the practical orientation of the package: "Dubai’s Dhs1bn economic facilitation package (around $272m) is a focused and timely step to support businesses while maintaining economic growth amid current global uncertainty. This is not traditional government spending; instead, it is designed to ease cash flow pressure through cost relief and payment flexibility."

• Business support: Selected government fees can be deferred for up to three months.
• Tourism & hospitality: Hotels will get a full deferral of tourism-related fees.
• Trade & logistics: Customs payment deadlines extended from 30 to 90 days to improve working capital for importers and exporters.
• Trade infrastructure: The Virtual Warehouses Initiative allows temporary imports and duty exemptions on certain high-value goods.
• Employment: The Dubai Empowerment Strategy continues to support jobs, with around 1,200 Emiratis supported and over 7,000 jobs created so far.
• Workforce development: A government aim for 100% compliance in worker accommodation standards by 2033.

Executives argue the package will aid operational continuity. Amit Dua, president at SunTec Business Solutions, said: "By prioritising liquidity, continuity, and business confidence, Dubai is not merely cushioning risk; it is protecting momentum. The measures coming into effect from April 1, 2026, give businesses more room to manage volatility without losing sight of growth."

Outlook

Industry figures said the stimulus is intended to shore up investor sentiment and accelerate Dubai’s positioning as a hub for capital. Kalpesh Khakhria, group chairman of Klay Group, argued the measures will be catalytic for wealth management and foreign investment: "What drives investor confidence in the Gulf today is the undeniable reality that economic management here is intentional rather than reactive... empowering the private sector will undoubtedly encourage even more ultra-high-net-worth families, entrepreneurs, and family offices to put down permanent roots and build multi-generational wealth in the Emirates."

Madhur Kakkar, founder and CEO of Elevate Financial Services, framed the initiative as long-term thinking: "This initiative strongly reflects the Dubai Promise, a city where visionary leadership consistently steps forward to support its people, businesses, and long-term growth." Collectively, leaders say the package’s focus on liquidity, lower costs and trade facilitation aims to sustain momentum as global conditions remain uncertain.