Dubai’s Dh1.5bn incentives package explained: 9 key sectors set for major relief
Thirty-three initiatives rolled out over a three to 12-month period
DUBAI – Dubai has unveiled a second and larger economic incentives package worth Dh1.5 billion, broadening support measures for businesses and institutions across multiple sectors as authorities move to reinforce economic resilience and reduce operating pressures.
Approved by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, the latest package follows the Dh1 billion support initiative announced in late March. Together, the two packages bring the total value of incentives introduced in under two months to Dh2.5 billion.
I approved an additional package of economic incentives worth AED 1.5 billion, bringing the total support introduced over the past two months to AED 2.5 billion. The new package includes 33 initiatives offering facilitation measures ranging from three to 12 months across key… pic.twitter.com/Xhr5vYkSB8
— Hamdan bin Mohammed (@HamdanMohammed) May 21, 2026
The latest package includes 33 initiatives, with implementation periods ranging between three and 12 months depending on the measure. Timelines for each initiative will be announced by the relevant government entities. The package spans a broad range of industries and services and reflects Dubai’s continuing efforts to monitor economic conditions and address challenges faced by businesses.
His Highness Sheikh Hamdan said Dubai’s model has focused on adapting quickly to change and transforming challenges into opportunities, supported by close cooperation between public and private sectors.
Here is a closer look at the sectors included in Dubai’s new package and what each one receives:
Education and early childhood
Private institutions registered with the Knowledge and Human Development Authority (KHDA) will receive deferred and instalment-based licence renewal payments, along with deferred fines.
Early childhood facilities under KHDA will receive broader support through exemptions from licence renewal fees, fines and Dubai Municipality market charges.
Additional support from the Knowledge Fund includes partial rent exemptions, longer rent-free periods for centres under construction, suspension of contractual penalties, deferred rental payments and freezes on rent increases during renewals.
Arts and culture
Establishments served by Dubai Culture and Arts Authority will receive deferred rents and financial obligations.
Temporary spaces used for artistic and cultural events will benefit from reduced rental fees, while Dubai Customs will expand the temporary import framework for artworks.
Tourism and hospitality
Tourism businesses receive one of the broadest collections of incentives under the package.
Measures include exemption from collection of the Tourism Dirham and sales fees on hotel rooms and restaurants. Holiday homes will also receive exemptions from permit and licence fees.
Tourism firms and hotel establishments will additionally benefit from deferred e-link fees and hotel classification fees.
Events and retail
Event organisers and retail businesses also receive cost relief.
Permit fees for events, conferences and exhibitions will be exempted, along with postponement and cancellation charges.
Authorities have also exempted fees on sales and commercial promotions and reduced charges for tour guides and desert safari activities.
Small business support
The Dubai Department of Finance has reduced final retention security for supply contracts with government entities from 10 percent to 2 percent.
The threshold for contracts eligible for exemption from final insurance has also doubled from Dh5 million to Dh10 million.
The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licences by two years for companies expiring in 2026.
Companies facing operational challenges
A number of industries facing temporary business continuity pressures are receiving one-time exemptions.
These include desert safari and camping operators, aviation-related businesses, marina activities, drone and fireworks firms and event management companies.
The support package includes exemptions from market fees, accommodation allowance charges for employees and licence holders, general cleaning service fees and foreign trade name charges.
Customs and trade
Dubai Customs will allow businesses to pay outstanding import customs declaration amounts through instalments.
An 80 percent reduction in fines for customs cases has also been introduced under the package.
Businesses registered with the Roads and Transport Authority will receive payment deferrals related to passenger activity sectors.
The package also removes violations linked to vehicle availability and arrival time indexes.
Real estate
Construction projects under Dubai Municipality will receive extended building permit validity periods.
Housing construction loan approvals for UAE nationals under the Mohammed bin Rashid Housing Establishment will be extended by one year.
Civil aviation
Meanwhile, businesses registered with the Dubai Civil Aviation Authority will receive reduced permit renewal fees and suspension of late-renewal penalties.
The package will be implemented by the respective government entities over the coming months, with authorities continuing to monitor economic conditions through specialised working groups that assess business needs and identify future support measures.