Investors to get 100pc Dubai Municipality fee rebate for new hotels
New incentive scheme covers hotels in Dubai South, Palm Jebel Ali, and Dubai Islands
DUBAI has introduced a landmark initiative to encourage hotel investment across its emerging tourism zones, offering developers a 100% refund on key municipal fees.
The Dubai Department of Economy and Tourism (DET) has rolled out this investor incentive programme following Executive Council Resolution No. (68) of 2025, approved by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai.
What does the incentive include?
Under the scheme, hotel establishments that qualify will be reimbursed 100% of the Dubai Municipality fee on room sales and the Tourism Dirham charge for a period of two years after opening. The initiative covers new hotels, resorts, hotel apartments, and other approved accommodation facilities located within Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands – areas identified for accelerated tourism and commercial growth.
The new incentive aims to create strong momentum for hotel development in these key areas, ensuring that Dubai’s hospitality landscape continues to expand in step with its record-breaking tourism growth. According to the DET, all hotel establishments registered under the new Resolution will qualify for the fee reimbursements once operational.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, stated that this initiative marks a “new phase in the development of Dubai’s hospitality ecosystem.” He highlighted that the city’s tourism strategy continues to focus on public-private partnerships and diversification, enabling Dubai to strengthen its global positioning as “the best city to visit, live, work and invest in.”
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, described the decision as a reflection of the leadership’s forward-thinking vision to attract more private-sector investment. He said Dubai South is already witnessing significant development in residential and commercial projects, and the incentive will further accelerate hospitality growth in the area.
How can hotels apply?
To benefit from the programme, hotel establishments must submit applications to the Dubai Department of Economy and Tourism using the approved forms and procedures. Applicants must hold valid licences and classifications under Decree No. (17) of 2013 concerning the licensing and classification of hotel establishments in Dubai.
Once approved, the hotels must begin operations and start welcoming guests within three years of application submission to remain eligible for the incentive. The DET will monitor compliance to ensure that all qualifying conditions are maintained throughout the benefit period.
Hotel investors seeking to participate in the scheme can reach the Dubai Department of Economy and Tourism via the official contact number: +971 600 55 55 59.
Where are the focus areas?
The scheme specifically targets hotel development in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands – four rapidly evolving areas expected to play major roles in Dubai’s future tourism landscape.
Dubai South is home to Al Maktoum International Airport and is envisioned as a major urban hub featuring residential, commercial, and logistics zones. Palm Jebel Ali, relaunched in 2023, is set to become one of Dubai’s most luxurious coastal destinations, featuring hotels, villas, and leisure attractions. Dubai Islands aims to offer waterfront living and resort-style experiences, while Dubai Parks will continue to evolve as a family entertainment destination.
Dubai tourism
The launch of the incentive comes as Dubai continues to post robust tourism figures. In the first eight months of 2025 alone, the city welcomed 12.54 million international overnight visitors – a 5% year-on-year rise. The same period saw 29.03 million occupied room nights, marking a 4% increase from 2024, while the overall hotel occupancy rate climbed to 78.5%, among the highest in major global destinations.
These figures reinforce Dubai’s sustained post-pandemic tourism momentum, driven by large-scale developments, new attractions, and the implementation of the Dubai Economic Agenda, D33. The agenda targets a doubling of the emirate’s economic size over the next decade and an expansion of its tourism and investment capacity through high-value projects.
Khalid Al Malik, Managing Director of Dubai Holding, said the investor incentive programme reflects the emirate’s proactive approach to sustainable growth and innovation. “Dubai’s rise as a leading global hub is built on visionary leadership and bold initiatives such as this, which attract global investment and diversify the economy,” he noted.