Inside Dubai’s Dh1b support plan: 5 major incentives for businesses and residents
Fee relief and liquidity measures to ease short-term pressures
DUBAI – Dubai has introduced a sweeping Dh1 billion economic support package designed to ease financial pressures and strengthen resilience across key sectors.
Approved by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum during a meeting of The Executive Council of Dubai, the measures are set to take effect from 1 April 2026 and will run for three to six months.
Today, I chaired a meeting of The Executive Council, where we approved an AED 1 billion support package for Dubai’s business sector, to be rolled out from 1 April over the next three to six months. The measures are designed to strengthen the economy's resilience, readiness and… pic.twitter.com/ZBKYGBGppA
— Hamdan bin Mohammed (@HamdanMohammed) March 30, 2026
The initiative forms part of a broader set of decisions aimed at supporting individuals, businesses and the wider economy while reinforcing Dubai’s long-term growth trajectory.
The relief package sits alongside a series of strategic approvals, including updated GDP measurement frameworks, trade facilitation initiatives, and social and workforce-focused programmes. Together, they reflect Dubai’s approach to combining immediate economic support with structural reforms that sustain competitiveness and investor confidence.
Fee relief
At the heart of the Dh1 billion package lies a set of financial relief measures targeting businesses across multiple sectors. The government has approved the deferral of selected fees for a period of three months, providing immediate breathing space for companies navigating operational costs and cash flow challenges.
One of the most significant components is the postponement of 100 per cent of hotel sales fees and the Tourism Dirham. This move is expected to inject liquidity into the hospitality sector, allowing operators to redirect funds towards operations, staffing and service enhancements during the relief period.
The incentives are designed to improve short-term financial flexibility, particularly for sectors closely linked to tourism and services. By delaying mandatory payments, businesses can better manage working capital and stabilise operations amid evolving market conditions.
Customs ease
Trade facilitation forms another critical pillar of the relief package. Authorities have extended customs clearance grace periods from 30 days to 90 days, with the possibility of further extensions. This measure is aimed at easing pressure on importers and exporters by allowing additional time to settle obligations without disrupting supply chains.
The extended timeframe is expected to support smoother movement of goods while ensuring compliance with applicable tax regulations. It also provides businesses engaged in international trade with greater operational flexibility, particularly in managing inventory cycles and payment schedules.
By aligning customs procedures with business realities, Dubai is reinforcing its position as a global logistics and trading hub, ensuring that companies operating within the emirate remain competitive in international markets.
Talent support
The relief package also includes measures aimed at attracting and retaining skilled professionals. Authorities have introduced streamlined processes for the issuance and renewal of residency permits, reducing administrative hurdles for individuals and companies alike.
This step is expected to enhance Dubai’s appeal as a destination for global talent by simplifying relocation and employment procedures. Businesses benefit from quicker access to skilled workers, while professionals gain a more efficient pathway to living and working in the emirate.
The initiative complements Dubai’s broader strategy of fostering a dynamic labour market that supports innovation, entrepreneurship and long-term economic growth.
Trade innovation
Beyond immediate relief, Dubai has approved the Virtual Warehouses Initiative, overseen by Dubai Customs, as part of its efforts to modernise trade infrastructure. In its initial phase, the programme facilitates temporary imports, including high-value items such as artwork.
Under a new temporary admission declaration, artwork imports are exempt from customs duties and financial guarantees, while duties on private artworks are suspended for up to three years. The initiative also removes geographical restrictions and introduces virtual tracking systems, enabling continuous monitoring of goods through advanced digital solutions.
This builds on the ‘Art Flow’ pilot project and positions Dubai as a leading global centre for art logistics and high-value asset management. By reducing costs and simplifying procedures, the initiative offers tangible benefits to collectors, investors and institutions dealing in specialised goods.
Social impact
Complementing the economic measures, the Dubai Empowerment Strategy focuses on strengthening social stability and improving living standards for Emirati families. Supervised by the Community Development Authority, the strategy aligns with the Dubai Social Agenda 33 and expands on the achievements of the Dubai Empowerment Programme.
The programme has already supported 1,200 young Emiratis, created more than 7,000 job opportunities and engaged over 400 partner entities. The new strategy adopts a dual-track approach, offering tailored support for job seekers as well as individuals pursuing home-based entrepreneurship.
Through partnerships between government entities, private sector organisations and community groups, the initiative aims to promote sustainable employment, enhance financial stability and foster social cohesion.
Worker welfare
A significant component of the broader package is the Health and Safety Strategy for Workers’ Accommodation, which sets ambitious targets for improving living conditions across Dubai. By 2033, the strategy aims to ensure 100 percent access to essential services for workers and full compliance with health and safety regulations in all accommodations.
The initiative aligns with international standards, including those of the International Labour Organization, and supports the Dubai 2040 Urban Master Plan. It reflects a growing emphasis on worker welfare as a key element of sustainable urban development.
Alongside these measures, Dubai’s economic performance continues to demonstrate strong momentum. The emirate recorded 6.4 percent growth in the fourth quarter of 2025, contributing to an annual GDP increase of 5.4 percent, with total output reaching Dh937 billion. Authorities have also approved an updated methodology for measuring GDP, expanding data coverage and improving the accuracy of economic indicators.
The revised framework incorporates broader surveys and more comprehensive databases, offering a clearer picture of economic activity across sectors. This enhanced approach is expected to support more informed policymaking and reinforce transparency in economic reporting.