Dubai Announces AED 1 Billion Incentive Package to Support Economic Stability and Growth

Dubai has approved a comprehensive AED 1 billion economic incentive package aimed at supporting businesses, residents, and key sectors, reinforcing the emirate’s commitment to stability and sustained growth. The initiative, approved by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, will be implemented over a period of three to six months starting April 1, 2026.

The package forms part of a broader set of strategic initiatives endorsed during a meeting of The Executive Council of Dubai, aligning with the long-term vision of Sheikh Mohamed bin Zayed Al Nahyan and Sheikh Mohammed bin Rashid Al Maktoum. These measures aim to enhance economic resilience, promote trade and investment, and provide practical support across multiple sectors.

At its core, the incentive package is designed to ease short-term financial pressures while improving liquidity within the market. Key measures include the deferral of a range of government fees for three months, alongside targeted support for the tourism and hospitality sector through the postponement of hotel sales fees and Tourism Dirham payments for three months as well.

The initiative also introduces operational enhancements to facilitate business continuity and efficiency. Customs data grace periods will be extended from 30 to 90 days, providing companies in trade and logistics with greater flexibility to meet compliance requirements. In parallel, the streamlining of residency permit issuance and renewal processes is set to improve accessibility for talent, supporting Dubai’s position as a global hub for professionals and investors.

These measures come amid continued economic growth in Dubai, reflecting a proactive approach to city that prioritizes adaptability and long-term sustainability. By focusing on liquidity, ease of doing business, and workforce support, the initiative addresses immediate needs while reinforcing the foundations for future expansion.

Commenting on the announcement, His Highness Sheikh Hamdan stated: “Dubai remains committed to supporting individuals, families and businesses with confidence and stability… turning challenges into opportunities and emerging stronger than ever.”

The AED 1 billion incentive package highlights Dubai’s ongoing efforts to maintain a competitive, transparent, and resilient economic environment, one that continues to attract investment, enable growth, and respond effectively to evolving global conditions.