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The Executive Council of Dubai chaired by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum endorsed the second economic incentives package valued at AED1.5 billion, which together with the AED1 billion approved in late March brings total support to AED2.5 billion in under two months. According to the Dubai government’s media office, the 33 initiatives will be implemented over periods ranging from three to 12 months by the responsible authorities in each sector. Dubai government figures place the emirate’s economic expansion at 5.4 percent for 2025, producing a gross domestic product of AED937 billion that underpins these relief measures.[[1]](https://www.investindubai.gov.ae/en/dubai-government-support-for-business-2026) World Bank assessments project UAE growth around 5 percent in 2026, continuing the non-oil momentum that has characterized recent performance.
Sheikh Hamdan stated that Dubai has built a distinguished model for adapting to change and turning challenges into opportunities. He added that the close partnership between the public and private sectors places people first, and officials continue to listen and respond to proposals that protect achievements and ensure continued progress. The Crown Prince noted commitment to providing enablers that support Dubai’s strategic plans and development programs while strengthening the resilience that characterizes the economy.
The package spans government fees and services, tourism, trade and logistics, real estate, construction, education, and arts and cultural activities, the media office reported. Private institutions registered with the Knowledge and Human Development Authority will benefit from deferral and installment options for licence renewal fees along with deferral of fines, while early childhood facilities registered with the authority gain full exemptions from those fees and from Dubai Municipality market charges. The Knowledge Fund has extended partial rent exemptions and longer rent-free periods to affiliated early childhood centers currently under construction, and educational institutions will receive partial or full exemptions from guarantee insurance for canceled contracts plus suspension of penalty clauses and deferred rental payments.
Tourism establishments registered with the Department of Economy and Tourism will receive exemptions from collecting the Tourism Dirham and from sales fees on hotel rooms and restaurants in addition to waivers on permit fees for holiday homes and event-related charges. All establishments served by the Dubai Culture and Arts Authority stand to gain from deferral and installment of rents and financial obligations, reduced rental fees for temporary event spaces, and an expanded temporary import framework for artworks handled by Dubai Customs. The Department of Finance will reduce final retention security on government supply contracts from 10 percent to 2 percent and raise the exemption threshold for final insurance from AED5 million to AED10 million.
The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licenses by two years for companies expiring in 2026, while operators in desert safari, marina, aviation, drone, fireworks and event management fields will obtain a one-time full exemption from selected municipality and economy department fees including market charges and foreign trade name fees. Establishments registered with the Roads and Transport Authority will see deferral of payments in passenger activity sectors and exemptions from certain violation penalties, and Dubai Municipality will extend the validity of building permits for construction projects. The Dubai Civil Aviation Authority will reduce renewal fees for activity permits and suspend late-renewal penalties, while Dubai Customs will permit installment payments on outstanding import declarations accompanied by an 80 percent reduction in related fines.
Tauseef Khan, founder and chairman of Dugasta Properties, described the AED1.5 billion package as a strong step that supports Dubai’s ongoing economic growth and maintains momentum in real estate, construction, tourism, trade and investment at a time when global costs remain high. Dr. Raymond Khoury, partner and public sector practice lead at Arthur D. Little Middle East, said the measures reflect a strategic vision that views the economy as an integrated ecosystem linked to social stability, business sustainability, quality of life and investor confidence. Khoury added that the breadth of initiatives and their varying durations from three to 12 months demonstrate understanding of different sectoral needs and capacities for recovery.
