Dubai has approved a second economic incentives package worth AED 1.5 billion, bringing the total value of business support measures announced in under two months to AED 2.5 billion. The package was approved by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
According to the Government of Dubai Media Office, the new package includes 33 initiatives that will be implemented over a period ranging from three to 12 months. The measures cover tourism, education, customs, SMEs, transport, civil aviation, real estate, construction, culture and other business sectors. Below is a simple question-and-answer guide for business owners in Dubai.
What is Dubai’s AED 1.5 billion economic incentives package?
It is a new set of government facilitation measures designed to support businesses operating in Dubai. The package is worth AED 1.5 billion and follows an earlier AED 1 billion package approved in late March 2026. Together, the two packages bring the total value of incentives introduced in under two months to AED 2.5 billion.
The second package includes 33 initiatives. These are expected to be implemented over three to 12 months, with the exact timeline for each measure announced by the relevant Dubai government entity.
Why did Dubai announce this package?
The package is designed to strengthen business resilience and reduce selected operating pressures across key sectors of Dubai’s economy.
Many companies in Dubai regularly deal with government fees, licence renewals, customs declarations, permit fees, rental obligations, contract guarantees, fines and regulatory payments. These costs can affect cash flow, especially for SMEs and businesses in sectors such as tourism, education, trade, transport and events. By reducing selected fees, allowing instalments, deferring payments or extending deadlines, Dubai is giving eligible businesses more flexibility to manage operations and continue contributing to the economy.
How many initiatives are included, and when?
The second package includes 33 initiatives, and they will be implemented over a period ranging from three to 12 months. These initiatives are not all handled by one authority — each measure will be implemented by the relevant Dubai government entity responsible for that sector or fee type.
This means a tourism-related exemption may be handled differently from a customs fine reduction, an education licence fee deferral or a civil aviation permit renewal measure. The specific timeframe for each incentive will be announced by the government entity responsible for it, so businesses should follow announcements from the authority relevant to their sector rather than assuming one general start date.
Which sectors are covered by the package?
The package covers several major sectors in Dubai’s economy, including:
The package is broad, but not every business will automatically qualify for every measure. Eligibility depends on the sector, the business activity, the authority involved and the final implementation rules.
Support for tourism, events and hospitality businesses
Tourism, events and hospitality businesses are among the clearest beneficiaries of the package. Establishments registered with the Dubai Department of Economy and Tourism will benefit from several exemptions and deferrals. These include exemption from collection of the Tourism Dirham and sales fees on hotel rooms and restaurants, exemption from permit and licence fees for holiday homes, and exemption from event permit fees.
The package also covers postponement and cancellation fees for events, exhibitions and conferences. It includes measures related to sales and commercial promotions, tour guide fees, desert safari activities, e-link fees and hotel establishment classification fees. This can support hotels, holiday home operators, tourism companies, event organisers, exhibition companies, tour guides, desert safari operators and related businesses.
Support for education and early childhood facilities
Private institutions registered with the Knowledge and Human Development Authority will benefit from the deferral and instalment of licence renewal fees and fines. Early childhood facilities registered with KHDA are also covered — these facilities are exempted from licence renewal fees, fines and Dubai Municipality market fees.
The Knowledge Fund has also introduced support measures for affiliated institutions, including partial rent exemptions, extended rent-free periods for early childhood centres under construction, deferred rental payments and a freeze on scheduled rent increases for certain educational institutions. For schools, nurseries and early childhood centres, these measures can help reduce renewal pressure and support cash flow.
What the package offers SMEs and government suppliers
The package includes measures that can help SMEs and companies working with Dubai government entities. The Dubai Department of Finance will reduce final retention security for supply contracts from 10% to 2% for companies contracted with government entities. It will also raise the financial threshold for contracts eligible for exemption from final insurance from AED 5 million to AED 10 million.
The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licences by two additional years for companies whose memberships expire in 2026. For eligible SMEs, this can reduce immediate financial pressure and support business continuity.
What customs support is included?
Dubai Customs measures include the option to pay outstanding amounts on import customs declarations in instalments. The package also includes an 80% reduction in fines for customs cases.
This is relevant for importers, exporters, logistics companies and trading businesses that need to manage customs obligations, reduce penalty pressure or improve working capital.
What transport sector support is included?
Establishments registered with the Roads and Transport Authority will benefit from deferred payments for passenger activity sectors. The package also includes exemptions from violations related to the vehicle availability index and arrival time index. This may support passenger transport operators and businesses whose activity, licensing or service obligations fall under RTA oversight.
What real estate and construction support is included?
The validity of building permits for construction projects under Dubai Municipality will be extended. The validity of approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment will also be extended by one year. For developers, contractors and construction-related businesses, extended validity can help reduce pressure around project timelines and administrative deadlines.
What civil aviation and culture support is included?
Establishments registered with the Dubai Civil Aviation Authority will benefit from reduced renewal fees for civil aviation activity permits, along with suspension of late-renewal penalties. This is relevant for aviation-related businesses that rely on DCAA activity permits to operate in Dubai.
For the creative sector, entities served by the Dubai Culture and Arts Authority will benefit from deferral and instalment of rents and financial obligations. The package also includes reduced rental fees for temporary spaces used to host arts and cultural events, as well as an expanded temporary import framework for artworks through Dubai Customs — supporting galleries, cultural venues, event organisers and businesses connected to Dubai’s creative sector.
Are all businesses automatically eligible?
No. Businesses should not assume that every exemption or deferral applies automatically. Each incentive will be implemented by the relevant government authority, and the final procedure may vary by sector. A hotel, a school, a customs-linked trading company and a transport operator may all need to check with different authorities. Before making financial decisions, confirm eligibility directly with the authority responsible for the relevant incentive.
What should business owners review now?
Business owners should review the documents, renewals and obligations that may be affected by the package. Important items to check include:
- Trade licence renewal dates
- Permit renewal deadlines
- Customs declarations and customs cases
- Tourism-related fees and obligations
- Event approvals, postponements and cancellations
- KHDA licence renewal and fine status
- RTA or DCAA permit obligations
- Building permit validity
- Government contract retention requirements
- SME membership expiry dates
This review can help businesses identify whether they may benefit from one of the announced measures.
Why documentation matters during this period
Incentive periods often create a good opportunity for companies to review paperwork, renewals and compliance documents. For businesses in Dubai, this may include checking whether corporate documents, authorisations, commercial paperwork, certificates, powers of attorney or supporting documents are properly prepared for submission to UAE authorities, banks, licensing departments or government entities.
If a document was issued outside the UAE, it may need attestation or legalisation before it can be accepted by UAE authorities. Seal & Signature supports businesses and individuals in Dubai with MOFA attestation, commercial document attestation, power of attorney support, legal translation and business setup services. Companies handling a new trade licence can also have supporting documents prepared correctly before submission.
Can Seal & Signature help with incentive applications?
Seal & Signature can help with document-related support, including MOFA attestation, commercial document attestation, business documentation support and related paperwork services. For eligibility, fee relief, instalment procedures or financial decisions under the AED 1.5 billion incentives package, businesses should contact the relevant Dubai government authority directly.
For help reviewing document requirements, message Seal & Signature on WhatsApp at +971 55 937 1335.
Quick Answers
The second package is worth AED 1.5 billion. Combined with the earlier AED 1 billion package from late March 2026, total incentives reach AED 2.5 billion in under two months.
33 initiatives, implemented over a period ranging from three to 12 months. Each measure is rolled out by the relevant Dubai government entity.
Tourism, education, customs, SMEs, transport, real estate and construction, civil aviation, and culture and the arts are all covered. Tourism, events and hospitality are among the clearest beneficiaries.
No. Eligibility depends on the sector, business activity and the authority involved. Confirm directly with the government entity responsible for the relevant incentive before making financial decisions.
