H.H. Sheikh Hamdan Strengthens Dubai’s Economy with AED 1 Billion Support Package
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and UAE Deputy Prime Minister, announced on March 30, 2026, that the Executive Council has approved a substantial AED 1 billion support package aimed at bolstering Dubai’s business sector. This initiative is set to be implemented starting April 1, 2026, and will unfold over the next three to six months.
Key Initiatives in the Support Package
The Executive Council has approved five pivotal projects and initiatives as part of this support package. These include AED 1 billion in economic incentives designed to benefit both Dubai’s economy and its society. The package also highlights the emirate’s economic growth during the fourth quarter of 2025, alongside an updated methodology for measuring Dubai’s Gross Domestic Product (GDP).
Among the initiatives are the Virtual Warehouses Initiative, the Dubai Empowerment Strategy, and the Health and Safety Strategy for Workers’ Accommodation. These measures are expected to enhance the overall economic landscape of Dubai.
Economic Incentives and Regulatory Adjustments
The support package includes a temporary deferral of various government fees for three months. Notably, hotels will be permitted to postpone the payment of 100% of sales fees and the Tourism Dirham, aimed at improving liquidity within the hospitality and tourism sectors. Additionally, the grace periods for customs data will be extended from 30 to 90 days, with the potential for further extensions, ensuring compliance with applicable tax legislation.
This initiative also aims to streamline the processes for issuing and renewing residency permits, thereby facilitating easier access for talent to live and work in Dubai.
The Virtual Warehouses Initiative
The Virtual Warehouses Initiative, managed by Dubai Customs, is designed to facilitate temporary imports into Dubai, ensuring a seamless flow of goods, including artwork. Under a new temporary admission declaration, this scheme will exempt artwork imports from customs duties and financial guarantees, while suspending duties on private artworks for a period of three years.
The initiative also eliminates geographical restrictions, simplifies time extensions, and introduces virtual copies of artworks for advanced tracking. This builds upon the success of Dubai Customs’ ‘Art Flow’ pilot project, which has provided significant financial and procedural benefits. By streamlining the entry of high-value artworks, Dubai is reinforcing its position as a leading global hub for art and culture.
The Dubai Empowerment Strategy
Supervised by the Community Development Authority, the Dubai Empowerment Strategy aligns closely with the Dubai Social Agenda 33. It builds on the achievements of the Dubai Empowerment Programme, which has already supported 1,200 young Emiratis and created over 7,000 job opportunities while engaging more than 400 partner entities across various sectors.
This strategy aims to elevate living standards, enhance financial stability, promote sustainable employment, and foster social cohesion among Emirati families. It adopts a dual-track approach, offering tailored support for job seekers and individuals pursuing home-based entrepreneurship. Cross-sector partnerships among government, businesses, and community organizations are central to this initiative.
Health and Safety Strategy for Workers’ Accommodations
The Health and Safety Strategy for Workers’ Accommodations represents a significant advancement in improving living and working conditions for workers throughout Dubai. By 2033, the strategy aims for 100% access to essential services for workers and full compliance of accommodations with health and safety regulations. This initiative supports the Dubai 2040 Urban Master Plan and aligns with International Labour Organisation (ILO) standards, demonstrating Dubai’s commitment to worker welfare and sustainable urban development.
Economic Resilience and Growth
These measures are strategically designed to enhance the resilience, readiness, and agility of Dubai’s economy. In a statement on social media, Sheikh Hamdan emphasized that Dubai remains dedicated to supporting individuals, families, and businesses with confidence and stability. He noted that the emirate continues to evolve, transforming challenges into opportunities and emerging stronger than before.
Additionally, the Executive Council approved the results of Dubai’s economic performance for the fourth quarter of 2025, revealing a growth rate of 6.4%. For the entire year, Dubai’s GDP grew by 5.4%, reaching AED 937 billion.
The Council also endorsed a comprehensive update to the methodology for measuring Dubai’s GDP, expanding the scope of economic surveys and broadening statistical coverage to more accurately reflect all economic activities. This update introduces more comprehensive databases that better represent actual performance.
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Published on 2026-03-30 19:27:00 • By the Editorial Desk
