Dubai Launches Comprehensive Hotel Investor Incentive Programme
Dubai is making headlines with a groundbreaking hotel investor incentive programme, offering a full 100% refund on crucial municipal and tourism fees for two years post-opening. This initiative aims to bolster the hospitality sector in various promising locations across the emirate.
Targeted Areas for Development
The programme specifically targets new hotel projects in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands. By focusing on these areas, the Department of Economy and Tourism (DET) aims to stimulate growth and diversity in the hospitality offerings of the emirate.
The incentive was introduced following the enactment of Executive Council Resolution No. (68) of 2025, spearheaded by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai. This landmark decision marks a pivotal moment in the development landscape of Dubai’s hospitality industry.
Key Components of the Initiative
Under this new initiative, qualifying hotels are set to receive refunds on both the Municipality fee related to room sales, as well as the Tourism Dirham. This applies for a period of two years from the date they commence operations. The incentive is available for a range of properties including new hotels, resorts, hotel apartments, and other facilities sanctioned by the DET within the designated areas.
Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, described this move as a significant step in evolving Dubai’s hospitality ecosystem. It not only expands the city’s tourism footprint into emerging districts but also continues to support its robust growth trajectory in the sector.
Strengthening Investor Confidence
Industry leaders are optimistic about this initiative. Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation, emphasized that the decision will enhance confidence among investors, particularly in rapidly developing areas like Dubai South.
Similarly, Khalid Al Malik, Managing Director of Dubai Holding, hailed the initiative as “bold,” showcasing Dubai’s forward-thinking leadership and its commitment to attracting international investments. The measure is particularly relevant as Dubai progresses with its Economic Agenda D33, which outlines ambitious growth targets.
Recent statistics highlight Dubai’s growing appeal, with the city welcoming approximately 12.54 million international overnight visitors between January and August 2025, which represents a 5% year-on-year increase. Furthermore, hotels recorded 29.03 million occupied room nights—a 4% rise compared to the previous year—culminating in a remarkable occupancy rate of 78.5%, one of the highest globally.
Application Process and Eligibility Criteria
The DET will oversee the application process, ensuring compliance with the initiative’s guidelines throughout the incentive period. To qualify, establishments must be licensed and classified under Decree No. (17) of 2013, which pertains to the Licensing and Classification of Hotel Establishments in the emirate. They must also start operations within three years of applying and maintain compliance throughout the incentive period.
This initiative aligns seamlessly with Dubai’s long-term vision of diversifying its economy, expanding visitor capacity, and further positioning itself as a leading global hub for tourism and investment. By fostering hotel development in newly established areas, the programme supports sustainable growth and enhances the emirate’s global competitiveness.
Conclusion
Dubai’s new hotel investor incentive programme is set to reshape the skyline of the emirate while enhancing its appeal as a top-tier tourist destination. Through targeted support and strategic planning, the initiative promises not only to invigorate the hospitality sector but also to solidify Dubai’s status as a dynamic and vibrant location for international investment.
