Dubai Launches New Hotel Investment Incentive Program
Overview of the Initiative
On October 21, 2023, the Dubai Department of Economy and Tourism (DET) announced a promising new incentive program aimed at boosting hotel development in the city’s high-growth areas. This initiative comes in light of the Executive Council Resolution No. (68) of 2025, endorsed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Deputy Prime Minister.
Key Benefits for Investors
The newly introduced program allows hotel establishments to receive a full reimbursement of 100% on specific fees related to room sales and the Tourism Dirham for a period of two years following their opening. This financial encouragement applies to a range of facilities, including new hotels, resorts, and hotel apartments that receive approval from the DET. Targeted locations for this initiative include promising areas like Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands.
Comments from Industry Leaders
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (a component of DET), highlighted that this program marks a significant turning point in Dubai’s hospitality sector. He emphasized the initiative’s role in expanding Dubai’s footprint in emerging areas, aiming to sustain the city’s strong tourism growth trajectory. Kazim noted that ongoing public-private partnerships and a diversified approach to the market are at the core of their tourism strategy.
Khalifa Al Zaffin, the Executive Chairman of Dubai Aviation City Corporation and Dubai South, also praised the initiative. He pointed out its potential to attract stronger investments within the hospitality sector, particularly in rapidly developing areas like Dubai South, where residential and commercial projects are proliferating.
Vision for a Competitive Business Environment
Khalid Al Malik, Managing Director of Dubai Holding, echoed sentiments regarding the vision of Dubai’s leadership. He noted that strategic initiatives like this investor incentive program are fundamental for attracting investment, fostering innovation, and driving sustainable growth across crucial sectors. This approach reinforces Dubai’s stature as a significant global hub, further accentuating its appeal to international investors.
Impacts on Dubai’s Hospitality Ecosystem
This incentive program is pivotal for newly registered hotels post-issuance of the Resolution. It aims to draw increased investments into the hotel sector, thereby responding to the ever-growing demand. In alignment with the Dubai Economic Agenda D33, the program is designed to sustain the city’s rapid tourism growth. Notably, recent statistics reveal that Dubai welcomed approximately 12.54 million international overnight visitors within the first eight months of 2025, marking a 5% increase year on year.
During the same timeframe, hotels across the city recorded 29.03 million occupied room nights, reflecting a 4% growth from the previous year, alongside an impressive occupancy rate of 78.5%. This statistic positions Dubai favorably among major global cities, showcasing significant market demands in the hospitality sector.
Application Process for Interested Investors
The Dubai Department of Economy and Tourism is tasked with managing the application process for hotel projects under this initiative. All submissions by investors must be reviewed and approved, with the department responsible for ensuring compliance throughout the period that hotels benefit from the incentives.
To apply, hotel establishments must utilize the designated forms and processes set forth by the DET. Furthermore, they must comply with Decree No. (17) of 2013 concerning the licensing and classification of hotel establishments in Dubai to maintain their eligibility for the incentive.
Conclusion
This new hotel investment incentive program in Dubai reflects a calculated effort to enhance the city’s hospitality landscape in fast-evolving areas. By fostering economic diversification and nurturing a competitive business environment, Dubai continues to solidify its reputation as a prime destination for tourism and investment. The city’s leadership remains focused on ensuring that it caters to the growing needs of both residents and visitors alike, reinforcing its commitment to outstanding service and world-class infrastructure.
