H.H. Sheikh Hamdan Strengthens Dubai’s Economy with AED 1.5 Billion Support Package

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and the UAE’s Deputy Prime Minister and Defence Minister, has announced a significant AED 1.5 billion support package aimed at bolstering Dubai’s business sector. This new initiative raises the total economic incentives to AED 2.5 billion, following an earlier AED 1 billion support package approved in March.

In a statement shared on the social media platform X, Sheikh Hamdan detailed that the new package encompasses 33 initiatives designed to provide facilitation measures ranging from three to 12 months. These initiatives target key sectors, including tourism, trade and logistics, real estate, construction, education, and arts and cultural activities. The aim is to further enhance Dubai’s economic resilience and global competitiveness.

The timeline for the implementation of each initiative will be disclosed by the respective government entities. Sheikh Hamdan emphasized that under the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai has established a robust model for adapting to change and transforming challenges into opportunities. He reiterated the commitment to fostering strong public-private partnerships and maintaining close engagement with the community and business sector.

Support for Education Sector

In the education sector, private institutions registered with the Knowledge and Human Development Authority (KHDA) will benefit from deferred and installment-based payments for license renewal fees and fines. Additionally, early childhood facilities will be exempt from these fees as well as from Dubai Municipality charges.

The Knowledge Fund has also introduced a series of support measures for affiliated institutions. Early childhood centers will receive partial rent exemptions and extended rent-free periods for facilities currently under construction. Educational institutions will enjoy broader support, including partial or full exemptions from guarantee insurance requirements for canceled contracts, suspension of contractual penalty clauses, a freeze on scheduled rent increases upon renewal, and deferred rental payments.

Cultural Sector Initiatives

In the cultural sector, establishments under the Dubai Culture and Arts Authority will benefit from deferred and installment-based payments for rents and financial obligations. There will also be a reduction in rental fees for temporary spaces used for arts and cultural events, along with an expansion of the temporary import framework for artworks by Dubai Customs.

Tourism Sector Benefits

The tourism sector will see a wide array of exemptions and deferrals for establishments registered with the Dubai Department of Economy and Tourism. These include exemptions from the collection of the Tourism Dirham, sales fees on hotel rooms and restaurants, permit and license fees for holiday homes, and event permit fees. Furthermore, establishments will be exempt from fees related to sales and commercial promotions, and there will be a reduction in fees for tour guides and desert safari activities.

Business Sector Support

In the business sector, the Dubai Department of Finance will reduce the final retention security for supply contracts from 10% to 2% for all companies contracted with government entities. The financial threshold for contracts eligible for exemption from final insurance will be raised from AED 5 million to AED 10 million.

The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licenses by an additional two years for all companies whose memberships expire in 2026. Companies facing temporary business continuity challenges, such as desert safari and camping operators, marina-related businesses, and event management companies, will receive a one-time full exemption from certain fees administered by both the Dubai Department of Economy and Tourism and Dubai Municipality.

Dubai Customs will offer the option to pay outstanding amounts on import customs declarations in installments and will implement an 80% reduction in fines for customs cases.

Transport and Real Estate Measures

For the transport sector, all establishments registered with the Roads and Transport Authority will benefit from deferred payments for passenger activity sectors and exemptions from violations related to the vehicle availability index and arrival time index. In real estate, the validity of building permits for construction projects under the Dubai Municipality will be extended, as will the approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment.

In civil aviation, establishments registered with the Dubai Civil Aviation Authority will see a reduction in renewal fees for civil aviation activity permits and the suspension of late-renewal penalty fees.

Summary of the Support Package

The second package of support will cover various sectors:

Tourism

• Exemption from collection of the Tourism Dirham.
• Exemption from municipal fees on sales of hotel rooms and restaurants.
• Exemption from all permit, postponement, and cancellation fees for events.

Commerce

• Two-year membership license extension for all companies registered in the Mohammed bin Rashid Establishment for Small and Medium Enterprises whose membership expires in 2026.
• Exemption from fees on sales and promotional offers.
• Reduction of the final retention security for supply contracts from 10% to 2%.

Education

• A range of exemptions and facilitations for early childhood centers.
• Deferral and installment of license renewal fees and fines for private educational institutions.

Customs

• Option to pay outstanding amounts on import customs declarations in installments.
• 80% reduction in fines for customs cases.

Other Sectors

• Deferral of payments for transport sectors and exemption from specific fines.
• 50% reduction in fees for renewing civil aviation activity permits.

Source: www.arnnewscentre.ae

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Published on 2026-05-21 14:23:00 • By the Editorial Desk