Post by : Bianca
Haleem
Sheikh Hamdan bin Mohammed Al Maktoum has introduced a substantial economic assistance initiative valued at AED1.5 billion aimed at bolstering key sectors and businesses in Dubai. This latest package, alongside the AED1 billion plan launched in late March, brings the total economic support over the past two months to AED2.5 billion.
Comprising 33 unique initiatives, the new measures will roll out over the coming three to 12 months and encompass vital areas such as tourism, trade, logistics, education, construction, transport, culture, customs, civil aviation, and real estate.
According to His Highness, this decision aligns with Mohammed bin Rashid Al Maktoum's vision to strengthen Dubai’s economic landscape and aid businesses amidst evolving market conditions. He emphasized Dubai's commitment to collaborate closely with the private sector to enhance economic growth and seize new opportunities.
Support for Education and Early Childhood Sector
Private educational institutions registered with the Knowledge and Human Development Authority (KHDA) will benefit from relief measures such as delayed licence renewal fees, installment payment capabilities, and deferred penalties.
Additionally, early childhood centres acknowledged by KHDA will enjoy exemptions from licence renewal fees, fines, and Dubai Municipality market fees.
The Knowledge Fund has also introduced new support mechanisms, including partial rent exemptions and extended rent-free periods for centres currently under development. Educational institutions will have the advantage of delaying rental payments, pausing penalty clauses, and gaining waivers on insurance requirements for cancelled contracts.
Support for Arts, Culture, and Tourism
Businesses operating within the Dubai Culture and Arts Authority will experience deferred rental payments and reduced financial obligations. Rental rates for temporary spaces designated for art and cultural events will also see a decrease.
Tourism and hospitality enterprises registered with the Dubai Department of Economy and Tourism will obtain numerous exemptions and fee reductions including waivers for Tourism Dirham collections, hotel and restaurant sales taxes, holiday home permits, and event permit fees.
The assistance package additionally features lowered fees for tour guides and desert safari activities, alongside deferrals on e-link fees and hotel classification fees.
Business and SME Assistance
The Dubai Department of Finance will reduce the retention security for government supply contracts from 10% to 2%.
Furthermore, the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development is set to extend membership licenses by two extra years for companies whose licenses expire in 2026.
Various businesses facing operational hurdles—including desert safari operators, camping firms, marina-related companies, aviation endeavors, drone businesses, fireworks ventures, and event management enterprises—will benefit from a one-time full exemption from select government fees.
Customs and Transport Policies
Dubai Customs has announced that businesses can settle outstanding import customs dues through installment payments, while customs fines will be cut by 80%.
Companies registered with the Roads and Transport Authority will receive deferred payments and exemptions from certain vehicle-related violations.
Real Estate and Civil Aviation Advantages
Dubai Municipality will prolong the validity period of building permits for construction initiatives. Housing construction loan approvals for UAE nationals under the Mohammed bin Rashid Housing Establishment will also receive a one-year extension.
Entities registered with the Dubai Civil Aviation Authority will enjoy reduced renewal fees for aviation permits and exemptions from late-renewal penalties.
Dubai authorities have stated that the timelines for the execution of all incentives will be communicated by the respective government departments at a later date.
The government reiterated that these initiatives reflect Dubai's constant efforts to monitor economic conditions, assist businesses—especially small and medium enterprises—and ensure economic resilience and growth.
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