Dubai approved a new 1.5 billion dirham ($410 million) economic support package aimed at easing costs for businesses and strengthening the emirate’s economic resilience amid global uncertainty.
The latest package, approved by Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, includes 33 initiatives spanning tourism, trade, education, transport and customs services, with measures set to remain in place for between three and 12 months.
The announcement brings the total value of economic incentives introduced by Dubai in under two months to 2.5 billion dirhams, following an earlier 1 billion dirham package unveiled in March.
The package was aimed at easing financial pressures stemming from the US-Iran war, improving economic flexibility, and supporting businesses and families amid ongoing economic challenges.
In an X post, Al Maktoum said: “Dubai has built a model that transforms challenges into opportunities for growth.”
He added: “We remain committed to strong public-private partnerships and maintaining close engagement with the community and business sector, taking every decision needed to support society, strengthen economic resilience, and reinforce Dubai’s position as a global economic hub.”
In tourism, the measures provide exemptions from Tourism Dirham collection, municipal fees on hotel room and restaurant sales, and all permit, postponement, and cancelation fees for events.
For the commerce sector, the package offers two-year extensions on membership licenses for small and medium enterprises registered with the Mohammed bin Rashid Establishment.
It also includes exemptions and reductions on sales and promotional offers, as well as a cut in final retention security for supply contracts to 2 percent from 10 percent.
In the education sector, the incentives include exemptions and facilitations for early childhood centers, as well as deferrals and instalment plans for license renewal fees and fines for private educational institutions.
Customs measures allow businesses to pay outstanding import amounts in instalments and provide an 80 percent reduction in fines for customs cases.
The package also offers deferrals for transport sector payments and exemptions from specific fines, as well as a 50 percent reduction in fees for renewing civil aviation activity permits.
In March, the Central Bank of the UAE rolled out a financial resilience package to support banks, including easier access to liquidity, temporary relief on funding and capital buffers, and flexibility for loan classifications.
Source: Arab News