Dubai Unveils AED2.5 Billion Economic Support Initiative

Post by : Bianca Suleiman

His Highness Hamdan bin Mohammed Al Maktoum has sanctioned a new economic aid package amounting to AED1.5 billion aimed at bolstering key sectors within Dubai. This latest allocation complements a prior AED1 billion initiative revealed in late March, bringing the cumulative economic assistance to AED2.5 billion in just two months.

The newly introduced package comprises 33 initiatives, set to roll out over the next three to twelve months, addressing critical sectors such as tourism, trade, logistics, education, construction, transport, culture, customs, civil aviation, and real estate.

His Highness emphasized that this decision resonates with the vision of Mohammed bin Rashid Al Maktoum to reinforce Dubai’s economy and assist businesses amidst evolving economic dynamics, underscoring the ongoing collaboration with the private sector to foster growth opportunities.

Support for Educational Institutions and Early Childhood Services

Private educational institutions registered with the Knowledge and Human Development Authority (KHDA) will benefit from deferred license renewal fees, installment payment options, and postponed penalties.

Early childhood centers registered with KHDA will also be exempt from license renewal fees, fines, and market fees imposed by the Dubai Municipality.

The Knowledge Fund has launched additional support measures, including partial rent waivers and extended rent-free periods for centers still being built. Educational institutions will gain from delays in rental payments, the pausing of penalty clauses, and exemptions from insurance requirements for canceled contracts.

Assistance for Arts, Culture, and the Tourism Sector

Businesses linked to the Dubai Culture and Arts Authority will experience deferred rental payments and financial obligations. Rental costs for temporary cultural and artistic venues will also see reductions.

Tourism and hospitality firms recognized by the Dubai Department of Economy and Tourism will benefit from numerous exemptions and reduced charges, including those for the Tourism Dirham, hotel and restaurant sales fees, holiday home permits, and event permits.

Moreover, the package offers reduced fees for tour operators and desert safari services, alongside deferred e-link and hotel classification fees.

Business and SME Assistance

The Dubai Department of Finance will decrease the retention security for government supply contracts from 10% to 2%.

The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will prolong membership licenses for companies with expirations set for 2026.

Various businesses experiencing operational hardships—desert safari operators, camping businesses, marina enterprises, and those involved in aviation, drones, fireworks, and event management—will receive a one-off exemption from selected government fees.

Customs and Transportation Provisions

Dubai Customs has stated that businesses can now settle overdue customs payments in installments, with a significant 80% reduction in fines.

Entities registered with the Roads and Transport Authority will enjoy deferred payment options and can be exempt from certain vehicle-related infringements.

Real Estate and Aviation Benefits

Dubai Municipality will extend the validity of building permits for ongoing construction projects. Additionally, housing loan approvals for UAE nationals under the Mohammed bin Rashid Housing Establishment will receive a one-year extension.

Businesses registered with the Dubai Civil Aviation Authority will also benefit from lowered renewal fees for aviation permits, alongside waivers from late-renewal penalties.

Relevant departments will provide separate announcements concerning the implementation schedules for all initiatives.

Dubai authorities conveyed that these actions form part of ongoing efforts to evaluate economic situations and support businesses, especially small and medium enterprises, while reinforcing economic stability and growth prospects.

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