Post by : Badri Ariffin

Sheikh Hamdan bin Mohammed Al Maktoum has authorized an additional economic support package worth AED1.5 billion aimed at enhancing Dubai's crucial sectors and businesses. This initiative, combined with the earlier AED1 billion package introduced in late March, has raised the total economic aid to AED2.5 billion within just two months.

This new package comprises 33 initiatives that are set to be rolled out over the next three to 12 months. Key areas of focus include tourism, trade, logistics, education, construction, transport, culture, customs, civil aviation, and real estate.

In line with the vision of Mohammed bin Rashid Al Maktoum, the decision aims to fortify Dubai's economy while providing much-needed support to businesses amid evolving economic conditions. Sheikh Hamdan emphasized that Dubai will persist in collaborating closely with the private sector to foster economic growth and open up new avenues.

Support for Education and Early Childhood Sector

Educational institutions recognized by the Knowledge and Human Development Authority will benefit from deferred license renewal fees, payment installations, and waived fines.

In addition, early childhood centers accredited by KHDA will enjoy exemptions from renewal fees, fines, and market fees levied by the Dubai Municipality.

Moreover, the Knowledge Fund has introduced several measures to aid these centers, including partial rent exemptions and extended rent-free periods for facilities currently under construction. Educational institutions will also receive support through deferred rental payments, suspension of penalties, and exemptions from insurance requirements for canceled contracts.

Support for Arts, Culture, and Tourism

Businesses under the Dubai Culture and Arts Authority will see benefits from deferred rents and financial obligations. Furthermore, rental fees associated with temporary art and cultural event spaces will be reduced.

Tourism and hospitality enterprises registered with the Dubai Department of Economy and Tourism will receive several fee waivers and reductions, including exemptions from the Tourism Dirham, hotel and restaurant sales fees, holiday home permit fees, and event permit charges.

This support package also features reduced fees for tour guides and desert safari services, as well as deferred e-link and hotel classification fees.

Business and SME Assistance

The Dubai Department of Finance has adjusted the final retention security on government supply contracts from 10% to 2%.

The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licenses for two additional years for businesses whose memberships are set to expire in 2026.

Various companies facing operational hurdles—this includes desert safari operators, camping firms, marina-related entities, aviation services, drone enterprises, fireworks businesses, and event management organizations—will be granted a one-time full exemption from selected government fees.

Customs and Transport Provisions

Dubai Customs has announced that companies will now be able to pay outstanding import customs dues in installments, and customs fines are to be slashed by 80%.

Firms registered with the Roads and Transport Authority can also take advantage of deferred payment options along with exemptions from certain vehicle-related violations.

Real Estate and Civil Aviation Benefits

Dubai Municipality will prolong the validity of building permits for active construction projects, while housing construction loans for UAE nationals through the Mohammed bin Rashid Housing Establishment will also be extended by one year.

Moreover, companies registered with the Dubai Civil Aviation Authority will receive reduced renewal fees and exemptions from penalties related to late renewals.

Dubai authorities have indicated that the implementation timelines for all these incentives will be released by the respective government departments at a later date.

These initiatives represent part of Dubai's ongoing strategy to assess economic conditions and support businesses, particularly small and medium enterprises, thereby fortifying economic stability and future growth.

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