H.H. Sheikh Hamdan approves second AED 1.5bn economic incentives package

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai's Crown Prince and the UAE's Deputy Prime Minister and Defence Minister, has approved an additional AED 1.5 billion support package for Dubai’s business sector.

It brings the total economic incentives to AED 2.5 billion, with AED 1 billion support approved earlier in March.

In a post on social media platform X, Sheikh Hamdan said the "new package includes 33 initiatives offering facilitation measures ranging from three to 12 months across key sectors including tourism, trade, education, and customs services, further strengthening Dubai’s economic resilience and global competitiveness".

"Guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai has built a model that transforms challenges into opportunities for growth.

"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."

I approved an additional package of economic incentives worth AED 1.5 billion, bringing the total support introduced over the past two months to AED 2.5 billion. The new package includes 33 initiatives offering facilitation measures ranging from three to 12 months across key… pic.twitter.com/Xhr5vYkSB8

— Hamdan bin Mohammed (@HamdanMohammed) May 21, 2026

The second package will cover:

Tourism

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

Commerce

• Two-year membership licences 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 per cent to 2 per cent

Education

• A range of exemptions and facilitations for early childhood centres
• Deferral and instalment of licence renewal fees and fines for private educational institutions

Customs

• Option to pay outstanding amounts on import customs declarations in instalments
• 80 per cent 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