Key sectors, including tourism and hospitality, real estate, trade and customs, SMEs, education, aviation, construction, and arts and culture, will be supported through a range of incentives.
Dubai’s new Dh1.5 billion economic incentive package, aimed at supporting local businesses, is expected to protect jobs and ensure the continuity of key sectors closely linked to everyday life, analysts say.
On Thursday, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, approved a second round of economic incentives worth Dh1.5 billion. Combined with the first Dh1 billion package announced in late March, the total value of incentives introduced in less than two months now stands at Dh2.5 billion.
The incentives have been announced to support key sectors and help offset the impact of regional conflict.
“This package is particularly significant as it goes beyond easing financial and operational pressures on the business community. Its impact extends to job protection, empowering small and medium-sized enterprises, and ensuring the continuity of key sectors closely tied to everyday life, including tourism, trade, education, and customs services. In this way, the economic benefits of these initiatives also translate into social stability by supporting families, strengthening confidence in the labour market, and fostering an environment better equipped for growth and adaptation,” said Dr Raymond Khoury, Partner and Public Sector Practice Lead at Arthur D. Little Middle East.
He added that the wide scope of the initiatives and their varying durations, ranging from three to 12 months, reflect a clear understanding of the differing needs of sectors and their varying capacities for recovery and growth.
“Support directed towards tourism, trade, education, and customs-related activities not only addresses immediate challenges but also enhances the efficiency of the wider economic ecosystem, preserves value chains, and gives companies room to realign their investment and operational priorities.”
Reading the business community well
Ramesh Mahalingam, Governor of IBPC Dubai and Founder and Managing Director of Ideal Capital, said the Dh2.5 billion package across 33 initiatives demonstrates that the government has a strong understanding of the business community and is responding at scale.
“For Indian entrepreneurs, deferred fees and reduced penalties directly free up working capital. But the signal matters as much as the substance. Dubai’s strength has never been in avoiding challenges; it has always been in turning challenges into new cycles of growth and opportunity. This package signals to investors and global businesses that Dubai will continue to move faster than the world, protect enterprise, and strengthen its position as a preferred gateway connecting India, the Middle East, Africa, and the global economy. Investment decisions that were on hold will now move forward,” he added.
Tauseef Khan, Founder and Chairman of Dugasta Properties, said the additional economic package is a strong step that supports the emirate’s ongoing economic growth and maintains momentum across key sectors such as real estate, construction, tourism, trade, and investment.
“At a time when global costs remain high due to inflation in materials, logistics, and supply chains, such initiatives play a critical role in reinforcing market stability. This further helps sustain momentum across key sectors, including real estate, construction, tourism, trade, and investment,” he added.
Vijay Valecha, Chief Investment Officer at Century Financial, said the measures are broad-based and designed to ease operational pressures across sectors, including tourism, trade and logistics, real estate, construction, education, and arts and cultural activities.
