Dubai is set to introduce economic incentives totalling AED 1B ($272M) to alleviate the financial strain on businesses and individuals as a result of the escalating conflict involving Iran.
This initiative is designed to provide immediate relief amid Iranian UAV and missile attacks on (non-)GCC states. The UAE has been targeted disproportionately contrary to other states.
Economic Incentives
The incentives, announced by the Dubai Media Office and attributed to Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, will come into effect from 1 April and will be available over the next three to six months.
Key components include a three-month deferral of various government fees, notably a complete waiver of hotel sales fees and the Tourism Dirham, aimed specifically at bolstering liquidity in the beleaguered hospitality and tourism sectors.
Furthermore, the initiative will extend customs data grace periods from 30 to 90 days, allowing businesses additional time to submit required customs information without incurring penalties, alongside confirmation of adherence to applicable tax legislation.
The plan also includes measures to simplify the processes for issuing and renewing residency permits, ensuring that talent can more easily reside and work in Dubai.
Economic Performance
The executive council, led by Sheikh Hamdan, recently approved the emirate’s economic performance for the Q4 of 2025, which recorded a growth rate of 6.4%.
The GDP also rose by 5.4%, reaching AED 937B.
The UAE, Qatar and Kuwait have implemented recent stimulus packages designed to enhance bank lending and mitigate against any contagion on the banking sector.
Dubai’s economy is driven by non-oil output with a 6.1% uptick in non-oil output across the UAE (FY25).
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