Dubai’s latest economic stimulus measures are expected to reinforce investor confidence, support business continuity, and accelerate growth across sectors ranging from real estate and construction to tourism, logistics, education, and culture.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum recently approved a new AED1.5 billion economic incentives package comprising 33 initiatives to be rolled out over the next three to 12 months. Combined with the AED1 billion package announced earlier in March 2026, the total value of economic support now stands at AED2.5 billion.
The latest measures are aimed at easing operational costs, improving liquidity, and supporting businesses amid ongoing global inflationary pressures affecting supply chains, logistics, and material costs.
Commenting on the development, Tauseef Khan, Founder and Chairman of Dugasta Properties, said the package reinforces Dubai’s long-term growth strategy and strengthens confidence across key industries.
“The AED 1.5 billion economic incentives package is a strong step that supports Dubai’s ongoing economic growth and keeps momentum across key sectors such as real estate, construction, tourism, trade, and investment.
At a time when global costs remain high, due to rising inflation across materials, logistics, and supply chains, such initiatives play a critical role in reinforcing market stability. This further helps in maintaining momentum across key sectors, including real estate, construction, tourism, trade, and investment.
Dubai’s strength lies in its clear direction and steady approach to growth. The focus remains on creating opportunity, supporting investors, and ensuring that key sectors continue to grow in a stable environment.
At Dugasta Properties, this confidence is reflected in our recent groundbreaking of Al Haseen 6 in Dubai South. We see strong potential in this area, supported by new infrastructure, better connectivity, and growing demand for housing.
Additionally, this announcement further boosts the confidence of developers and investors in the region. We remain grateful to the UAE leadership for their continued efforts in supporting growth in the real estate industry.”
Financial market experts also noted that the measures demonstrate Dubai’s proactive approach to economic management and private sector support.
Vijay Valecha, Chief Investment Officer at Century Financial, said the expanded package reflects a targeted strategy to strengthen business resilience and support SMEs.
“His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has approved Dubai’s new AED 1.5 billion economic incentives package. Together with the AED 1 billion package announced earlier this year in March 2026, the total support now stands at AED 2.5 billion. This move reflects a targeted and proactive policy response aimed at reinforcing business resilience and supporting SMEs.
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.”
Valecha highlighted several key initiatives included in the package, such as fee exemptions and payment deferrals for the tourism and hospitality sector, six-month rent exemptions for commercial and industrial tenants, and a 50% reduction in Dubai Customs fines.
He also pointed to measures supporting SMEs and contractors, including easier licensing procedures, reduced retention guarantees for government contracts, and lower final retention security requirements for supply contracts.
Additional support is expected for private schools, universities, airlines, aviation firms, contractors, and creative industries through fee waivers, deferred payments, and business continuity measures.
“This incentive programme shows Dubai’s approach of rapid intervention, working with both public and private sectors, and staying flexible. By cutting costs, maintaining business confidence, and supporting key sectors, Dubai aims to strengthen its role as a top global hub for trade, tourism, investment, and innovation,” Valecha added.
