Sheikh Hamdan approves AED1bn support package for Dubai businesses
Dubai has moved to reinforce business confidence with a AED1bn (US$270m) support package, underlining the emirate’s commitment to sustaining economic growth and supporting the private sector.
Approved by HH 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, the package comes against a backdrop of heightened regional tension following the recent Iran conflict, which has disrupted trade flows, energy markets and business sentiment worldwide.
While Dubai’s economy has remained resilient, the leadership’s response reflects a characteristic willingness to act early – ensuring businesses remain well-supported in a more complex operating environment.
The approach is consistent with Dubai’s long-standing economic model that promotes stability with agility, while reinforcing confidence through decisive policy action.
Key initiatives to bolster economic resilience
The measures were approved during a meeting of The Executive Council on 30 March as part of a broader package of economic and social initiatives.
At its core is AED1bn in incentives to be implemented over a three-to-six-month period starting 1 April. The package includes the temporary deferral of a range of government fees, alongside targeted support for key sectors such as hospitality and tourism, with hotels permitted to postpone 100% of sales fees and the Tourism Dirham.
Additional steps include extending customs data grace periods from 30 to 90 days, improving liquidity for trading businesses, and streamlining residency processes to facilitate the movement of talent.
Alongside these measures, The Executive Council also approved a number of longer-term initiatives, including the Virtual Warehouses Initiative to enhance trade flows, an updated methodology for measuring GDP, and new strategies focusing on workforce wellbeing and social development.
Driving long-term growth
The significance of the package lies in both its timing and its focus. Dubai’s economy continues to perform strongly – with GDP expanding by 5.4% year-on-year (YoY) to reach AED937bn (US$255bn) in 2025 – yet policymakers are clearly focused on maintaining momentum rather than reacting to it.
In practical terms, the measures are designed to ease cashflow pressures and support day-to-day operations across key sectors. For hospitality and tourism – central pillars of Dubai’s economy – the deferral of fees provides immediate breathing space, helping businesses sustain their performance and plan with greater confidence.
More broadly, the initiative reinforces predictability in the market. At a time when parts of the global economy are experiencing volatility linked to geopolitical developments, Dubai’s ability to provide clarity and continuity remains a critical advantage.
A signal of Dubai’s economic strategy
Beyond its immediate impact, the package offers a clear insight into Dubai’s broader economic strategy – one defined by responsiveness, long-term planning and a consistent focus on competitiveness.
The emirate has earned a reputation for successfully deploying targeted, business-friendly measures that strengthen its operating environment while advancing structural priorities.
Initiatives such as the Virtual Warehouses programme reinforce Dubai’s position as a global trade hub, while enhancements to GDP measurement reflect a growing emphasis on transparency and data-led policymaking.
Crucially, the announcement reaffirms Dubai’s commitment to maintaining its position as a trusted global centre for business and investment. By acting swiftly and decisively, the emirate not only supports its business community but also signals to international investors that the city remains open, stable and firmly focused on long-term growth.
