Dubai Approves AED 1 Billion Economic Support Package

Dubai has approved a AED 1 billion economic support package aimed at strengthening business resilience and maintaining stability across key sectors. The decision was made during a meeting of the Executive Council on March 30, chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE. The package takes effect from April 1 and will run for a period of three to six months.

The announcement comes on the back of a strong 2025 for Dubai's economy. The emirate recorded full-year GDP growth of 5.4 per cent, with total output reaching AED 937 billion, and closed the fourth quarter at 6.4 per cent growth — reflecting sustained expansion across trade, tourism, and real estate.

What the Package Covers

The measures are practical and targeted. Businesses across various sectors will benefit from a three-month deferral on a range of government fees, directly improving cash flow during a period of global uncertainty. Hotels and tourism operators can postpone sales fees and Tourism Dirham payments for the same period, easing pressure on a sector closely tied to international travel demand.

For traders and logistics operators, customs clearance grace periods have been extended from 30 to 90 days, giving importers and exporters additional flexibility to manage supply chains without unnecessary penalties. The package also streamlines residency permit issuance and renewal, making it easier for businesses to attract and retain skilled professionals in the emirate.

Sheikh Hamdan framed the package as part of Dubai's broader commitment to its people and private sector. "Our message is clear: Dubai remains committed to supporting individuals, families and businesses with confidence and stability," he said, adding that the emirate's strong institutions position it well to turn current challenges into opportunities.

Additional Initiatives Approved

Three further initiatives were approved at the same session, each addressing a different dimension of Dubai's development agenda.

The Virtual Warehouses Initiative, overseen by Dubai Customs, facilitates temporary imports of goods including high-value artwork. Imports under the scheme are exempt from customs duties and financial guarantees, with duties on private artworks suspended for three years — building on the existing Art Flow pilot and strengthening Dubai's appeal as a destination for high-net-worth trade.

The Dubai Empowerment Strategy, led by the Community Development Authority, supports Emirati families through job placement programmes and home-based entrepreneurship pathways, building on initiatives that have already created over 7,000 employment opportunities.

The Health and Safety Strategy for Workers' Accommodation targets full compliance with safety standards and universal access to essential services across all workers' housing by 2033, in line with the Dubai 2040 Urban Master Plan and International Labour Organisation regulations.

Together, the five approvals from the March 30 session paint a clear picture — a city managing near-term pressures without losing sight of its long-term trajectory. For businesses and investors in Dubai, the direction of travel remains unchanged.

For further insights and comprehensive real estate advisory services, please contact Driven | Forbes Global Properties at +971800374836.