Dubai has just announced a AED 1 billion business support package — and if you operate a business setup in Dubai mainland or in any of the free zones here, this could directly impact your cash flow in the coming months.
A AED 1 billion ($272 million) support package for Dubai’s business sector has been approved by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Deputy Prime Minister.
The support package was launched on April 1 and aims to act as a stimulus for businesses over the next three to six months.
This comes at a time when Dubai’s business sector is going through one of its toughest periods in recent history. However, instead of just waiting for things to get better, Dubai’s leadership has taken a very proactive approach to the situation.
So, if your business is in Dubai, this is what you need to know.
Why the Package is Introduced?
Industries such as tourism, hospitality, and aviation have seen a decline since the ongoing geopolitical developments in the region on February 28. The AED 1 billion package is a direct result of these challenges. It is a government-backed initiative to ensure that businesses remain liquid, jobs are secured, and investors are reassured.
His Highness Sheikh Hamdan stated that “The support package is to boost confidence in all sectors of our private sector, as well as supporting individuals, families, and businesses.
Our message is clear: ”Dubai remains committed to supporting individuals, families, and businesses with confidence and stability.”
The situation that Dubai finds itself in is actually a robust economy. Dubai’s GDP has increased to AED 937 billion, with a growth rate of 5.4 percent in 2025.
The package is not a bailout; it is a proactive initiative to ensure that Dubai continues to grow.
What does the Package include?
The AED 1 billion support package comprises a range of initiatives to address the financial challenges faced by companies, improve liquidity, as well as facilitate trade and investments.
Here are some of the key components of the support package:
1. Government Fee Deferrals (3 Months)
The initiative includes the deferral of a range of government fees for three months, including measures allowing hotels to postpone paying 100% of the sales fees and Tourism Dirham to enhance liquidity in the hospitality and tourism sectors. It’s immediate cash flow relief for one of Dubai’s most vital industries.
2. Extended Customs Grace Periods
Customs data grace periods will be extended from 30 days to 90 days, with the possibility of further extension, giving importers and exporters significantly more breathing room to manage documentation and compliance.
3. The Virtual Warehouses Initiative
The Virtual Warehouses Initiative, overseen by Dubai Customs, will in its first phase facilitate temporary imports into Dubai to ensure the smooth flow of goods, including artwork. Under a new temporary admission declaration, the scheme exempts imports of artwork from customs duties and financial guarantees and suspends duties on private artworks for three years. This is a major win for galleries, art dealers, and high-net-worth collectors operating in Dubai.
4. Streamlined Residency Permits
The initiative will also streamline the issuing and renewing of residency permits, making it easier for talent to live and work in Dubai. For businesses trying to retain or attract skilled employees during uncertain times, this reduces a significant administrative hurdle.
5. The Dubai Empowerment Strategy
The Dubai Empowerment Strategy is geared towards creating thousands of job opportunities in the emirate, raising living standards, strengthening financial stability and promoting sustainable employment among Emirati families. This longer-term pillar ensures the package isn’t just crisis management — it’s also building for the future.
6. Workers’ Health and Safety Strategy
A new Health and Safety Strategy for Workers’ Accommodation was also approved as part of the package, reflecting the government’s commitment to protecting the workforce at every level.
Who Qualifies? Sector by Sector
The package is comprehensive in its coverage, with the initiative clearly aiming to help alleviate financial stress for companies, thus boosting liquidity and supporting trade and investment in various sectors across the Emirates.
A breakdown of who benefits from this package is as follows:
Hotels & Hospitality
This sector is getting the most direct support from this package. The full deferral of hotel sales fees and Tourism Dirham for a period of three months is clearly targeted at hotels that have seen reduced occupancy during this regional disruption.
Import/Export & Trading Companies
The 90-day customs grace period is a direct support to trading companies, importers/exporters, and logistics companies operating through Dubai’s ports.
Art & Luxury Goods
The Virtual Warehouses Initiative is a sector-specific support for this niche sector. The suspension of duty on private artworks for a period of three years and the removal of geographical restrictions are unprecedented benefits for this sector.
SMEs and General Businesses
The deferment of fees owed to the government is a relief measure for all SMEs and general businesses with registration in Dubai. All businesses that pay fees to the government will benefit.
Employers Hiring or Relocating Staff
The streamlined residency permit process is a relief measure for any employer with staff or operations in Dubai.
Emirati Nationals & Families: The Dubai Empowerment Strategy specifically targets Emirati families through job creation and financial stability programs aligned with the Dubai Social Agenda 33.
How long is the support available?
The measures will be rolled out from April 1 over the next three to six months. This means the window to take advantage of fee deferrals and customs extensions is open now — but it won’t last indefinitely.
Businesses should review their fee schedules and customs obligations immediately to understand where they can apply for deferrals.
The Bigger Picture: Dubai’s Economy is Built to Endure
This package isn’t just emergency relief — it’s a statement of intent. His Highness Sheikh Hamdan reaffirmed confidence that Dubai will emerge from the current phase stronger, more competitive, and firmly positioned as a leading global economic hub.
That confidence is grounded in data. Dubai’s GDP growth of 5.4% in 2025, record-breaking real estate transactions during Ramadan 2026, and continued foreign investor interest all point to a city that absorbs shocks without losing momentum.
For business owners, the message from the top is clear: Dubai is not retreating. The government is doubling down on its commitment to being one of the world’s most business-friendly destinations — and this AED 1 billion package is the proof.
What Should Businesses Do Right Now?
In case your business is based in Dubai, the following steps should be considered:
- Check the government fee structure
Identify any fees due within the next three months that may be eligible for deferment.
- Contact the customs broker
Discuss the 90-day grace period for customs data
- If the business falls under the hospitality industry, discuss the deferment of Tourism Dirham fees
- If the business falls under the art or high-value goods industry, consider the Virtual Warehouses Initiative with Dubai Customs
- If the business is looking to hire or move staff, consider the residency permit process
- The above information is available on the Dubai Executive Council and Dubai Customs websites. Information is also available on the Dubai Media Office website, as the process is rolled out.
