Dubai's AED 1 Billion Stimulus — What Businesses Need to Know

On 30 March 2026, the Executive Council of Dubai approved a series of initiatives empowering individuals and society, promoting trade and investment, enhancing means of measuring economic performance, and safeguarding the workforce. The AED 1 billion package took effect on 1 April 2026 and runs for three to six months, depending on the measure.

Per the announcement, the initiative is designed to ease financial pressures on businesses and individuals across various sectors.

Scope of the Package

Key measures include:

• Hospitality fees: Hotels can postpone paying 100% of the sales fees and Tourism Dirham for three months.

• Licensing fees: Deferral of fees on optional licence services, advertising fees, and local fees on commercial licences administered by the Department of Economy and Tourism (DET). Licence amendment fees may be deferred under a flat AED 500 arrangement.

• Municipal fees: Three-month postponement on staff accommodation housing fees, cleaning service fees, and service improvement fees.

• Customs procedures: Customs data grace periods extended from 30 to 90 days, with the possibility of further extension.

• Residency: Streamlined issuing and renewing of residency permits, making it easier for talent to live and work in Dubai.

Economic Context

The package is positioned alongside continued growth, with Dubai's GDP rising 5.4 percent in 2025 to AED937 billion. The relief is delivered through temporary cost deferrals and regulatory facilitation rather than direct financial assistance — a working capital tool, not a subsidy.

What This Means in Practice

For businesses and investors, the package translates into:

• Lower Entry Costs: Reduced upfront fees on new licences.

• Renewal Savings: Deferred charges on renewals and ongoing service fees.

• Cash Flow Relief: Freed-up working capital from postponed fees.

• Trade Flexibility: Greater timing flexibility on imports, exports, and transit.

• Workforce Agility: Faster, simpler residency processes across mainland and free zones.

Practical Considerations

The measures are time-bound and eligibility varies by initiative. Deferred fees remain payable — finance teams should plan for eventual settlement.

OGMC's Dubai-based team can support businesses operating in the Emirate in identifying applicable deferrals, assessing eligibility, and integrating the relief measures into broader financial and operational planning.