Dubai has introduced economic support measures valued at 1 billion dirhams ($272.26 million) aimed at bolstering the business sector. These initiatives will commence on April 1 and remain in effect for three to six months, as announced by the Dubai Crown Prince on Monday.
The package is designed to increase the flexibility of Dubai’s economy, enhance preparedness, and assist businesses and families in managing the current challenging economic environment. This move comes as Gulf states face economic instability due to Iran’s aerial assaults and the closure of the Strait of Hormuz, triggered by US and Israeli strikes starting February 28.
These attacks have targeted oil-rich states and their hydrocarbon infrastructure, while Iran’s blockade of the Strait of Hormuz—a vital shipping lane responsible for about 20% of global crude oil and liquefied natural gas transport—has severely disrupted Gulf economies and undermined their reputation as secure hubs for business and investment.
In a significant development, Dubai’s media office confirmed the approval of the AED 1 billion support package aimed at helping individuals, families, and businesses navigate these extraordinary circumstances. The statement emphasized that this initiative reflects Dubai’s long-term government planning and steadfast dedication to its citizens and residents.
Recent data indicates Dubai’s economy grew by 6.4 percent in the fourth quarter of 2025, updated GDP figures.
The support package includes deferral of government fees for three months to ease financial burdens. Hotels will be permitted to delay full payment of sales fees and the Tourism Dirham, while customs data grace periods will be extended from 30 to 90 days.
Additionally, new measures have been introduced to simplify the issuance and renewal of residency permits, facilitating skilled professionals’ ability to live and work in Dubai.
Under the Virtual Warehouses Initiative managed by Dubai Customs, temporary imports such as artwork will benefit from exemptions on customs duties and financial guarantees. This scheme suspends duties on private artworks for up to three years, removes geographical restrictions, and enables digital tracking via virtual systems. This initiative expands upon the earlier “Art Flow” pilot project and aims to streamline the movement of high-value goods.
Furthermore, the Health and Safety Strategy for Workers’ Accommodation sets ambitious targets to guarantee full access to essential services and compliance with health and safety standards by 2033. This strategy aligns with the Dubai 2040 Urban Master Plan and International Labour Organization guidelines, aiming to enhance living and working conditions for workers while supporting sustainable urban development.
In a recent Dubai Executive Council meeting, Hamdan bin Mohammed approved these economic incentives, underscoring the emirate’s proactive approach to mitigating the economic fallout from regional tensions.
