Kamal Ghorui
Dubai has announced a package of economic measures, including incentives worth AED 1 billion, to support businesses and individuals over the next three to six months amid global supply disruptions linked to the ongoing West Asia conflict.The initiatives, approved by the Executive Council of Dubai in a meeting chaired by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, will come into effect from April 1, PTI reported.The measures aim to ease financial pressures across sectors, promote trade and investment, and strengthen workforce support systems as economies grapple with disruptions caused by the war involving the US, Israel and Iran.As part of the package, the government will defer payment of certain fees for three months. Hotels will also be allowed to postpone payment of 100 per cent of sales-related fees and Tourism Dirham for the same period to improve liquidity in the hospitality and tourism sectors.A total of AED 1 billion in economic incentives will be implemented over three to six months starting April 1, 2026.In addition, Dubai will streamline the issuance and renewal of residency permits, making it easier for skilled professionals to live and work in the emirate.“Dubai has earned a reputation for credibility, transparency, and trust among businesses and investors worldwide, and stands ready to meet any challenge through the determination of its people and the strength of its inclusive society,” Sheikh Hamdan said.He added that the Executive Council approved five key initiatives, including the AED 1 billion incentive package, updated GDP measurement methodology, the Virtual Warehouses Initiative, the Dubai Empowerment Strategy, and a new Health and Safety Strategy for Workers’ Accommodation.The health and safety initiative aims to improve living and working conditions, targeting 100 per cent access to essential services and full compliance with safety regulations in workers’ accommodations by 2033. It aligns with the Dubai 2040 Urban Master Plan and International Labour Organization standards.The council also reviewed Dubai’s economic performance, noting a 6.4 per cent growth in the fourth quarter of 2025 and an overall GDP expansion of 5.4 per cent for the year, with the economy reaching AED 937 billion.An updated methodology for measuring GDP has also been approved, expanding survey coverage and improving data accuracy to better reflect economic activity.Meanwhile, the Virtual Warehouses Initiative is expected to facilitate smoother movement of goods through temporary import mechanisms. The scheme allows duty-free import of artworks under specific conditions, removes geographical restrictions, simplifies extensions, and introduces digital tracking.The move is aimed at strengthening Dubai’s position as a global hub for trade, investment and high-value sectors, while providing immediate relief to businesses navigating current economic challenges.
