Question 1

Q. What is the objective of Dubai’s second strategic incentive package?

Accepted Answer

A. Dubai’s second strategic incentive package aims to support the economic, tourism and entertainment sectors, enhance business liquidity and reduce operational costs for companies and establishments during 2026.

Question 2

Q. What is the second incentive package launched by Dubai to support the business community and companies?

Accepted Answer

A. Building on the previously announced AED1 billion package introduced in April 2026, Dubai's Executive Council approved an additional AED1.5 billion package of incentives and initiatives to support the hospitality sector and the wider business community. The second package includes exemptions from event and permit fees, support for hotel establishments, commercial licence renewal facilitations, exemptions for holiday homes and initiatives to support affected businesses and ensure business continuity during 2026.

Question 3

Q. How does Dubai’s second incentive package differ from the first AED1 billion package announced in April 2026?

Accepted Answer

A. The first package primarily focused on short-term postponements and deferrals, including the postponement of Tourism Dirham and hotel sales fees for three months, as well as selected business and licence-related fee deferrals. The second package expands the scope of support through additional exemptions, fee reductions and longer implementation periods across tourism, events, holiday homes, retail promotions, SMEs, government procurement and selected business activities facing temporary continuity challenges.

Question 4

Q. Which sectors and entities will benefit from Dubai’s second incentive package?

Accepted Answer

A. Dubai's second incentive package targets commercial establishments, hotels, event management companies, holiday homes, tourism companies, SMEs and businesses affected by government closure decisions.

Question 5

Q. Will the exemptions under Dubai’s second incentive package be applied automatically?

Accepted Answer

A. Some exemptions under Dubai's second incentive package will be automatically applied through approved systems, while others may require applications or fulfilment of specific conditions according to approved procedures.

Question 6

Q. Do the initiatives under Dubai’s second incentive package cover all economic activities?

Accepted Answer

A. No. The initiatives under Dubai's second incentive package do not cover all economic activities. Some initiatives are dedicated to specific sectors and activities, which are clarified under each initiative.

Question 7

Q. Can businesses benefit from more than one initiative under Dubai’s second incentive package at the same time?

Accepted Answer

A. Yes. Businesses may benefit from multiple initiatives under Dubai's second incentive package, provided they meet the eligibility criteria for each initiative.

Question 8

Q. Which authority is responsible for incentives that are not implemented by Dubai Department of Economy and Tourism?

Accepted Answer

A. Businesses should refer to the relevant authority responsible for each measure. Dubai Department of Economy and Tourism (DET) is responsible for tourism, hospitality, retail, events and licensing-related measures. Dubai Municipality is responsible for municipality-related fee exemptions. The Dubai Department of Finance is responsible for government procurement-related measures. Dubai SME is responsible for SME membership-related support.

Question 9

Q. What support has been announced for government suppliers under Dubai’s second incentive package?

Accepted Answer

A. Under Dubai's second incentive package, the Dubai Department of Finance will reduce the final retention security for supply contracts from 10% to 2% for companies contracted with government entities. It will also raise the financial threshold for contracts eligible for exemption from final insurance from AED5 million to AED10 million.

Dubai Government support for businesses