Dubai offers $272m support package for businesses

Dubai will offer economic incentives worth AED1 billion ($272 million) to ease the financial burden on businesses and individuals across various sectors amid the Iran war. 

The announcement comes after the conflict, which began on February 28, spiralled into a broader Middle East conflagration in which Iran has struck civilian and military infrastructure in several countries, including the UAE.

These benefits will be offered during the next three to six months, starting April 1, the Dubai Media Office reported, quoting Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.

The incentives will offer a three-month deferral of various government fees, including deferring payment of 100 percent of hotel sales fees and tourism dirhams, to support liquidity in the hospitality and tourism sectors. 

Customs data grace periods – the additional time allowed by authorities to submit customs information without penalties – will be extended from 30 to 90 days, with the possibility of further extension and full compliance with the applicable tax legislation. 

In addition, the initiative will streamline the issuance and renewal of residency permits, “making it easier for talent to live and work in Dubai”, the media office statement said. No further details were given.

Further reading:

• UAE teachers resilient in face of Iran conflict
• Higher borrowing costs loom for Dubai Inc
• Dubai set for swift rebound if conclusive peace achieved

The executive council, chaired by Sheikh Hamdan, approved the emirate’s economic performance for the fourth quarter of 2025, which grew by 6.4 percent. GDP grew by 5.4 percent, reaching AED937 billion in 2025. 

The UAE, Qatar and Kuwait have announced stimulus packages for banks to spur lending and offset economic damage caused by the conflict.

London’s Capital Economics has forecast that the UAE’s non-oil GDP will expand 1.5 percent this year, assuming the conflict ends within two weeks and economic activity normalises quickly thereafter.

Dubai is home to the bulk of the country’s non-oil economy.