In a major step to stimulate growth in its tourism and hospitality sector, Dubai has launched a new investment incentive initiative under the directive of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.

The initiative, established through Executive Council Resolution No. (68) of 2025, offers full reimbursement of key government fees for newly licensed hotel establishments in select high-growth areas across the city. This move is part of Dubai’s broader economic strategy to meet growing tourism demands while encouraging targeted investments in underdeveloped yet high-potential zones.

Key Incentives

Under the new programme, hotel establishments that are licensed after the issuance of this decision and located within the specified areas will be eligible to receive:

• 100% refund of the Dubai Municipality fee on room sales

• 100% refund of the Tourism Dirham fee

• The incentive will be applicable for two years starting from the date the hotel opens and begins receiving guests

Targeted Development Zones

The incentive scheme focuses on four main areas experiencing rapid development:

• Dubai South

• Palm Jebel Ali

• Dubai Parks

• Dubai Islands

These zones have been identified as critical to the future growth of the city’s tourism infrastructure, in line with the objectives of the Dubai Economic Agenda D33.

Strategic Vision

The move comes as part of Dubai’s ongoing efforts to diversify its economy and strengthen its global position as a leading tourism hub. In the first eight months of 2025 alone, Dubai welcomed over 12.5 million international visitors—a 5% increase compared to the same period the previous year. Hotel occupancy also reached an impressive average of 78.5%, highlighting the need for expanded hospitality offerings.

By encouraging development in emerging areas, Dubai aims to distribute tourism more evenly across the emirate, reduce pressure on central zones, and provide more options for international visitors.

Statements from Key Officials

Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, emphasized that the new incentives are designed to support the next phase of growth in Dubai’s hospitality ecosystem. He noted that the initiative will enhance the city’s capacity to sustain high tourism growth rates while offering diversified accommodation choices.

Khalifa Al Zaffin, CEO of Dubai South, praised the decision as a major boost for the region, which is seeing rapid progress in both residential and commercial developments. He highlighted the move as a clear example of Dubai’s proactive approach in creating a competitive and investor-friendly business environment.

Khalid Al Malik, Managing Director of Dubai Holding, described the incentives as bold and visionary. He noted that initiatives like these are key to attracting high-quality investment, promoting innovation, and supporting sustainable economic development across core sectors.

Conditions for Participation

To qualify for the incentive program, hotel projects must:

• Be located within the designated zones

• Be licensed and classified by the Dubai Department of Economy and Tourism

• Begin guest operations within three years from the date of application

• Comply with the licensing framework established under Decree No. (17) of 2013

• The benefits can only be enjoyed for a maximum of two years and are non-renewable

The Department of Economy and Tourism will manage the application process, ensure compliance, and evaluate ongoing eligibility throughout the incentive period.

Looking Ahead

This initiative reflects Dubai’s continued commitment to innovation and sustainable growth in key sectors. By targeting new hospitality developments in rapidly growing areas, the emirate is not only expanding its tourism infrastructure but also reinforcing its global competitiveness.

For investors and developers, the program offers a unique opportunity to enter Dubai’s booming hospitality market with significantly reduced operational costs during the crucial early years of a project. The move also aligns with Dubai’s long-term vision of becoming one of the world’s best cities to live, work, visit, and invest in.

With this strategic incentive, Dubai once again sets the benchmark for visionary economic planning, reinforcing its reputation as a dynamic hub for global investment.