Dubai offers further support for businesses hit by Iran war

Dubai has announced a second economic incentive programme worth AED1.5 billion ($408 million), just two months after unveiling the first AED1 billion package, to support businesses impacted by the Iran conflict.

The latest offer, approved by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, includes 33 initiatives to be implemented during the next three to 12 months, with each initiative’s timeline to be announced by the respective government entity.

The package covers a range of sectors including tourism, trade and logistics, real estate, construction, education and arts and cultural activities.

Private institutions registered with the Knowledge and Human Development Authority will benefit from the deferral and installment of licence renewal fees and deferral of fines, the UAE state-run Wam news agency reported.

The emirate’s knowledge fund will offer support measures to its affiliated institutions, with early childhood centres benefiting from partial rent exemptions and extended rent-free periods for sites currently under construction.

The Dubai Culture and Arts Authority will provide rent deferrals and installment plans for financial obligations, a reduction in rental fees for temporary spaces used to host arts and cultural events and an extension of the temporary import duties for artworks.

The Department of Economy and Tourism will exempt the collection of the tourism dirham and sales fees on hotel rooms and restaurants, waive permit and licence fees for holiday homes, as well as event permit fees.

The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend licences by two additional years for all companies whose memberships expire in 2026.

Further reading:

• Dubai set for swift rebound if conclusive peace achieved
• A Dubai property launch party in the shadow of war
• Dubai property sellers slashing millions off prices

Companies facing temporary business continuity challenges, including desert safari and camping operators, marina-related businesses, aviation-related activities, drone and fireworks companies, and event management companies, will receive a one-time full exemption from certain fees administered by both the Dubai Department of Economy and Tourism and Dubai Municipality.

Establishments registered with the Roads and Transport Authority will benefit from the deferral of payments for passenger activity sectors.

The validity of building permits for construction projects under the Dubai Municipality will be extended, along with the one-year extension for approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment.

Companies registered with the Dubai Civil Aviation Authority will benefit from a reduction in renewal fees for civil aviation activity permits and suspension of late-renewal penalty fees.

These incentives will enable the government to identify challenges facing businesses, particularly small, medium, and emerging enterprises, and to design targeted initiatives that address current and future needs, Wam reported.