Dubai new hotel investment incentive program designed to accelerate hospitality development in emerging districts and support the city’s robust tourism sector.
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Dubai new hotel investment incentive program designed to accelerate hospitality development in emerging districts and support the city’s robust tourism sector.
Dubai new hotel investor incentive program designed to accelerate hospitality development in emerging districts and support the city’s robust tourism sector. The initiative, enacted under Executive Council Resolution No. (68) of 2025 and approved by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, offers eligible new hotels, resorts, and hotel apartments a full 100% reimbursement on Dubai Municipality fees on room sales and the Tourism Dirham fee for two years post-opening.
This programme applies to properties in strategic growth areas including Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands. To qualify, hotels must meet licensing and classification standards set by the Department of Economy and Tourism (DET) and commence operations within three years of application.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, stated that the incentive marks “a significant new phase” in expanding Dubai’s hospitality ecosystem. It reflects Dubai’s continued commitment to public-private partnerships, diversified market approaches, and maintaining the emirate as a premier global destination for tourism, business, and investment.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, expressed confidence that the incentive will boost investor interest in burgeoning areas experiencing rapid residential and commercial growth.
Dubai Holding’s Managing Director Khalid Al Malik described the measure as a “bold, visionary move” that strengthens Dubai’s position as a global economic hub and sustains long-term tourism industry expansion.
Between January and August 2025, Dubai welcomed 12.54 million international overnight visitors, a 5% annual increase, with hotels recording over 29 million occupied room nights and achieving a high 78.5% occupancy rate.
DET will manage application processing, compliance monitoring, and verification throughout the reimbursement period, ensuring the programme supports sustainable, quality hotel growth aligned with the Dubai Economic Agenda D33 and Vision 2071.
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