Dubai Unveils Investor Incentives to Boost Hospitality Development

Dubai's Department of Economy and Tourism launches a new incentive program aimed at boosting hotel development in strategic city locations. Investors can receive a two-year reimbursement on room sales fees, promoting growth in areas like Dubai South and Palm Jebel Ali. This initiative supports Dubai's ongoing tourism expansion efforts.

Dubai is taking a significant step forward in expanding its hospitality industry. The Dubai Department of Economy and Tourism has launched an ambitious incentive program designed to encourage hotel development in key areas of the city. This initiative aligns with Executive Council Resolution No. (68) of 2025, approved by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, promising a full reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for two years.

This strategic move targets new hotels, resorts, and other approved accommodations in locations such as Dubai South, Palm Jebel Ali, and the Dubai Islands. Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, emphasized that this program signifies a crucial development phase for Dubai's hospitality ecosystem, expanding its footprint in emerging city areas.

Echoing this sentiment, Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, remarked on the program's capacity to attract investments to the rapidly evolving hospitality sector, paving the way for more robust private sector participation. Meanwhile, Khalid Al Malik of Dubai Holding noted the plan's alignment with Dubai's vision of being a leading global hub, affirming its commitment to economic diversification.

The initiative is poised to address the growing demand in Dubai's hospitality industry, which recorded 12.54 million international overnight visitors in the first eight months of 2025, an increase from the previous year. Hotel establishments aiming to benefit from this initiative must adhere to stringent licensing and operational requirements as outlined by the Dubai Department of Economy and Tourism.

(With inputs from agencies.)