Dubai: The Dubai Department of Economy and Tourism (DET) has unveiled an incentive programme to stimulate hotel development in high-growth areas of the city. This initiative follows the issuance of Executive Council Resolution No. (68) of 2025 by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, endorsing the plan.
According to Emirates News Agency, the programme offers a 100% reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for two years post-opening for eligible hotel establishments. This applies to new hotels, resorts, hotel apartments, and other facilities approved by the DET, located in strategic areas such as Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, emphasized the programme’s significance in expanding Dubai’s hospitality footprint and sustaining its tourism growth. The initiative aligns with the city’s commitment to public-private partnerships and a diversified market approach, aimed at enhancing infrastructure and accommodation offerings.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, lauded the initiative for driving investment in the hospitality sector, particularly in rapidly developing areas like Dubai South. He highlighted the leadership’s vision to foster a competitive business environment and attract private-sector investment, contributing to an integrated economic ecosystem.
Khalid Al Malik, Managing Director of Dubai Holding, recognized the programme as a reflection of Dubai’s proactive approach to strengthening its hospitality landscape. He noted the city’s commitment to attracting investment, fostering innovation, and advancing sustainable growth across key sectors, reinforcing Dubai’s global standing.
The incentive targets hotels registered after the Resolution’s introduction, aiming to bolster investment in Dubai’s hospitality ecosystem to meet growing demand. In the first eight months of 2025, Dubai saw a 5% increase in international overnight visitors, reaching 12.54 million, with hotel occupancy rates among the highest globally.
The DET is tasked with receiving and evaluating investor applications for the incentive, ensuring compliance with the set conditions. Applicants must be licensed and classified under Decree No. (17) of 2013 at the time of application and throughout the benefit period, with operations commencing within three years.
Hotel investors can apply for the incentive through the DET using the approved forms and procedures, with inquiries directed to +971 600 55 55 59.