Dubai has announced a second economic stimulus package worth AED1.5 billion ($408.4 million), expanding support measures to strengthen businesses and boost economic resilience across key sectors in the emirate.

Approved by Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defense of the UAE, and Chairman of The Executive Council of Dubai, the package follows the AED1 billion stimulus announced in late March. Together, the measures bring the total value of incentives introduced over the past two months to AED2.5 billion.

The latest package includes 33 initiatives that will be rolled out over periods ranging from three to 12 months, with implementation timelines to be announced by the relevant government entities. The measures cover sectors including tourism, trade, logistics, education, arts and culture, construction, transport, real estate, and government services.

His Highness said the initiative reflects Dubai’s long-term strategy to adapt to economic challenges while maintaining growth momentum, under the vision of Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

“Dubai has built a distinguished model for adapting to change and turning challenges into opportunities,” he said, adding that collaboration between the public and private sectors remains central to supporting businesses and protecting economic progress.

The education sector will see a range of fee deferrals and exemptions. Private institutions registered with the Knowledge and Human Development Authority will benefit from deferred license renewal fees and fines, while early childhood centers will receive exemptions from license renewal charges, fines, and Dubai Municipality market fees.

Additional support from the Knowledge Fund includes partial rent exemptions for early childhood centers, rent-free extensions for facilities under construction, and deferred rental payments for educational institutions. Institutions will also receive exemptions from certain insurance guarantees and contractual penalties.

Tourism and hospitality businesses registered with the Dubai Department of Economy and Tourism will benefit from exemptions on Tourism Dirham collections, hotel and restaurant sales fees, and holiday home permit fees. Event organizers will also receive exemptions from permit, postponement, and cancellation fees for exhibitions, conferences, and events.

The package also includes fee reductions for tour guides, desert safari activities, and tourism company services.

Support for businesses extends to government procurement and SME development. The Dubai Department of Finance will reduce final retention security requirements for government supply contracts from 10% to 2% and increase the threshold for contracts exempt from final insurance requirements from AED5 million to AED10 million.

Meanwhile, the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development will extend membership licenses by two years for companies whose memberships expire in 2026.

Businesses facing operational disruptions, including desert safari operators, event management firms, marina-related companies, aviation businesses, drone operators, and fireworks companies, will receive one-time exemptions from selected market and municipal fees.

Dubai Customs will also introduce installment payment options for import customs declarations and reduce customs-related fines by 80%.

In transport, companies registered with the Roads and Transport Authority will benefit from deferred payments for passenger transport activities and exemptions from selected operational violations.

The real estate and construction sectors will receive extensions on building permits issued by Dubai Municipality, while approvals for housing construction loans for UAE nationals under the Mohammed bin Rashid Housing Establishment will be extended by one year.

Civil aviation companies registered with the Dubai Civil Aviation Authority will also benefit from reduced permit renewal fees and suspended penalties for late renewals.

Dubai said the measures are part of its ongoing strategy to monitor economic conditions, address challenges facing businesses, particularly SMEs and emerging enterprises, and reinforce the emirate’s position as a resilient and globally competitive economy.