The Dubai Department of Economy and Tourism (DET) has introduced a new incentive programme aimed at encouraging hotel investment in the city’s emerging high-growth areas. The move follows the approval of Executive Council Resolution No. (68) of 2025 by 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.
Under the programme, eligible hotel operators will receive a full reimbursement of Dubai Municipality fees on room sales and the Tourism Dirham for two years after their opening. The scheme applies to new hotels, resorts, hotel apartments, and other tourism facilities endorsed by DET, located in areas including Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing under DET, said: “This hotel incentive programme, launched under the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, represents a significant step in expanding Dubai’s hospitality ecosystem into emerging city areas, helping sustain strong tourism growth.
“Our approach continues to prioritise public-private partnerships and market diversification. This initiative underlines our commitment to enhancing world-class infrastructure and broadening our accommodation portfolio, reinforcing Dubai as a premier destination to visit, live, work, and invest in.”
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, welcomed the initiative, emphasising its potential to boost hospitality investments in key areas such as Dubai South, which is seeing rapid growth in residential and commercial projects.
He added: “This decision demonstrates the leadership’s forward-looking vision to strengthen business competitiveness and create an investment-friendly environment. It supports our efforts to develop Dubai South as an integrated economic ecosystem that caters to the emirate’s growing tourism and urban development needs.”
Khalid Al Malik, Managing Director of Dubai Holding, said: “Dubai’s emergence as a global hub is driven by visionary leadership and strategic initiatives, including this investor incentive programme. Such measures continue to attract investment, encourage innovation, and promote sustainable growth across vital sectors.
“Dubai Holding is proud to contribute to this progress by creating exceptional destinations that draw international investment, support economic diversification, and enhance Dubai’s standing as one of the world’s most dynamic and forward-looking cities.”
The incentive, available exclusively to hotels registered after the resolution’s introduction, is expected to drive further investment into Dubai’s hospitality sector, helping meet rising demand under the Dubai Economic Agenda, D33. In the first eight months of 2025, Dubai welcomed 12.54 million international overnight visitors, a 5% increase year-on-year, following consecutive record visitation in the previous two years. During the same period, the city recorded 29.03 million occupied hotel room nights, up 4% year-on-year, with an occupancy rate of 78.5%—one of the highest among major global cities and an improvement of two percentage points from the same period in 2024.
