Dubai Introduces Incentive Programme To Boost Hotel Development In Emerging Areas

The Dubai Department of Economy and Tourism (DET) has introduced a new programme to encourage hotel development in emerging areas of the city. This initiative, approved by Executive Council Resolution No. (68) of 2025, was launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. It aims to boost investment in the hospitality sector.

Under this programme, new hotels, resorts, and other approved facilities will receive a full reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for two years post-opening. This applies to establishments in areas like Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, stated: "The launch of this hotel incentive programme, on the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, marks an important new phase in the development of Dubai’s hospitality ecosystem, expanding its footprint in emerging areas of the city, and ensuring we can maintain our strong tourism growth trajectory."

Khalifa Al Zaffin from Dubai Aviation City Corporation highlighted how this initiative will drive investment in key areas like Dubai South. He noted that it aligns with leadership's vision to enhance competitiveness and attract private-sector involvement. This supports efforts to create an integrated economic environment catering to tourism and urban expansion needs.

Khalid Al Malik of Dubai Holding remarked: "Dubai’s rise as a leading global hub is the result of visionary leadership and bold initiatives, such as the investor incentive programme, which continue to attract investment, foster innovation and advance sustainable growth across key sectors." He emphasised that such initiatives strengthen Dubai's hospitality sector and appeal to international investors.

The incentive targets hotels registered after the Resolution's introduction. It aims to draw more investment into Dubai's hospitality scene amid growing demand driven by the ongoing implementation of the Dubai Economic Agenda, D33.

Tourism Growth Statistics

In 2025's first eight months, Dubai saw 12.54 million international overnight visitors—a 5% increase from last year. Hotel occupancy reached 78.5%, with 29.03 million occupied room nights—a 4% rise compared to 2024's same period.

The DET is tasked with handling investor applications for hotel projects under this Resolution. They ensure all conditions are met during the incentive period. Hotels must apply using approved forms and procedures while being licensed under Decree No. (17) of 2013.

Application Process

To benefit from these incentives, hotel establishments must begin operations within three years of application approval. Investors interested in applying can contact DET at +971 600 55 55 59 for further details.

This initiative reflects a strategic approach to bolster tourism infrastructure while maintaining high standards in hospitality services across new growth areas in Dubai.

With inputs from WAM