Dubai has introduced an incentive programme for hotel investors in four development zones following Executive Council Resolution No. (68) of 2025, issued 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.
The Dubai Department of Economy and Tourism (DET) will reimburse 100 per cent of the Dubai Municipality fee on room sales and the Tourism Dirham for two years after opening for hotels in Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands.
The programme covers new hotels, resorts, hotel apartments, and other facilities approved by the Dubai Department of Economy and Tourism in these four areas.
New Dubai hotel resolution aims to meet rising tourism demand
“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. Our commitment to public-private partnerships and a diversified market approach continue to be at the heart of our tourism strategy, and this new programme is a testament to our ongoing efforts to further enhance our world-class infrastructure and expand our diverse accommodation portfolio, supporting our goal of making Dubai the best city to visit, live, work and invest in,” Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, part of the Dubai Department of Economy and Tourism in a statement.
The incentive applies only to hotels registered after the Resolution’s introduction and is designed to attract investment into the hospitality sector as Dubai implements the Dubai Economic Agenda, D33.
Dubai welcomed 12.54 million international overnight visitors in the first eight months of 2025, representing a 5 per cent increase year on year. This follows record visitation in the previous two years.
The city’s hotels recorded 29.03 million occupied room nights during the same period, up 4 per cent year on year, with an occupancy rate of 78.5 per cent.
The occupancy rate is one of the highest among major global cities and represents a two percentage point increase compared to the first eight months of 2024.
Focus on high-growth areas
“This decision reflects the forward-looking vision of our leadership to strengthen the competitiveness of the business environment and foster an investment climate that attracts private-sector participation, supporting our ongoing efforts at Dubai South to build an integrated economic ecosystem that meets the needs of the emirate’s expanding tourism and urban landscape,” Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South added.
He praised the initiative’s role in driving investments in the hospitality sector, particularly in Dubai South, which is witnessing development in its residential and commercial projects.
“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. This initiative reflects Dubai’s proactive approach to strengthening its hospitality landscape and enhancing its appeal to international investors,” Khalid Al Malik, Managing Director of Dubai Holding said.
“Dubai Holding is proud to contribute to this progress by developing exceptional destinations that attract global investment, support economic diversification and reinforce Dubai’s position among the world’s most dynamic and future-ready cities,” he explained.
What are the application requirements and process?
The Dubai Department of Economy and Tourism is responsible for receiving, reviewing, and deciding on applications submitted by investors in hotel projects. The department will verify that all conditions continue to be met throughout the period during which the hotels benefit from the incentives.
Hotel establishments must apply to the Dubai Department of Economy and Tourism using approved forms and procedures.
They must be licensed and classified under Decree No. (17) of 2013 Concerning the Licensing and Classification of Hotel Establishments in the Emirate of Dubai at the time of application and throughout the benefit period.
Establishments must start operations and receive guests within three years of applying.
Hotel investors interested in applying for the incentive may contact the Dubai Department of Economy and Tourism on +971 600 55 55 59.
