Dubai allows hotels, businesses to defer fees under new economic measures

Dubai: Dubai has approved a new set of economic measures allowing hotels and businesses to defer key fees for three months, as authorities move to ease short-term cost pressures across the economy.

The measures, announced by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, take effect from April 1, 2026.

They form part of a previously announced Dh1 billion economic incentive package.

Fee deferrals

Hotels will be allowed to postpone paying 100% of sales fees on rooms and food and beverage, as well as the Tourism Dirham, for a period of three months.

The relief applies across all hospitality establishments, including hotels, hotel apartments and holiday homes, and is aimed at easing liquidity pressures in the sector.

Wider measures

The measures extend to companies across multiple sectors, with a three-month deferral introduced on a range of business-related fees.

These include:

• Premium business names

• Licence amendment fees

• Newspaper announcement fees

• Local service fees

• Accommodation fees

• Waste management fees

• Service improvement fees

The deferrals apply to both new licences and renewals. Authorities said businesses will receive an update at the end of the three-month period.

Policy response

Officials framed the rollout as a continuation of Dubai’s responsive economic model.

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), said: “Dubai’s economic model has been built on agility, clarity and cooperation, and the accelerated introduction and implementation of these measures… is a clear demonstration of the decisive leadership our city and nation benefit from.”

He added that the approach reflects “continued engagement with industry” and the ability to “rapidly enact policies that can incentivise growth and solidify resilience.”

Industry feedback

Authorities said the measures were shaped through consultations with the tourism sector.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), part of DET, said: “Over recent weeks, we have been closely engaging with stakeholders across the tourism sector as they navigate through unique challenges.”

He said the incentives reflect industry feedback and will support “growth and momentum for the sector.”

Business flexibility

Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), part of DET, said the measures give companies room to manage near-term priorities.

“By giving businesses extra flexibility over the coming months, we are allowing them to focus on key priorities… to protect the long-term sustainability of their operations,” he said.

The measures sit within a wider economic support package announced earlier this week, which also includes extending customs data grace periods and streamlining the issuance and renewal of residency permits.