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Dubai Department Of Economy And Tourism Launches Incentive To Boost Hotel Development

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By Staff Reporter

The Dubai Department of Economy and Tourism (DET) has introduced a new investor incentive programme to accelerate hotel development across emerging destinations in the emirate.

The initiative, approved under Executive Council Resolution No. (68) of 2025 by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, aims to expand Dubai’s hospitality footprint in high-growth areas.

Under the programme, eligible hotels, resorts, and serviced apartments located in Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands will receive a full reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for two years after opening.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said the move marks a new phase in Dubai’s hospitality growth, reinforcing the city’s position as a leading global tourism hub.

“This initiative reflects our continued commitment to public-private partnerships and to expanding Dubai’s diverse accommodation portfolio,”
he said.

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, said the decision underscores the leadership’s vision to strengthen the emirate’s investment climate, while Khalid Al Malik, Managing Director of Dubai Holding, described it as a bold step that enhances Dubai’s global appeal and sustainable growth.

The incentive, open to hotels registered after the resolution’s issuance, supports the goals of the Dubai Economic Agenda D33. Dubai welcomed 12.54 million international overnight visitors in the first eight months of 2025, a 5% increase year on year, with an occupancy rate of 78.5%, among the highest globally.

Applications for the incentive can be submitted to the Dubai Department of Economy and Tourism, which will oversee the review and approval process.

News Source: Emirates News Agency

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