Dubai’s upping its game. Again! And this time its with a shiny new incentive programme for hotel investors, courtesy of the Dubai Department of Economy and Tourism (DET).
The move, hot on the heels of Executive Council Resolution No. (68) of 2025 issued by H.H. 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, is set to turbo-charge hotel development across the city’s next big growth zones.
100% fee rebate
Yes, you read that right! Under this new initiative, qualifying hotels can enjoy a full 100% reimbursement on both the Dubai Municipality fee on room sales and the Tourism Dirham for a full two years after opening. The rebate is open to new hotels, resorts, hotel apartments and approved hospitality facilities within Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands. These areas are all tipped to be the next hotspots on the Dubai map.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (part of DET), couldn’t have put it better:
“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.”
A win-win for both investors and the city
There’s no doubt this new scheme is all about building momentum. With the city’s Economic Agenda D33 powering ahead, this investor-friendly move will help to meet rising visitor demand while keeping Dubai firmly in the global spotlight as a leading destination for hospitality investment.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, was quick to praise the move, commenting:
“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.”
Khalid Al Malik, Managing Director of Dubai Holding, echoed the sentiment with equal enthusiasm:
“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.
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.”
Skyrocketing numbers
It’s not all talk, either. In just the first eight months of 2025, Dubai welcomed 12.54 million international overnight visitors, a 5% year-on-year jump following two years of record-breaking arrivals. The city’s hotels clocked 29.03 million occupied room nights, up 4% year-on-year, with an occupancy rate of 78.5%, one of the highest in the world. Clearly, the demand is there, and growing.
How to get in on it
Interested? Here’s how it works: the Dubai Department of Economy and Tourism will handle applications from investors, review eligibility, and ensure all conditions are met for the duration of the incentive period.
To qualify, hotel establishments must:
- Apply using DET’s approved forms and procedures.
- Be licensed and classified under Decree No. (17) of 2013 (Concerning the Licensing and Classification of Hotel Establishments in the Emirate of Dubai).
- Begin operations and welcome guests within three years of applying.
Only hotels registered after the new Resolution came into effect will be eligible, meaning it’s the first movers who will reap the rewards.
So early bird hotel investors, this is one incredible red carpet Dubai’s rolling out (again) as we look forward to the emirate’s next chapter of hospitality success.
Hotel investors can reach out to the Dubai Department of Economy and Tourism at +971 600 55 55 59 for info on applying for the incentive.
