In a proactive step towards enhancing the growth of the hospitality sector, the Dubai Department of Economy and Tourism (DET) has rolled out a comprehensive hotel investor incentive program aimed at fostering development in the city’s evolving tourism areas. This significant initiative follows the Executive Council Resolution No. (68) of 2025, issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.
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According to the newly established policy, investors in hotel properties located in key development regions, such as Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands, are eligible for a full reimbursement of the Dubai Municipality fee associated with room sales and the Tourism Dirham, effective for two years following the hotel’s opening, as reported by WAM.
This incentive exclusively targets new ventures, including hotels, resorts, hotel apartments, and other hospitality projects approved by DET that are registered post the adoption of this resolution.
Strategic expansion to enhance the hospitality ecosystem
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), a branch of DET, praised this initiative as a significant milestone in the development of Dubai’s hospitality landscape.
“The introduction of this hotel incentive program, as directed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, signifies an important advancement in Dubai’s hospitality ecology, broadening its reach in developing areas of the city, while ensuring we sustain our strong tourism growth,” he remarked.
He also commented that this program underscores Dubai’s ongoing commitment to fostering public-private partnerships and diversifying its market strategy, aligning with its overarching goal of becoming the premier global destination for visitors, residents, workers, and investors.
Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South, praised the program’s potential to stimulate private-sector investments, particularly in rapidly transforming areas like Dubai South that are experiencing a blend of residential, commercial, and infrastructure advancements.
“This initiative reflects the forward-thinking vision of our leadership aimed at enhancing the business environment’s competitiveness and nurturing an investment atmosphere that attracts private-sector involvement, which supports our ongoing efforts at Dubai South to create a comprehensive economic ecosystem tailored to the emirate’s burgeoning tourism and urban landscape,” he stated.
Boosting Dubai’s global investment allure
Khalid Al Malik, MD of Dubai Holding, echoed these sentiments, noting that the newly launched incentive reflects Dubai’s capability to consistently introduce visionary and impactful measures that bolster its global standing.
“Dubai’s emergence as a leading global hub results from visionary leadership and audacious initiatives, such as this investor incentive program, which continues to attract investments, encourage innovation, and promote sustainable growth across vital sectors,” he highlighted.
He further emphasized that Dubai Holding remains dedicated to actively contributing to the development of world-class destinations that not only drive foreign investment but also support economic diversification and reinforce Dubai’s status as a future-ready global metropolis.
The timing of this initiative is strategic. Dubai’s tourism sector has experienced consistent growth, welcoming 12.54 million international overnight visitors within the first eight months of 2025, representing a 5 percent increase year-on-year. This follows two successive years of record visitation.
During the same period, hotel activity also surged, achieving 29.03 million occupied room nights, reflecting a 4 percent increase from the previous year, with an impressive occupancy rate of 78.5 percent, one of the highest globally. This figure demonstrates a 2 percentage-point rise compared to the first eight months of 2024.
This growth trajectory, in conjunction with the implementation of the Dubai Economic Agenda, D33, highlights the pressing need to expand Dubai’s hotel facilities into new zones to satisfy future demand.
The DET is responsible for receiving, reviewing, and approving all investor applications linked to the incentive. Projects must comply with licensing and classification regulations as per Decree No. (17) of 2013, governing hotel establishments in Dubai.
Eligibility criteria for the incentive
- Hotel ventures must be licensed at the time of application.
- Properties must commence operations within three years of applying.
- Applications should be submitted using the approved forms and processes of DET.
- Compliance with all conditions is mandatory throughout the two-year benefit period.
Investors can reach out to the DET directly for additional information or to initiate the application process at +971 600 55 55 59.