Sheikh Hamdan Launches Dubai Hotel Incentive Scheme to Boost Development

DUBAI, UAE – October 21, 2025: The Dubai Department of Economy and Tourism (DET) has unveiled a new hotel investment incentive programme designed to stimulate development across key emerging destinations, following Executive Council Resolution No. (68) of 2025 issued by His Highness 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.

Under the new scheme, eligible hotel establishments, including hotels, resorts, and serviced apartments — located in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands will receive a 100% reimbursement of Dubai Municipality fees on room sales and the Tourism Dirham for a two-year period after opening.

Expanding Dubai’s Hospitality Footprint

His Excellency Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said the new programme represents a strategic step toward expanding Dubai’s hospitality ecosystem and reinforcing its position as one of the world’s leading tourism destinations.

“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,” Kazim stated. “It expands our footprint into new areas of the city while maintaining strong tourism growth momentum. Public-private partnerships and a diversified market approach remain at the heart of our strategy to make Dubai the best city to visit, live, work, and invest in.”

Strengthening Investor Confidence

His Excellency Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, welcomed the initiative as a catalyst for greater private sector participation.

“This decision reflects the forward-looking vision of our leadership to strengthen Dubai’s business environment and foster an investment climate that attracts private-sector participation,” he said. “At Dubai South, we continue to build an integrated economic ecosystem that supports the emirate’s growing tourism and urban landscape.”

Khalid Al Malik, Managing Director of Dubai Holding, added:

“Dubai’s rise as a global hub is the result of visionary leadership and bold initiatives such as this investor incentive programme. It reflects Dubai’s proactive approach to strengthening its hospitality sector and enhancing its global appeal to investors.”

Record Tourism Growth in 2025

The incentive comes as Dubai’s tourism industry continues to set records. Between January and August 2025, the city welcomed 12.54 million international overnight visitors, a 5% increase year-on-year, while hotel occupancy averaged 78.5%, among the highest globally. During the same period, Dubai hotels recorded 29.03 million occupied room nights, up 4% compared to 2024.

Implementation and Oversight

The Dubai Department of Economy and Tourism will oversee applications for the new incentive, ensuring that participating establishments comply with licensing and classification requirements under Decree No. (17) of 2013. Eligible hotels must commence operations and begin receiving guests within three years of approval.

This new incentive aligns with the Dubai Economic Agenda (D33) and supports the emirate’s goal of doubling the size of its economy and solidifying its position among the world’s top three global cities by 2033.