Dubai has unveiled a major hotel investor incentive programme offering 100 per cent refunds on key municipal and tourism fees for two years after opening.
The move targets new hotel projects in Dubai South, Palm Jebel Ali, Dubai Parks and Dubai Islands.
The Department of Economy and Tourism (DET) launched the hotel investor incentive to stimulate hospitality development in future high-growth areas across the emirate.
The initiative follows the issuance of Executive Council Resolution No. (68) of 2025 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council.
Dubai hotel offers
Under the decision, qualifying hotels will be reimbursed 100 per cent of the Municipality fee on room sales and the Tourism Dirham for two years after opening.
The incentive applies to new hotels, resorts, hotel apartments and other DET-approved facilities located in the designated areas.
Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, said the programme marks “an important new phase in the development of Dubai’s hospitality ecosystem”, expanding its reach into emerging districts while sustaining the city’s tourism growth trajectory.
He added that public-private partnerships and a diversified market approach remain central to Dubai’s tourism strategy, reinforcing its ambition to be “the best city to visit, live, work and invest in.”
Investors welcome initiative
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation, said the decision will strengthen investor confidence, particularly in Dubai South, which continues rapid residential and commercial expansion.
Khalid Al Malik, Managing Director of Dubai Holding, described the initiative as a “bold move” reflecting Dubai’s visionary leadership and proactive approach to attracting international capital and driving sustainable sector growth.
The incentive applies only to hotels registered after the Resolution’s introduction and is expected to draw further investment as Dubai implements the Economic Agenda D33.
Between January and August 2025, Dubai welcomed 12.54m international overnight visitors, a 5 per cent year-on-year increase, while hotels logged 29.03m occupied room nights, up 4 per cent from 2024.
The city’s occupancy rate reached 78.5 per cent, among the world’s highest, rising two percentage points over the same period last year.
Application and eligibility
The Department of Economy and Tourism will manage applications and verify compliance throughout the incentive period.
Eligible establishments must be licensed and classified under Decree No. (17) of 2013 Concerning the Licensing and Classification of Hotel Establishments in the emirate, begin operations within three years of applying, and maintain compliance for the duration of the benefit.
The initiative aligns with the emirate’s long-term ambition to diversify its economy, expand visitor capacity, and reinforce its reputation as a global tourism and investment hub.
By stimulating hotel development in newly master-planned areas, it supports sustainable growth under the D33 agenda and enhances the emirate’s competitiveness worldwide.
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