Image credit: WAM/Website
In a strategic move to accelerate hospitality sector growth, the Dubai Department of Economy and Tourism (DET) has launched an ambitious hotel investor incentive programme aimed at boosting development in the city’s emerging tourism corridors. This landmark initiative comes in the wake of Executive Council Resolution No. (68) of 2025, issued 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 of Dubai.
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Under the newly introduced policy, investors in hotel establishments located in key development zones, including Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands, will be eligible for 100 per cent reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham, valid for a period of two years after hotel opening, a WAM report said.
The incentive exclusively applies to new projects, hotels, resorts, hotel apartments, and other DET-approved hospitality developments, that are registered after the implementation of this resolution.
Strategic expansion to fuel hospitality ecosystem
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), a division of DET, hailed the initiative as a defining step in the evolution of Dubai’s hospitality offering.
“The launch of this hotel incentive programme, on the directives of 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,” he said.
He further noted that the programme reinforces Dubai’s enduring commitment to public-private partnerships and a diversified market strategy, aligning with its broader objective to become the world’s leading city to visit, live, work, and invest in.
Commenting on the decision, Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South, praised the initiative’s potential to catalyse private-sector investments, particularly in areas such as Dubai South, which is undergoing rapid transformation with a mix of residential, commercial, and infrastructure developments.
“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,” he said.
Enhancing Dubai’s global investment appeal
Echoing the sentiment, Khalid Al Malik, MD of Dubai Holding, said the new investor incentive exemplifies Dubai’s ability to consistently launch visionary and high-impact initiatives that solidify its global reputation.
“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,” he stated.
He added that Dubai Holding remains committed to playing an active role by developing world-class destinations that not only drive foreign investment but also support economic diversification and affirm Dubai’s positioning as a future-ready global metropolis.
The timing of the initiative is strategic. Dubai’s tourism sector has recorded continued growth, with 12.54 million international overnight visitors welcomed in the first eight months of 2025, marking a 5 per cent year-on-year increase. This builds on two consecutive years of record visitation.
The same period also saw a notable uptick in hotel activity, with 29.03 million occupied room nights, up 4 per cent from the previous year, and an impressive 78.5 per cent occupancy rate, among the highest globally. That figure also reflects a 2-percentage point increase compared to the first eight months of 2024.
This growth trajectory, coupled with the rollout of the Dubai Economic Agenda, D33, highlights the critical need to expand Dubai’s hotel infrastructure into new zones to meet future demand.
The DET has been tasked with receiving, reviewing, and approving all investor applications related to the incentive. Projects must adhere to licensing and classification standards under Decree No. (17) of 2013, which governs hotel establishments in Dubai.
To qualify for the incentive:
- Hotel projects must be licensed at the time of application.
- Properties must begin operations within three years of applying.
- Applications must be submitted via approved DET forms and processes.
- Compliance with all terms is required throughout the two-year benefit period.
Investors may contact the DET directly for further information or to begin the application process at +971 600 55 55 59.
