The Dubai Department of Economy and Tourism (DET) has launched a powerful new incentive programme aimed at driving hotel development in fast-growing areas
The Dubai Department of Economy and Tourism (DET) has unveiled a major new investor incentive programme aimed at accelerating hotel development in key emerging districts across the emirate. The initiative, backed by Executive Council Resolution No. (68) of 2025, was 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.
The newly introduced programme offers 100% reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for a period of two years following the opening of qualifying hotel establishments. The incentive is targeted at new hotel projects in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands — all designated as high-potential growth zones.
The initiative is a strategic move to expand Dubai’s hospitality footprint and support the emirate’s Dubai Economic Agenda, D33, which seeks to solidify its position as one of the world’s top three global cities.
Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said:
“The launch of this hotel incentive programme, on the directives of His Highness Sheikh Hamdan, marks an important new phase in the development of Dubai’s hospitality ecosystem. By expanding our footprint in emerging areas, we aim to sustain the city’s strong tourism growth trajectory.”
He added that public-private partnerships and a diversified tourism offering remain central to Dubai’s strategy to be the best city in the world to visit, live, work, and invest in.
High-Impact Zones and Investment Potential
The programme is expected to act as a significant catalyst for hospitality investment in areas undergoing rapid urban and infrastructure development.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, praised the initiative for its strategic alignment with Dubai’s long-term vision:
“This decision reflects the leadership’s commitment to strengthening the competitiveness of the business environment and fostering a climate that attracts private-sector participation. At Dubai South, we’re building an integrated ecosystem that meets the emirate’s evolving tourism and urban needs.”
Khalid Al Malik, Managing Director of Dubai Holding, echoed these sentiments, highlighting the importance of bold, visionary programmes in enhancing Dubai’s global investment appeal:
“This initiative is a testament to Dubai’s proactive approach to sustainable growth and a dynamic hospitality landscape. Dubai Holding is proud to support this progress through world-class destinations that reinforce the city’s position as a global hub.”
Strong Tourism Growth in 2025
The initiative comes as Dubai continues to record impressive tourism figures. In the first eight months of 2025, the city welcomed 12.54 million international overnight visitors, a 5% year-on-year increase. Hotel occupancy also remained high, with 29.03 million occupied room nights, up 4% compared to the same period in 2024, and an average occupancy rate of 78.5% — among the highest globally.
Programme Conditions and Application Process
To qualify for the incentive, hotel establishments must:
- Be newly registered after the issuance of the Resolution.
- Operate in one of the designated areas: Dubai South, Palm Jebel Ali, Dubai Parks, or Dubai Islands.
- Be licensed and classified under Decree No. (17) of 2013 concerning hotel establishment licensing in Dubai.
- Commence operations and receive guests within three years of applying.
The DET will be responsible for receiving and reviewing all applications, ensuring that the conditions are met throughout the benefit period.
This incentive programme is expected to play a pivotal role in shaping Dubai’s next phase of hospitality expansion, enabling the city to meet rising demand and maintain its position as a global tourism leader.
