Hamdan bin Mohammed Strengthens Dubai’s Economy with AED1 Billion Incentives in Executive Council Meeting
H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister of the UAE, has approved a series of initiatives aimed at empowering individuals and society, promoting trade and investment, and enhancing economic performance metrics. This decision was made during a recent Executive Council meeting attended by key government officials.
Key Initiatives Approved
The Executive Council approved five significant projects and initiatives, including an allocation of AED1 billion in economic incentives aimed at bolstering Dubai’s economy. These initiatives also encompass an updated methodology for measuring the emirate’s GDP, the Virtual Warehouses Initiative, the Dubai Empowerment Strategy, and the Health and Safety Strategy for Workers’ Accommodation.
The decisions reflect the vision of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Vice President, Prime Minister, and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum.
Economic Incentives to Support Growth
The AED1 billion economic incentives will be implemented over a period of three to six months starting April 1, 2026. This initiative is designed to alleviate financial pressures on businesses and individuals across various sectors. Key components include the deferral of government fees for three months, allowing hotels to postpone 100% of sales fees and the Tourism Dirham. Additionally, customs data grace periods will be extended from 30 to 90 days, with the possibility of further extensions.
The initiative aims to streamline the process for issuing and renewing residency permits, facilitating easier access for talent to live and work in Dubai.
Economic Performance and Growth Metrics
The Executive Council also approved the results of Dubai’s economic performance for the fourth quarter of 2025, which indicated a growth rate of 6.4%. For the entire year, Dubai’s GDP grew by 5.4%, reaching AED937 billion. The Council endorsed a comprehensive update to the methodology used for measuring Dubai’s GDP, expanding the scope of economic surveys and enhancing statistical coverage to better reflect actual economic activities.
Virtual Warehouses Initiative
The Virtual Warehouses Initiative, overseen by Dubai Customs, was also approved. This initiative aims to facilitate temporary imports into Dubai, ensuring the smooth flow of goods, including artwork. Under a new temporary admission declaration, imports of artwork will be exempt from customs duties and financial guarantees, with duties on private artworks suspended for three years. The initiative simplifies geographical restrictions and introduces virtual copies of artworks for high-tech tracking.
This builds upon the ‘Art Flow’ pilot project by Dubai Customs, providing significant financial and procedural advantages, thereby reinforcing Dubai’s status as a leading global center for high-value artworks.
Dubai Empowerment Strategy
The Dubai Empowerment Strategy, supervised by the Community Development Authority, was approved to align with the Dubai Social Agenda 33. This strategy builds on the achievements of the Dubai Empowerment Programme, which has already supported 1,200 young Emiratis and created over 7,000 job opportunities.
The strategy focuses on raising living standards, strengthening financial stability, promoting sustainable employment, and fostering social cohesion among Emirati families. It adopts a dual-track approach, offering tailored support for job seekers and individuals pursuing home-based entrepreneurship.
Health and Safety Strategy for Workers
The meeting also approved the Health and Safety Strategy for Workers’ Accommodations, a significant step toward improving living and working conditions for workers in Dubai. By 2033, the strategy aims for 100% access to essential services for workers and full compliance of accommodations with health and safety regulations. This initiative supports the Dubai 2040 Urban Master Plan and aligns with International Labour Organisation (ILO) regulations, reflecting Dubai’s commitment to worker welfare and sustainable urban growth.
As reported by www.emirates247.com.
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Published on 2026-03-31 00:11:00 • By FAME Delivered News Desk