Dubai announces 1 billion dirham economic support package amid Iran war
- By Web Desk -
- Mar 31, 2026
Dubai has approved economic facilitation measures worth 1 billion dirhams ($272.26 million) to support business sector, with implementation set to begin on April 1 for a period of three to six months, Dubai crown prince posted on X on Monday.
The support measures aim to enhance the flexibility of the emirate’s economy, strengthen preparedness and enable businesses and families to navigate current economic conditions.
The Gulf states facing economic disruption from Iran’s aerial attacks and closure of the Strait of Hormuz in response to US and Israeli strikes beginning on February 28.
The attacks on the oil-rich states, including their hydrocarbon infrastructure, and Iran’s effective closure of the Strait of Hormuz, a crucial shipping route for around a fifth of global crude oil and liquefied natural gas, have disrupted Gulf economies and punctured their image as a safe haven for business and investment.
“Today, we approved support measures worth AED 1 billion ($272 million) for the economic sector, aimed at assisting individuals, families, and businesses in navigating these exceptional circumstances,” Dubai’s media office said in a statement.
It added: “Long-term government planning reflects Dubai’s unwavering commitment to its citizens, residents.”
The media office said figures showed Dubai’s economy had grown 6.4 percent in the fourth quarter of 2025, according to updated GDP data.
Deferral of Government Fees
The package focuses on easing financial pressure by deferring government fees for three months. Hotels will be allowed to postpone full payment of sales fees and the Tourism Dirham, while customs data grace periods will be extended from 30 to 90 days.
Residency permit
Measures have been introduced to simplify the issuance and renewal of residency permits, making it easier for skilled professionals to live and work in the emirate.
Customs duties exemption
Under the Virtual Warehouses Initiative, overseen by Dubai Customs, temporary imports — including artwork — will be facilitated.
The scheme exempts artwork from customs duties and financial guarantees, suspends duties on private artworks for up to three years, removes geographical restrictions, and enables digital tracking through virtual systems. The initiative builds on the “Art Flow” pilot project and aims to streamline the movement of high-value goods.
Improved Working Conditions
The Health and Safety Strategy for Workers’ Accommodation sets targets to ensure full access to essential services and compliance with health and safety standards by 2033. The initiative aligns with the Dubai 2040 Urban Master Plan and International Labour Organization guidelines, aiming to improve living and working conditions for workers while supporting long-term urban development.
Hamdan bin Mohammed approves AED1 billion in economic incentives during Dubai Executive Council meeting. pic.twitter.com/c3pWAEoukA
— Dubai Media Office (@DXBMediaOffice) March 30, 2026