Dubai Department of Economy and Tourism (DET) launches incentive programme to enhance hotel development in emerging areas

UAE – The Dubai Department of Economy and Tourism (DET) has launched a new incentive programme for investors designed to stimulate hotel development in future high-growth areas of the city.

This initiative follows Executive Council Resolution No. (68) of 2025, approved 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.

Under the programme, eligible hotels, resorts, hotel apartments, and other approved facilities in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands will receive a 100% reimbursement of the Dubai Municipality fee on room sales and the Tourism Dirham for two years following opening.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, part of DET, said this programme marks “an important new phase in the development of Dubai’s hospitality ecosystem.”

It expands the city’s hospitality footprint in emerging districts and supports Dubai’s strong tourism growth trajectory.

Kazim emphasized the continued commitment to public-private partnerships and diversification as fundamental to Dubai’s tourism strategy, aiming to make Dubai the best city to visit, live, work, and invest in.

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, praised the incentive, highlighting its role in attracting private-sector investment and supporting rapid development in Dubai South’s residential and commercial sectors.

Khalid Al Malik, Managing Director of Dubai Holding, described the initiative as a demonstration of Dubai’s visionary leadership and proactive approach, fueling sustainable growth and global investment attraction.

The programme applies only to hotels registered after the resolution’s introduction. Establishments must be licensed under Decree No. (17) of 2013 and begin operations within three years of application.

The Department of Economy and Tourism will review applications and monitor compliance throughout the incentive period.

Dubai’s tourism growth remains robust in 2025, with 12.54 million international overnight visitors and 29.03 million occupied room nights in the first eight months, a 5% and 4% year-on-year increase respectively.

The average hotel occupancy rate reached 78.5%, among the highest globally.

This new incentive supports the Dubai Economic Agenda (D33), promoting sustainable expansion and competitiveness in the emirate’s hospitality sector.

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