Dubai unveils incentive scheme to boost hotel development

Dubai is rolling out new incentives for investors, to boost hotel development in emerging growth areas of the city.

The Department of Economy and Tourism (DET) has launched a scheme offering 100 per cent reimbursement of the Dubai Municipality room fee and Tourism Dirham for two years after opening.

It applies to new hotels, resorts and serviced apartments located within Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and the UAE's Deputy Prime Minister and Defence Minister, has issued Dubai Executive Council Resolution No. (68) of 2025, approving the initiative.

The incentive programme, which is applicable only for hotels registered after the introduction of the Resolution, is poised to attract further investment into the city’s hospitality sector, and supports Dubai's wider D33 Economic Agenda.

Hotel operators must apply through the DET and meet specific licensing and classification requirements. Establishments must start operations and receive guests within three years of applying.

Between January and August 2025, Dubai welcomed 12.54 million international overnight visitors, a 5 per cent increase year-on-year.

Average hotel occupancy also rose to 78.5 per cent, among the highest globally.

The Dubai Department of Economy and Tourism (DET) launches a new incentive programme for investors designed to stimulate hotel development in future high-growth areas in the city including Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands. Under the initiative,… pic.twitter.com/cNgO1u75oi

— Dubai Media Office (@DXBMediaOffice) October 21, 2025

Performance of Dubai’s Tourism Sector (January – August 2025)

International Visitors
12.54 million
5% compared to the same period last year

Hotel Room Bookings
29 million room nights
4% compared to the same period last year

Average Occupancy Rate
78.5%
2% compared to the same… pic.twitter.com/7WIZs5UerB

— Dubai Media Office (@DXBMediaOffice) October 21, 2025