Dubai Just Put AED 1 Billion on the Table for Businesses Like Yours

What the AED 1 Billion Package Covers

The package was approved as part of five key decisions at the Executive Council meeting. We have broken down the ones that matter most to entrepreneurs and business owners.

Fee Deferrals That Ease Real Financial Pressure

If you are in hospitality or tourism, hotels can now defer 100% of sales fees and Tourism Dirham payments for three months. That is meaningful liquidity relief for one of Dubai's most active sectors.

For trading businesses, importers, and anyone dealing with customs, the compliance grace period has been extended from 30 days to 90 days, with the possibility of a further extension. Less pressure on documentation timelines. More breathing room to run your operations cleanly.

Faster and Simpler Visa Processing

This is the one that will matter most to many of you.
The package specifically includes streamlining the issuing and renewing of residency permits to make it easier for talent to live and work in Dubai. In plain terms, that means faster turnaround, simpler steps, and fewer administrative obstacles when applying for or renewing visas.
If you have been holding off on setting up your company because of questions about visa stability, this is a direct answer from the government.

The Virtual Warehouses Initiative

Approved under Dubai Customs, this initiative makes temporary imports into Dubai smoother and more cost-effective. In its first phase, it focuses on high-value goods including artwork, which are now exempt from customs duties and financial guarantees under a new temporary admission declaration.
Duties on private artworks are suspended for three years. Geographical restrictions have been removed. For businesses dealing in luxury goods, high-value merchandise, or cross-border trade, this opens up real operational advantages that were not there before.

The Dubai Empowerment Strategy

This strategy builds on a programme that has already supported 1,200 young Emiratis, created over 7,000 job opportunities, and brought in more than 400 partner entities across sectors.
It supports both job seekers and people pursuing home-based entrepreneurship. For business owners, this means a more connected, better-supported talent pool to hire from and collaborate with.

The Economy Behind the Decision

Decisions like this do not happen in a weak economy. They happen when a government is confident in its foundation and wants to build on it.
According to the Dubai Government Media Office, Dubai's GDP grew by 5.4% for the full year 2025, reaching AED 937 billion. In Q4 2025 alone, the city posted growth of 6.4%, one of its strongest quarterly performances in recent years.
That growth was not driven by one sector. It was spread across the whole economy, as per the reports.

• Financial and insurance grew 8.5%, contributing 12% to total GDP
• Construction grew 8.5%, backed by sustained infrastructure investment
• Real estate expanded 7%, with property sales up 40%
• Wholesale and retail trade, Dubai's largest sector, grew 4.4% to AED 57.4 billion
• Information and communications grew 5.3%

This is what a healthy, diversified economy looks like. The AED 1 billion package is Dubai choosing to reinvest in the momentum it has already built.
Sheikh Hamdan put it plainly at the meeting:
"Dubai has earned a reputation for credibility, transparency, and trust among businesses and investors worldwide, and stands ready to meet any challenge through the determination of its people and the strength of its inclusive society."

What This Means If You Are Planning to Start a Business

TThe government has just committed a billion dirhams to making Dubai easier and more accessible for businesses, especially for those considering business setup in Dubai. Visa processing is being actively simplified. Fee pressures are being eased. And this all kicks in this month.
If you have been sitting on your business plans, waiting for conditions to feel right, the conditions just got better by official government action.
Here is what that looks like in practical terms:

• Setting up now means you enter during a period of active government support, not before or after it
• Visa processing is being streamlined, so your residency pathway is cleaner and faster than it was last month
• The legal framework already improved significantly with the 2025 Commercial Companies Law reforms, which removed the need to liquidate before moving between free zones and the mainland

The founders who move during moments like this do not just get a business license. They get a head start.

How Emirates First Helps You Make the Most of This

At Emirates First, we work with expats, freelancers, investors, and entrepreneurs at every stage of the Dubai business journey, including setting up a Dubai Free Zone Company. We know the free zones, the visa pathways, the documentation, and the timelines. We handle it all end to end so you do not have to figure it out alone or lose time chasing paperwork across multiple offices.

What you get with Emirates First:

• Business setup starting from AED 4,999
• Access to all major UAE free zones
• Employment and investor visa processing
• Emirates ID and corporate bank account support
• Transparent, fixed pricing with no hidden fees
• A dedicated consultant from your first question to your license in hand

Whether you are starting your first company, converting your visa status, or relocating your business to Dubai, we will make the process simple and get you operational fast.

Frequently Asked Questions

What is the AED 1 billion Dubai incentive package?

It is a set of economic incentives approved by Sheikh Hamdan bin Mohammed on 30 March 2026, effective from 1 April 2026. It includes government fee deferrals, streamlined residency visa processing, customs grace period extensions, the Virtual Warehouses Initiative, and the Dubai Empowerment Strategy.

Who benefits from the Dubai AED 1 billion incentive package?

Businesses across hospitality, tourism, trading, logistics, and the general business community benefit directly. Entrepreneurs and expats benefit from simplified and faster residency visa processing. Anyone setting up a company in Dubai right now enters during an actively supported period.

How does the fee deferral work for businesses?

Hotels can defer 100% of sales fees and Tourism Dirham payments for three months. Customs grace periods have been extended from 30 to 90 days, with the possibility of further extension. These measures are designed to improve liquidity and reduce short-term financial pressure on businesses.

Does the incentive package affect visa processing times?

Yes. The package specifically includes streamlining the issuing and renewing of residency permits to make it easier for talent to live and work in Dubai.

How much does it cost to start a business in Dubai right now?

At Emirates First, business setup packages start from AED 4,999. This covers your free zone trade license, registration, and access to visa processing. All pricing is transparent with no hidden fees.

Is now a good time to set up a company in Dubai?

Based on the data, yes. Dubai's GDP grew 5.4% in 2025, reaching AED 937 billion. The government has just committed AED 1 billion in business support starting April 2026. Visa processing is being actively streamlined. The conditions for setting up right now are among the most supported in recent years.

Do free zone companies pay corporate tax in the UAE?

Free zone companies that meet the criteria of a Qualifying Free Zone Person benefit from a 0% corporate tax rate on qualifying income. This applies when the company maintains adequate operational substance within the zone, earns income from qualifying activities, and meets the compliance conditions set by the Federal Tax Authority. The 0% rate does not apply automatically to every free zone company. Speak with our consultants to understand how this applies to your specific business and structure.