Dubai's Dh1-Billion Package To Protect Jobs, Boost Cash Flow

2026-03-31 02:42:09

(MENAFN- Khaleej Times) The Dubai government's Dh1-billion initiative to defer a range of government fees, including allowing hotels to postpone 100 per cent of sales fees and the Tourism Dirham for three months, will help protect jobs and boost liquidity and cash flow in the sector, businessmen and industry executives said.

The Dubai government on Monday announced a host of initiatives and strategies to promote trade and investment, enhance economic performance, and safeguard the workforce amid the ongoing regional situation. The government also approved five key projects and initiatives, including Dh1 billion in economic incentives for the local economy.

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Rashed A. Al Ansari, group CEO of Al Ansari Financial Services, said the package will support stability and sustainable growth.

“This timely initiative underscores Dubai's proactive and forward-looking approach to addressing evolving market dynamics through well-calibrated measures that reinforce confidence across the business community and financial system. Dubai's ability to respond swiftly and decisively, supported by a robust institutional framework, continues to strengthen its position as a resilient and globally competitive economic hub,” he said.

Support longer-term confidence

Borko Handjiski, partner in Oliver Wyman's Government and Public Institutions Practice, said two things are worth highlighting about Dubai's economic support package - its size and speed.

“At Dh1 billion, it is close to one per cent of Dubai's quarterly GDP, which is relatively significant. Given that some of the measures are targeted at selected sectors, particularly hospitality and tourism, its importance for those businesses is even greater. The package was announced quickly and designed for rapid activation,” he said, adding that the measures through deferred fees and related payments will provide direct liquidity support to affected businesses.

Beyond the immediate benefit to the economy, Handjiski sees the package supporting business confidence over the longer term.

Vijay Valecha, chief investment officer at Century Financial, said the package is designed to ease cash flow pressure through cost relief and payment flexibility, making it faster and more effective in the current environment.

“Overall, the package shows Dubai's proactive and flexible policy approach. By focusing on liquidity, lower costs, and smoother trade, it helps businesses stay resilient and supports long-term economic growth,” he added.

In addition, the Dubai-based spend management platform Qashio has rolled out a programme in collaboration with Dubai Chambers to support small and medium businesses.

Running until the end of June 2026, the initiative will provide more than Dh10 million worth of financial relief and welcome bonuses to support Dubai-based businesses.

Breathing space

Ayman Ashor, general manager of Al Bandar Rotana and Al Bandar Arjaan by Rotana, said that from an operational perspective, this initiative will significantly enhance liquidity for hotel operators.

“By temporarily easing immediate financial obligations, hotels are better positioned to preserve cash flow, sustain operations, and maintain employment levels during periods of softened demand. It allows operators to redirect resources toward critical areas such as asset maintenance, service quality, and targeted commercial initiatives - ensuring that standards are not compromised,” he said.

More importantly, Ashor noted that the new measure provides“breathing space for the sector” and allows operators to focus on recovery strategies, drive direct revenue channels, and remain competitive in an evolving global landscape.

Vinayak Mahtani, CEO of bnbme holiday homes, said the initiative will provide immediate short-term liquidity relief for operators.

“At a time when revenues have been significantly impacted, even temporary breathing room on cash outflows helps businesses stabilise operations, protect jobs, and continue delivering service. The sector is still navigating a period of sustained pressure, and while this initiative is an important first step, continued support and additional measures may be required to ensure long-term stability and recovery across the ecosystem,” he added.

Imtiaz Hussain Nasir, CEO of Pinoy Tourism, said the package will enable businesses to remain active and competitive.

“The deferred payment measures will improve liquidity across the hospitality sector, allowing hotels to offer more competitive rates and flexible options. This, in turn, is expected to support travel demand and strengthen overall momentum for the tourism and hotel industry in Dubai,” Nasir added.