UAE Economic Initiatives Package to address the impact of regional developments

On 30 March 2026, the Executive Council of Dubai met to identify and approve a series of initiatives that are targeted at empowering individuals and society, promoting trade and investment, enhancing economic performance, and safeguarding the workforce.

With the goal of supporting businesses, enhancing liquidity, and ensuring operational continuity amid evolving regional challenges, the Executive Council of Dubai has approved a targeted Economic Initiatives Package effective from April 2026. The package introduces temporary fee deferrals, extended customs grace periods, and procedural facilitations across customs, licensing, municipal services, tourism, and residency-related processes.

While the measures do not introduce new tax exemptions or rate changes, they provide meaningful cash‑flow relief, indirect tax timing benefits, and compliance flexibility for businesses operating in Dubai.

The government of the United Arab Emirates has introduced these targeted incentives to support businesses and individuals across the country in order to provide timely and focused relief by easing short‑term financial pressures, supporting business continuity, and protecting employment in response to the ongoing regional conflict. By deferring selected obligations while maintaining fiscal discipline, the measures reinforce confidence in Dubai’s resilient, responsive, and business‑friendly economic framework. Collectively, these safeguards help preserve short‑term liquidity, reduce compliance and administrative burdens, and promote economic stability, while allowing sufficient time for a measured and sustainable recovery of the economy.

The below are the incentives along with the timelines that have been introduced by the government of the UAE for safeguarding the interests of the business and individuals:

Practical implications:

Businesses should note that the measures announced constitute indirect support mechanisms, rather than direct financial assistance or cash subsidies. The relief is primarily delivered through temporary cost deferrals, achieved by postponing selected government‑imposed fees, and regulatory facilitation, including procedural simplifications such as extended customs grace periods and streamlined residency processes. As a result, the principal benefit for businesses lies in enhanced liquidity and reduced short‑term cost pressure, rather than immediate cash inflows. Businesses should therefore plan accordingly, noting that these measures are time‑bound and such benefits shall only apply till the end of the definite period as announced through the government’s directives.

Recommended action:

Businesses operating in United Arab Emirates should carefully consider the following:

• Businesses should evaluate relevant government charges to determine which payments are eligible for the three‑month deferral and factor this into short‑term cash‑flow planning.
• Where applicable, companies should coordinate with customs authorities to utilize the extended 90‑day grace period for customs‑related submissions and clearances.
• Organizations should review their workforce planning and talent requirements in light of the streamlined residency procedures, which may allow for more efficient hiring and renewal processes.
• Businesses with entities registered under the mainland jurisdiction with the Department of Economy and Tourism are advised to check for any rebates available on license issuance or amendment fees, prior to applying for new licenses, renewing licenses or submitting applications for structural amendments.
• Businesses are also advised to stay alert for further guidance or announcements from the Dubai Executive Council and relevant authorities, as additional extensions or measures may be introduced.

KPMG in the Lower Gulf will continue to monitor developments and strive to keep you informed as new information is made available.