Dubai rolls out a second economic incentives package worth $408 million as Iran's Strait of Hormuz blockade and the fallout from the Middle East war weigh on Gulf businesses.
The package, valued at AED 1.5 billion ($408 million), includes exemptions from municipal fees for hotels and restaurants, reduced fines for customs violations and lower fees for civil aviation permits.
It brings total incentives announced in under two months to AED 2.5 billion ($680 million), following a first package of over $270 million unveiled in late March.
How hard has the UAE been hit by the Middle East conflict?
The United Arab Emirates bore the brunt of Iran's attacks during the war, as Tehran unleashed drones and missiles across the Gulf in response to US and Israeli strikes.
The attacks targeted US assets but also vital economic infrastructure, including energy facilities, ports, airports and residential areas.
Although most strikes were intercepted, the sustained campaign eroded the Gulf's hard-won reputation for stability.
Why does the Strait of Hormuz blockade matter for Dubai?
Iran's blockade of the Strait of Hormuz, through which one-fifth of the world's oil and LNG exports normally pass, continues to squeeze Gulf economies.
Dubai, as a major regional trade and logistics hub, is particularly exposed to any disruption along that corridor. The second incentives package signals that authorities expect the pressure on businesses to persist.
Dubai's Executive Council approved the second package Thursday, the Dubai government's media office announced in a post on X.
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