Live updates: Follow the latest news on the US-Iran war
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, has approved a Dh1 billion ($272.2 million) support package for the emirate's business sector.
The package will be introduced from April 1 and is to serve as a stimulus for business over the next three to six months. The package was approved on Monday in a meeting of Dubai's Executive Council.
The meeting also noted that the emirate's GDP rose by 5.4 per cent to exceed Dh937 million in 2025.
"Our message is clear: Dubai remains committed to supporting individuals, families and businesses with confidence and stability," Sheikh Hamdan wrote on X. "With strong institutions and deep community ties, the emirate continues to grow, turning challenges into opportunities and emerging stronger than ever."
What does the package include?
According to Dubai Media Office, the package includes the following measures:
- Deferral of payment for a group of government fees for a period of three months to alleviate the financial burden on companies and enhance their liquidity
- Deferral of collection of hotel sales fees for a period of three months with the aim of enhancing the liquidity of the hotel sector
- Deferral of collection of the Tourism Dirham fee for three months with the aim of enhancing and supporting the tourism sector
- Extension of grace periods for customs data from 30 to 90 days – extendable for similar periods – with the aim of boosting exporters and importers
- Provision of competitive advantages to streamline procedures for issuing and renewing residencies, helping talented people
The Council also approved the Virtual Warehouses Initiative, which aims to facilitate temporary import procedures to Dubai, and an empowerment strategy to improve the financial stability of Emirati families.
A Health and Safety Strategy in Workers' Housing was also announced, to improve the quality of their working and housing conditions.
Strong and optimistic
Sectors including tourism, hospitality and aviation have experienced a slowdown since the Iran war broke out on February 28. However, in a meeting of the UAE Cabinet on Sunday, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said the country was operating with "complete efficiency".
“Our national institutions operate with complete efficiency; our defence forces operate with complete professionalism; our private sector keeps pace with developments with complete responsibility,” Sheikh Mohammed wrote on X.
He also spoke of his pride in the strength and resilience of the UAE as it defended itself against attacks from Iran. “The success of the UAE is built on constants that have not changed and will not change,” he said. “Advanced infrastructure and technology, and an advanced legislative framework, a quality of life among the best in the world, and a government committed to building comprehensive development for its people and all residents on its land.
“Our constants remain, and our journey continues and our return will be stronger, God willing, after the passage of these exceptional circumstances."
The country's banking sector, meanwhile, is strong and can handle the effects of the war and the implications of subsequent high interest rates, Henrik Raber, head of global banking at Standard Chartered in Dubai, told The National.
There has been “no real impact to date” from the conflict on financial institutions in the Arab world's second largest economy, he added.
S&P Global Ratings this month also affirmed the UAE's “AA/A-1+” rating and said its outlook remains stable despite the uncertainty brought by the war's impact on supply chains, economies and credit conditions.
