Dubai has unveiled an economic support package for the Iran war worth 1 billion dirhams ($272 million), aimed at helping businesses and residents cope with regional economic disruption.
The measures will take effect on April 1 and are expected to remain in place for 3 to 6 months. Officials say the package is designed to boost economic flexibility and improve preparedness during ongoing uncertainty.
Dubai’s leadership emphasised that the initiative will help businesses, families, and individuals navigate current conditions caused by the conflict.
The support comes as Gulf economies face pressure from Iran’s aerial attacks and the closure of the Strait of Hormuz.
This vital shipping route handles a significant share of global oil and liquefied natural gas. Its disruption has affected trade flows and raised concerns across the region. To ease financial pressure, Dubai will defer certain government fees for three months. Hotels will be allowed to delay payments of sales-related fees and the Tourism Dirham. Additionally, customs data grace periods will be extended from 30 to 90 days.
Authorities are also streamlining the issuance and renewal of residency permits. This step is expected to attract and retain skilled professionals, supporting business continuity. Under the Virtual Warehouses Initiative, temporary imports such as artwork will benefit from exemptions.
Read: Dubai Tries To Protect Safe Haven Image As Iran Strikes Test UAE Confidence
The plan removes customs duties and financial guarantees for certain goods, while allowing digital tracking and greater flexibility. It builds on the earlier “Art Flow” pilot project. Dubai is also focusing on long-term workforce welfare.
A new Health and Safety Strategy for Workers’ Accommodation aims to ensure access to essential services and compliance with standards by 2033. The initiative aligns with the Dubai 2040 Urban Master Plan and international labour guidelines. Despite current challenges, Dubai’s economy showed strong performance, growing by 6.4 per cent in the fourth quarter of 2025, according to updated GDP data.
