Hotels in Dubai: New investor positions offer 100% return on investment for projects in key growth areas
Dubai has unveiled a major Investor Incentite incentive program that offers 100 percent cash back on key municipal and tourism charges for two years after opening.
Travel is targeting new hotel projects in Dubai South, Palm Jebel Ali, Dubai Parks and Dubai Islands.
The Department of Economy and Tourism (DeP) has launched a Hotel Limit to encourage the development of hospitality in future growth areas across the Emirate.
This step follows the issuance of the decision of the Executive Council No. (68) of 2025 by Sheikh Hamdan Bin Mohashid al Maktoum, Preacher of the Prime Minister, Minister of Defense, and Chairman of the Executive Council.
Dubai hotel offers
Under the decision, eligible hotels will be reimbursed 100 percent of the Municipality’s revenue from room sales and Tourism Dirham for two years after opening.
The incentive applies to new hotels, resorts, hotel rooms and other approved establishments located in designated areas.
IS ISAMAM KAZIM, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said the program is important in creating the hospitality environment in Dubai “, expanding its reach to the districts from Dusai while supporting the tourism trajectory of the city.
He added that public sector cooperation and a diversified market approach are always at the center of Dubai’s tourism strategy, stressing its desire to be “the best city to visit, live, work and invest in.”
Investors welcome the initiative
Khalifa Al Zaffin, Chairman of Dubai Aviation City Corporation, said that this decision will strengthen the confidence of investors, especially in Dubai South, which continues to expand rapidly and commercially.
Khalid Al Malik, Managing Director of Dubai Holding, described the move as a “bold move” that reflects Dubai’s demonstrated leadership and an effective approach to attracting large-scale international investment and drive.
The incentive only applies to registered hotels after the introduction of renovations and is expected to draw investment as Dubai implements the D33 economic agenda.
Between January and August 2025, Dubai welcomed 12.54m international visitors, an increase of 5 years, and hotels entered with 29.03m rooms in the whole room, four percent from 2024.
The city’s occupancy rate reached 78.5 percent, among the highest points in the world, which increased by two percent over the same period last year.
Usage and suitability
The Ministry of Economy and Tourism will manage the implementation plans and ensure compliance with the due diligence period.
Eligible establishments must be licensed and classified under declaration No.
The move aligns with the Emirate’s long-term ambition to transform its economy, increase visitor numbers, and strengthen its reputation as a Global Tourism and Investment Hub.
By revitalizing hotel development in newly master-planned areas, it supports continued growth under the D33 agenda and improves the emirate’s global competitiveness.
