Dubai is set to provide economic incentives worth over $400 million, as businesses struggle to cope with the aftermath of the Iran war and the closure of the Strait of Hormuz.
Authorities approved “a second package of economic incentives valued at AED 1.5 billion ($408 million)”, the Dubai government’s media office said in a post on X.
The incentives include exemptions from municipal fees for hotels and restaurants, reduced fines for customs violations and lower fees for civil aviation permits.
“The new package brings the total value of incentives introduced in under two months to AED 2.5 billion ($680 million),” the office added.
In March, Dubai announced a first package worth over $270 million to help businesses and families.
Iran has struck every single Gulf country, as well as Israel, in response to US-Israeli attacks on Tehran launched on 28 February. The UAE has been struck by the Iranians more than any other country.
Although the vast majority of strikes were intercepted, the attacks shook the aura of stability essential to business in the Gulf.
Iran’s blockade of the Strait of Hormuz, through which one fifth of the world’s oil and LNG exports normally pass, has also piled pressure on Gulf economies.
