UAE Announces AED 21 Billion Economic Support Package in Response to Regional Crisis

In response to the economic crisis caused by the conflict in the region, UAE recently announced a huge economic support program involving over AED 21 billion.

Such a move is aimed at supporting the national economy, businesses, banks, individuals, and the citizens of the country.

Reasons Behind the Support Package Introduction

The regional economic crisis created numerous challenges, such as:

• Increased logistics costs
• Premium rates on insurance
• Disruptions of supply chains
• Pressures on tourism and hospitality industries
• Higher business expenses

Thus, to minimize the effects, UAE authorities developed an effective plan which covers the following spheres:

• Economy
• Banking
• Housing
• Society

AED 2.5 Billion of Support for Dubai Business Owners

The support package was divided into two parts in Dubai and covered up to AED 2.5 billion.

The First Support Package: AED 1 Billion

The first part of the package included the following measures to provide instant support for companies:

• Postponement of administrative fees
• Postponement of registration and renewal fees
• Suspension of hotels’ tourism dirham and taxes
• Customs declaration delays
• Temporary duty-free importing goods
• Flexibility in DIFC and DFSA compliance requirements
• Facilitating processes for obtaining residency
• Simplifying procedures for recruitment

All these actions were taken to ensure the continuity of cash flow in difficult times.

The Second Support Package: AED 1.5 Billion

The second part involved 33 initiatives aimed at helping the businesses which are the most sensitive to regional economic instability.

Among those initiatives were the following measures:

• Postponing license renewal for educational institutions
• Supporting nurseries and schools
• Providing exemptions from tourism taxes
• Exempting from holiday home permit fees
• Providing exemptions from event permit fees
• Extending license expiration dates for SME members
• Providing relief to aviation, marinas, safaris, drones, events
• Extending construction permits
• Extending housing loan approval period

Special Financial Resilience Package by UAE Central Bank

To ensure the stability of the banking sector and help borrowers in difficult situations, the UAE Central Bank introduced a special financial resilience program.

Key Banking Support Programs

This program consisted of four initiatives aimed at helping banks to continue financing the companies without affecting their financial stability:

• Flexibility in classifying loans
• Releasing capital buffers
• Increasing liquidity
• Encouraging lending

More Than AED 6 Billion Already Distributed

As of May 2026:

• A total of AED 6.2 billion have already been distributed
• More than 65,000 citizens have already benefited
• Both individuals, SMEs, and corporations received support

Further support includes:

• Loan payment deferrals
• Suspend interest and other payments
• Flexible credit card payments
• Offering business overdraft
• Offering loan restructures

Housing Support for UAE Citizens

Ensuring housing safety remains the priority task of the UAE authorities.

Housing Support for Abu Dhabi

Abu Dhabi allocated AED 5.76 billion as part of its housing support scheme, consisting of:

• Provision of housing loans
• Grants of ready-built housing
• Allocation of residential land
• Debt repayment exemption

It provided housing support to thousands of citizens.

Residential Land Allocation in Dubai

More than 4,631 pieces of residential lands were allocated in Dubai, including AED 5.3 billion worth.

Interest-Free Repayment Program for Low-Income Retirees

The government announced a special interest relief for the lowest income retirees which will allow them to pay only the principal sum.

According to the program:

• Banks will waive interest and other profits
• About 2,300 retirees will benefit from the program
• Total savings are expected to exceed AED 834 million

National Unified Health Insurance Program

UAE has just announced a nationwide health insurance system providing access to all hospitals in the United Arab Emirates.

Advantages of this insurance program include:

• Coverage in any Emirates
• Visiting specialized hospitals across the country
• Elimination of geographic restrictions
• High-quality medical treatment and care

Dubai Family Development Strategy

Dubai launched the AED 1.8 billion strategy for family development which includes:

• Establishment of new residential communities
• Development of family housing schemes
• Construction of community centers
• Weddings facilities
• Public event facilities

What Does It Mean for Your Business?

The company’s owner should take advantage of the opportunities to receive certain support from the state, such as:

• Administrative fee reduction
• Licenses renewal deferral
• Custom and logistics support
• Support from the banking system
• Possibilities to finance and restructure loans

The businesses engaged in tourism, logistics, aviation, hospitality, event organization, and trading can take advantage of these initiatives.

Conclusion

The announcement of such a huge support package proves that the authorities of UAE do everything necessary to protect its national economy and citizens from the possible negative consequences of a regional crisis.