Dubai’s Ruler Announces New Directives To Boost Hotel Investment

The new rules aim to reduce red tape for businesses and cut short approval time.



Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum has issued a series of directives that are aimed at enhancing and streamlining hotel investment and development in the emirate.

Under the new directives, the hotel construction pre-approval process period will be reduced to two months from the current three to six months, reported official news agency WAM.

A one-stop-shop for all sector approvals will be set up and managed by the Dubai Municipality to help reduce red tape for businesses and ensure the new reduced approval timeframes are met.

Government land will also be allocated for the development of three-star and four star hotels, and Dubai Municipality will work with government-linked master developers and DTCM to identify key locations for hotels, said the report.

Additional incentives to help ensure the development of three and four star hotels include no fees on change-of-use of land for hotel usage and the establishment of a special committee to review the re-zoning of plots.

The directives also call for an additional year of exemption of the 10 per cent Dubai Municipality fee for any three and four star hotels which begin operating before June 2017.

The directives came in response to recommendations raised by Dubai’s private sector developers, as Dubai prepares to welcome 20 million annual visitors by 2020.

Hussain Lootah, director-general of Dubai Municipality, said: “In partnership with public and private sectors, we will identify opportunities for streamlining in the hotel development sector, and work together to address them.

“Our aim is to continue Dubai’s journey, to further progress from our position as the region’s leading tourism and business destination to being recognised as a global leader in trade and tourism.”

Helal Saeed Almarri, director-general of DTCM, added: “Collaboration and consultation between the public and private sector is essential if we are to ensure delivery of the infrastructure, accommodation, events and attractions needed to meet not only the current growth of the tourism sector but the ambitious plan we have for future growth.

“HH Sheikh Mohammed’s directives offer new and exciting opportunities for hotel investors. They will act as a stimulus to the sector and help to broaden our current accommodation offering, particularly within the three and four star segment, which is needed to meet the targets outlined in the Dubai Tourism Vision for 2020.”