ANNOUNCEMENT 20 Jan 2014

In January 2014, the government of Dubai eased the restrictions for the entry to the hotel sector.

NUMBER OF INTERVENTIONS

4

  • 2 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

UNCTAD, Measures to liberalize entry to the Hotel Sector, 20 January 2014, Available at https://investmentpolicy.unctad.org/investment-policy-monitor/measures/2512/united-arab-emirates-measures-to-liberalize-entry-to-the-hotel-sector

Travel Daily Media, Mohammed bin Rashid streamlines Dubai’s hotel investment and development, 21 January 2014, Available at https://www.traveldailymedia.com/mohammed-bin-rashid-streamlines-dubais-hotel-investment-and-development/

Inception date: 20 Jan 2014 | Removal date: open ended

FDI: Entry and ownership rule

On 20 January 2014, the Ruler of Dubai Mohamed Bin Rashid Al Maktoum Eased issued new directives that ease the establishment of foreign hotels in the emirate. The new directives are the following:

  1. Hotel construction pre-approval process period to be reduced to two months – currently, the approval process for private developers ranges from three to six months
  2. Approval processes of planning permission for all hotel establishments in the Emirate to be standardized through Dubai Municipality – currently some free zones manage their own building regulation approval processes for hotels in areas across Dubai so these will now be moved to Dubai Municipality
  3. New reduced approval timeframes through creating a single streamlined system will be managed by Dubai Municipality.
  4. Elimination of fees applied to change-of-use of land for hotel usage (this fee only applied to foreign investors).

In addition, to the entry and ownership cases, the new directives grant special financial incentive to foreign investors from the hotel sector (see related interventions).

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 20 Jan 2014 | Removal date: open ended

FDI: Financial incentive

On 20 January 2014, the Ruler of Dubai Mohamed Bin Rashid Al Maktoum Eased issued new directives that provide financial incentives to foreign investors of the hospitality industry. The new directives are the following:

  1.  Exemption from the 10% Dubai municipality fee to any three- or four‑star hotel that begins operating before June 2017 
  2.  Government land to be allocated for the development of three-star and four-star hotels.

In addition, to these financial incentives, the new directives ease the establishment of foreign hotels in the emirate (see related interventions).

 
 
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Inception date: 20 Jan 2014 | Removal date: open ended

Tax or social insurance relief

On 20 January 2014, the Ruler of Dubai Mohamed Bin Rashid Al Maktoum Eased issued new directives that provide financial incentives to foreign investors of the hospitality industry. One of the subsidies provided is the exemption from the 10% Dubai municipality fee to any three- or four‑star hotel that begins operating before June 2017.

In addition, to this incentive, the new directives ease the establishment of foreign hotels in the emirate (see related interventions).

 
631 632
 
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Inception date: 20 Jan 2014 | Removal date: open ended

In-kind grant

On 20 January 2014, the Ruler of Dubai Mohamed Bin Rashid Al Maktoum Eased issued new directives that provide financial incentives to foreign investors of the hospitality industry. One of the subsidies provided is the allocation of Government-owned land for the development of three-star and four-star hotels.

In addition, to this incentive, the new directives ease the establishment of foreign hotels in the emirate (see related interventions).

 
 
631 632
 
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