Emirates: Dubai has approved a 1 billion dirham ($272.26 million) economic support package to boost its business sector, with measures set to kick off on April 1 and remain in effect for the next three to six months.

In a Facebook post, Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, stated that the measure aims to alleviate financial pressures, enhance economic flexibility, and support businesses and families amid the current economic challenges.

The latest announcement from Al Maktoum, who is also chairman of the Executive Council of Dubai, comes as Gulf policymakers respond to the impact of the war involving the US, Israel and Iran, which has heightened uncertainty across regional markets, disrupted airspace, strained key shipping corridors, and raised concerns over the security of vital energy routes such as the Strait of Hormuz.

Earlier this month, the Central Bank of the UAE rolled out a financial resilience package to support banks, including easier access to liquidity, temporary relief on funding and capital buffers, and flexibility for loan classifications. To safeguard financial stability, Qatar Central Bank has also allowed banks to defer loan payments and boost liquidity support as war escalates in the region.

“I chaired the meeting of the Executive Council today, and we approved facilities for the economic sector in Dubai worth one billion dirhams, to begin their implementation as of April 1st for a period of three-six months, which strengthens the flexibility of the Emirate’s economy, raises the level of readiness, and ensures the speedy response to the requirements of the current stage,” wrote Al Maktoum on his Facebook page.

The economic incentives include deferring various government fees for three months, including allowing hotels to postpone paying 100 percent sales fees, to boost liquidity in hospitality and tourism, state news agency WAM reported.

WAM added that customs data grace periods will also be extended from 30 to 90 days, with possible further extension.

The package will also streamline the issuing and renewing of residency permits, making it easier for talent to live and work in Dubai.

Al Maktoum added that Dubai remains committed to supporting individuals, families and businesses with confidence and stability, and the Emirate wants to turn challenges into opportunities and “emerge stronger than never before.”