Dubai's Dh1 Billion Business Package

Dubai’s Dh1 billion economic support package, introduced in April 2026, provides short-term liquidity relief to businesses impacted by the regional conflict. While the initiative covers government fee deferrals, tourism levy postponements, and administrative flexibility, it leaves a critical gap by excluding direct workforce-related costs such as salaries, benefits, gratuity, and compliance obligations. 

As revenues decline sharply particularly in tourism, hospitality, and service-driven sectors, organisations are facing mounting pressure to manage high fixed payroll expenses without proportional income support. This has made workforce cost restructuring an urgent priority within a narrow three- to six-month window.

Key insights from this report highlight:

• Government fee deferrals offer temporary relief but create a repayment burden in Q3 2026, increasing future liquidity risk.

• Workforce costs remain the largest and most unaddressed expense, often accounting for 60–70% of total operating costs.

• Businesses risk cash flow strain if deferred savings are not strategically reserved for upcoming obligations.

• Emiratisation compliance deadlines are adding parallel cost pressures, particularly with mandatory salary adjustments.

• A proactive workforce restructuring approach combining cost optimisation, outsourcing, and flexible staffing offers a more sustainable path than relying solely on policy relief.

Download the full report to explore detailed strategies for managing workforce costs and navigating financial uncertainty effectively.