Mohammed bin Rashid streamlines Dubai’s hotel investment and development

In a bid to boost hospitality development across Dubai, Ruler of Dubai, UAE vice president and Prime Minister, His Highness Sheikh Mohammed bin Rashid Al Maktoum recently issued a series of directives. The directives are designed to enhance and streamline hotel investment and development in the Emirate.

The directives were made in response to recommendations raised by Dubai’s private sector developers. The directives made by His Highness Sheikh Mohammed bin Rashid Al Maktoum are the as follows:

• 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
• A one-stop-shop for all sector approvals to be created- a single streamlined system will be managed by Dubai Municipality to help reduce red tape for businesses and ensure new reduced approval timeframes are met
• Approval processes of planning permission for all hotel establishments in the Emirate to be standardised 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
• Government land to be allocated for development of three-star and four star hotels – Dubai Municipality and government-linked master developers will work with DTCM to identify key locations for hotels at favourable investment terms

Additional incentives to help ensure development of additional three and four star hotels that Dubai will need by 2020 to meet growth in visitor numbers include:

• No fees on change-of-use of land for hotel usage
• Establishment of a special committee to review re-zoning of plots
• An additional year of exemption of the 10% Dubai Municipality fee for any three and four star hotels which begin operating before June 2017, based on the Hotel Incentive initiative announced by DTCM in September 2013.

“In partnership with public and private sectors, we will identify opportunities for streamlining in the hotel development sector, and work together to address them. 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,” said Helal Saeed Almarri, director-general of DTCM.