Dubai will provide economic incentives worth more than $400 million, authorities said Thursday, as businesses struggle to cope with the aftermath of the Middle East war and Iran’s blockade in the Strait of Hormuz.

Authorities approved “a second package of economic incentives valued at AED1.5 billion ($408 million)”, the Dubai government’s media office said in a post on X.

The incentives include exemptions from municipal fees for hotels and restaurants, reduced fines for customs violations and lower fees for civil aviation permits.

“The new package brings the total value of incentives introduced in under two months to AED 2.5 billion ($680 million),” the office added.

In late March, Dubai authorities announced a first package worth over $270 million to help businesses and families.

The United Arab Emirates bore the brunt of Iran’s attacks during the war, as Tehran unleashed drones and missiles across the Gulf in response to US and Israeli strikes.

The attacks targeted US assets but also vital economic infrastructure, including energy facilities, ports, airports and residential areas.

Although the vast majority of strikes were intercepted, the attacks shook the aura of stability essential to business in the Gulf.

Iran’s blockade of the Strait of Hormuz, through which one fifth of the world’s oil and LNG exports normally pass, continues to pile pressure on Gulf economies.