The rapid development of technology changes the global landscape, which, in turn, impacts the economic backdrop of small and medium-sized enterprises (SMEs). This research analyzes the performance and recovery of SMEs in Dubai post-pandemic, in relation to their sustainability policies. As the primary drivers of Dubai’s economy, SMEs are increasingly pressured to balance their financial viability with emerging green compliance requirements. To this end, the Dubai government has implemented several sustainability policies, including, but not limited to, financial incentives for sustainable transformation, emission caps, and resource utilization incentives. This study uses a mixed-methods approach to exploit the quantitative data from SMEs’ surveys and qualitative data from interviews with policymakers and businessmen. The research emphasizes the role of general and industry-specific tailored supports needed to enhance environmental accountability and business resilience. In summary, this study aims to guide those interested economically recovering Dubai while helping SMEs adapt to change sustainably through informed policy frameworks, investment strategies, and stakeholder engagement, considering the unique socio-economic environment of the emirate.