For transits > 10 hours, Indian citizens have to exit the airport & get another COVID test done in Dubai. A transit visa is provided on arrival.
No issues for transits < 10 hours.
Ineligible to stay in the airport hotel, have to stay outside the airport. Dubai connect with free hotel eligible only for 1-way fare/person > $ 1000 USD.
Confirmed with Emirates support as of Nov 2021.
From this source.
If you are traveling from one of the restricted countries (Bangladesh, India, Nigeria, Pakistan, Sri Lanka, South Africa, Uganda, Vietnam, Zambia) and have a Dubai Connect Package booked, you must comply with the requirements of your final destination and follow UAE entry and regulatory requirements. If you are traveling from one of the restricted countries, you will be required to leave the airport if your transit time is more than 10 hours.
Info as of Dec 4 2021:
If you're a transit customer from one of these countries listed above with a Dubai Connect booking and/or transit time of more than 10 hours; you must present a negative COVID‑19 PCR test certificate with a QR code for a test conducted within 48 hours of the time the sample was taken at an approved health facility. You must also present a Rapid PCR test report with a QR code for a test conducted at the departure airport within six hours of departure.
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