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UAE to introduce sugar tax on drinks from 2026: Here’s what it means for residents

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From January 2026, the cost of sugary drinks in the UAE will depend on their sweetness level. The Ministry of Finance and the Federal Tax Authority (FTA) have announced a major change to the country’s excise tax system on sugar-sweetened beverages (SSBs). Instead of the current flat 50% tax rate, a new tiered system will link tax per litre to the drink’s sugar content per 100ml; the more sugar, the higher the tax.

The move aims to curb sugar consumption, promote healthier choices, and encourage manufacturers to reduce sugar levels in their products. The UAE has one of the highest diabetes rates in the region, with over 20% of the adult population affected, according to recent health data.

What’s Changing?

Under the new model:

  • Drinks with lower sugar content will be taxed at a lower rate.
  • High-sugar beverages will face increased excise duties, making them more expensive for consumers.
  • The tax calculation will no longer be based on product type alone, but on its nutritional content.

This approach, officials say, gives consumers clearer information about what they’re drinking while pushing manufacturers toward healthier formulations.

Why It Matters

The policy shift is part of the UAE’s wider strategy to improve public health and reduce the burden of lifestyle diseases like obesity and Type 2 diabetes. It also aligns with Gulf-wide efforts to unify tax frameworks and use fiscal tools to drive better health outcomes.

“This enhanced model encourages manufacturers to reduce added sugars and empowers consumers to make informed dietary choices,” the Ministry of Finance said.

Authorities are giving businesses over a year to prepare for the changes, which will require updates to pricing, packaging, and supply chain systems. Awareness campaigns and more details will follow in the coming months.

How Will It Impact You?

For consumers, this means the price of your favourite soft drink, juice, or energy beverage may vary based on how much sugar it contains. Drinks with less sugar, or no sugar, are likely to become more competitively priced.

For example, if you reach for a full-sugar soda, expect to pay more than you would for a reduced-sugar or sugar-free version of the same brand.

Major producers such as Coca-Cola and PepsiCo are already adapting. In 2023, nearly 30% of Coca-Cola’s drinks sold in the UAE were low or zero-calorie, and 68% contained less than 100 calories per 355ml serving. Companies are now exploring sugar alternatives like stevia to maintain taste while reducing calories.

What’s Next?

The updated sugar tax model will come into effect in early 2026, pending the release of implementing legislation. Until then, businesses, importers, and retailers are being encouraged to prepare, with health authorities working closely with the tax authority to ensure a smooth transition.

While it’s unclear if the new rules will affect alcoholic drinks, the broader message is clear: the sweeter the drink, the higher the price tag, and that’s by design.

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Announcements

India’s BCKIC 2025 Conclave to unlock $10–50 billion green market access for UAE and GCC leaders

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The stage is set for one of the most significant India–Middle East business dialogues of the decade, as the Bhubaneswar City Knowledge Innovation Cluster (BCKIC) 2025 Conclave prepares to open in India this November, offering, according to organisers, a $10–50 billion sustainability and investment opportunity for Gulf-based leaders.

Scheduled for November 21 and 22 in Bhubaneswar, Odisha, the two-day conclave will bring together senior representatives from government entities, sovereign funds, and the private sector across the UAE, Saudi Arabia, and the wider GCC region. 

The event is organised by the BCKIC Foundation, supported by the Government of Odisha’s Department of Energy, under the aegis of the Office of the Principal Scientific Adviser to the Government of India.

Themed around The Next Wave of Sustainability Policy and Investment Flows”, the summit seeks to bridge India’s rapidly expanding green economy, valued at over $165 billion, with the Middle East’s capital, innovation and policy frameworks under Vision 2030 and UAE Centennial 2071.

“This is not just another global summit, it’s a strategic inflection point for India–Middle East collaboration,” said Dr Mrutyunjay Suar, Chairman of the BCKIC Foundation.

“From green hydrogen and water security to circular economy and AI-driven sustainability, the synergies between India’s innovation scale and the Gulf’s execution capacity are unparalleled. Missing this window could mean losing the first-mover advantage in shaping global sustainability frameworks.”

A New Era of India–Middle East Sustainability Partnership

The conclave comes at a pivotal moment for both regions. Following India’s G20 presidency in 2023 and the UAE’s hosting of COP28, both nations have emerged as global voices in sustainability transition and climate finance.

Dr. Suar noted that the conclave will act as a strategic platform for Gulf leaders to consolidate their role within the India–Middle East–Europe Economic Corridor (IMEC), while also gaining access to India’s technology, research, and policy innovation ecosystem.

“Gulf sovereign funds now control over $2 trillion in assets and are increasingly looking for sustainable, high-return projects,” he said. 

“India’s innovation and affordability, combined with the Middle East’s capital and implementation speed, make this partnership an unprecedented opportunity to move from commitment to concrete outcomes.”

Access to Proven Technologies and MoU-Ready Projects

Middle Eastern delegates will gain direct access to Indian policymakers and experts from NITI Aayog, DST, and the Principal Scientific Adviser’s Office, with discussions focused on green hydrogen, renewable energy, waste-to-energy, and climate-resilient infrastructure.

The event will also unveil a pipeline of over 50 proven Indian technologies relevant to Gulf market needs, ranging from water management systems to digital smart-city solutions, many of which have demonstrated cost efficiencies of 30–50% compared to Western alternatives.

The BCKIC Foundation confirmed that the conclave is structured to deliver tangible outcomes, with more than 20 Memorandums of Understanding (MoUs) already in advanced stages of preparation. The targeted projects are expected to offer internal rates of return (IRR) between 15% and 25%, appealing to investors seeking both profitability and environmental impact.

Odisha: A Live Model for Sustainable Urban Innovation

The conclave will take place in Bhubaneswar, the capital of Odisha, one of India’s fastest-growing hubs for renewable energy and smart cities. The venue itself will serve as a live showcase of sustainable urban development, featuring zero-waste hospitality, circular economy practices, and local sourcing models.

Organisers say the event is designed to foster lasting bilateral frameworks that will drive long-term cooperation between India and the Middle East across sustainability, technology transfer, and impact investment.

“This is the decade of decisive climate action and cross-regional collaboration,” Dr Suar added. 

“The BCKIC 2025 Conclave will not just discuss ideas but catalyse partnerships that define the global sustainability roadmap for years to come.”

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Dubai introduces world’s first smart gold testing lab: Get your jewellery checked in under a minute

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Dubai just made testing your gold and jewellery a whole lot easier. The Dubai Central Laboratory, part of Dubai Municipality, has launched the Smart Gold and Jewellery Testing Lab, the first-ever fully automated device that can check the purity of gold, silver, and platinum, all without human help. And the best part? Results come back in under 60 seconds.

Unveiled at GITEX Global 2025, this cutting-edge innovation uses AI, X-ray tech, and advanced spectroscopy to deliver highly accurate readings. It’s designed to make life simpler for traders, buyers, and jewellery enthusiasts, reinforcing Dubai’s reputation as a global hub for precious metals.

How It Works – Quick, Smart, and Totally Hands-Free

The device is entirely autonomous. That means no staff intervention, no waiting around, and minimal room for error. It’s smart enough to self-calibrate, monitor its own performance remotely, and respond instantly to any issues. According to Dr Naseem Mohammed Rafi, Acting CEO of Dubai Municipality’s Environment, Health, and Safety Agency, this is a “game-changer” for precision, speed, and reliability in the precious metals sector.

Where You Can Try It First

The first device will be installed at the iconic Gold Souk in Deira, with plans to roll it out across other key locations in Dubai. This move is part of Dubai Municipality’s push to create a fully integrated testing ecosystem for gold and jewellery, ensuring quality, compliance, and peace of mind for everyone, from traders to shoppers.

Whether you’re a collector, a trader, or just curious about the purity of your jewellery, this smart lab makes checking your gold fast, easy, and reliable.

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Abu Dhabi T10 levels up its game with BC.GAME Esports as principal partner

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The Abu Dhabi T10 League has announced BC.GAME Esports as its Principal Partner for the 2025 season. This landmark partnership connects the energy of T10 cricket with the fast-growing global esports ecosystem, driving brand visibility and fan engagement to new levels.

The alliance will deliver powerful exposure across broadcast, digital, and in-stadia platforms, while introducing esports-inspired activations to enhance the tournament experience for fans. The aim is to bring the worlds of live cricket and competitive gaming closer than ever before.

The Abu Dhabi T10 will run from November 18 to 30, 2025, at the Zayed Cricket Stadium, featuring top international players competing in action-packed 10-over matches. With BC.GAME Esports on board, the league will strengthen its appeal to younger, digital-first audiences across global markets.

“We’re excited to welcome BC.GAME Esports as our Principal Partner,” said a T10 League spokesperson. “Season 9 will be our biggest yet, with expanded global reach and enhanced fan experiences — and we are confident that BC.GAME Esports will return again next year.”

A BC.GAME Esports spokesperson added: “Partnering with Abu Dhabi T10 gives us the perfect platform to expand our community and create unique experiences that unite cricket fans and gamers worldwide.”

This partnership reflects Abu Dhabi T10’s commitment to innovation, youth engagement, and global growth, making 2025 one of its most exciting seasons yet.

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