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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.

Business

Dubai’s Burj Al Arab is getting a facelift: Inside the iconic hotel’s first major renovation

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The world’s most famous ‘seven-star’ hotel is officially getting some work done. For the first time since its doors swung open in 1999, the Burj Al Arab is undergoing a massive restoration. Don’t worry, though, the sail-shaped structure isn’t going anywhere. Jumeirah Group is just making sure this Dubai luxury property stays looking fresh for the next generation.

What’s the plan

This isn’t just a quick coat of paint. We’re talking about an 18-month phased restoration led by the renowned designer, Tristan Auer. If the name sounds familiar, it’s because he’s the mastermind behind the stunning Hotel de Crillon in Paris and a protege of the legendary Philippe Starck.

The hotel will, however, be running during the renovation process, which also includes modernising the interiors. 

Why is Burj famous

The Burj Al Arab is more than just a place to sleep, rest and enjoy the luxury comforts, it’s basically the face of Dubai. Here’s a quick refresher on why this building is iconic:

  • The height: It towers at 321 meters on its own private island.
  • The bling: The interiors are packed with marble, gold leaf, and Swarovski crystals.
  • The icon status: From helipad tennis matches with Roger Federer to its massive 450kg crystal chandelier, it put Dubai on the luxury map 27 years ago.

Preserving the icon

As Dubai grows, the city is shifting its focus toward preserving its modern icons. By giving the Burj Al Arab a thoughtful facelift now, they’re ensuring that the ‘Sail of Dubai’ remains the ultimate symbol of global luxury without losing the original character that made it famous in the first place.

According to the Jumeirah Group, the renovation is aimed at preserving one of the emirate’s most famous symbols for future generations.

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Announcements

DIFC unveils relief package to ease financial pressure for more than 8,000 companies

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The Dubai International Financial Centre (DIFC) has today announced a comprehensive suite of temporary economic support measures designed to fortify its business and retail community. Effective immediately, the package addresses short-term operational pressures, ensuring the DIFC ecosystem remains the most resilient financial hub in the MEASA region.

As the global economy navigates a shifting landscape, the DIFC Authority is taking a proactive stance to provide financial reassurance and administrative flexibility to its 8,800+ active firms.

Targeted financial & operational support

The relief measures are specifically designed to stabilise cash flows for both commercial tenants and retail operators. Key initiatives include:

  • Flexible Payment Solutions: Customised payment plans for retail and commercial sectors.
  • Licensing Ease: New instalment plans for license renewal fees to reduce upfront capital requirements.
  • Administrative Grace Periods: Extensions on payments related to the Registrar of Companies, Data Protection Department, and lease contract filings.
  • Workforce Support: Deferred timelines for registering employees into the DIFC Employee Workplace Savings (DEWS) scheme.

Regulatory flexibility

In tandem with the DIFC Authority, the Dubai Financial Services Authority (DFSA) is introducing regulatory relief to maintain market momentum. These measures will support existing regulated firms and streamline the authorisation process for new entities seeking to enter the Dubai market.

“At DIFC, we stand alongside our clients, partners, and employees with a clear commitment to provide support and reassurance when it is needed most,” said Arif Amiri, Chief Executive Officer of DIFC Authority.

The announcement comes as DIFC continues its Zabeel District expansion, which is set to house over 42,000 companies. By prioritising the human and financial health of its current partners, DIFC is reinforcing Dubai’s position as a top-four global financial centre that prioritises stability alongside innovation.

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Announcements

Dubai ad agency turns billboard into a self-funded tribute of gratitude and love for the UAE

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As global markets navigate a landscape of uncertainty, the UAE continues to stand as a beacon of stability and resilience. While business leaders across the region have applauded the nation’s defence mechanisms and leadership, one Dubai-based advertising firm is moving beyond words and into action.

NextWhat Advertising has unveiled a massive, self-funded tribute billboard at the Dubai World Trade Centre Roundabout. In a move that breaks industry norms, the agency has bypassed commercial revenue to dedicate one of the city’s most premium outdoor spots to a message of solidarity and love for the UAE leadership.

The billboard, strategically located in the parking area facing the flow of traffic from Emirates Towers toward Zabeel Road and facing the iconic Sheikh Zayed Road, carries a heartfelt message honouring the strength, wisdom, and commitment to unity that defines the UAE’s path forward.

Gratitude for leadership

While Corporate Social Responsibility (CSR) campaigns are common, they are almost exclusively funded by clients. NextWhat is pioneering a different path: the billboard owner acting as the benefactor.

“Typically, we see clients using CSR funds for these types of messages. Among outdoor media players, we are amongst the first few to have done this entirely on our own,” says Tanvir Shah, Founder and Managing Director of NextWhat Advertising. 

“We’ve spent our own money and used our own premium space, no sponsorship, no clients, to show our genuine gratitude for the safety and leadership the UAE provides.”

From Mumbai to the world stage

The man behind the move, Tanvir Shah, is a first-generation entrepreneur with a legacy of Thinking Big. A graduate of Mumbai’s prestigious Sydenham College and a veteran of The Times of India, Shah launched his first venture in 1992. Today, his footprint spans India, Sri Lanka, and the UAE.

Under Shah’s leadership, NextWhat has become synonymous with unmissable brand experiences. By dedicating their state-of-the-art digital and large-format sites to a national cause, the company is demonstrating that in the UAE, the bond between the private sector and the state is built on more than just commerce; it is built on shared resilience.

United we stand as a family

Today, as business leaders and residents alike confront uncertainty, they do so not as guests in a foreign land, but as a united family standing in defence of the home that has embraced them. This bond has been forged through years of shared milestones and a collective belief that, regardless of origin, hearts can beat as one for the Emirates.

“The UAE has given us extraordinary opportunities and unwavering support. Just as it welcomed us during times of prosperity, we stand with it now in moments of challenge. We are not merely expatriates or guests; we are family. Irrespective of nationality, we have consciously chosen this country as our home, and we hold it close to our hearts. Our loyalty has only grown stronger through the trust and confidence shown by the nation’s leadership. This land has embraced us with dignity, and the least we can do is stand by it. At the end of the day, we are one,” concluded Shah.

Click on the link to see a video of the ad: https://www.instagram.com/reels/DWqPp7EjKCU

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