A tiered beverage tax set to launch in the UAE from January 1 is being hailed by medical and dental professionals as a “great” public health initiative that will finally address the “root causes” of the region’s rising health crises.
The new pricing system, which was announced in July by the Ministry of Finance and the Federal Tax Authority, links the tax rate directly to the level of sugar content per 100ml, marking an evolution from the flat-rate tax on soft drinks introduced in 2017.
Under the new pricing strategy, drinks containing between 5 and 8 grams of sugar per 100ml will be taxed at 79 fils (Dh0.79) per litre, while those containing 8g or more of sugar per 100ml will be subject to a tax of Dh1.09 per litre.
Beverages with fewer than 5g of sugar per 100ml, as well as those containing only artificial sweeteners, will be exempt from the new taxation rules.
“The policy encourages both manufacturers and consumers to choose low-sugar or natural-sugar alternatives,” said Dr Ali Elhouni, a consultant endocrinologist at Medcare Royal Specialty Hospital Al Qusais.
“This method is more effective than the usual flat tax and this connects financial policy with health results, which is important in a place where obesity and type 2 diabetes rates among young people are increasing.”
Concern over obesity and diabetes
The UAE obesity rates are forecasted to hit new highs by 2050, according to a Lancet study earlier this year. It showed that overweight and obesity prevalence among males aged 25-plus will increase from 84 per cent in 2021 to 94 per cent in 25 years, among the highest globally. For females, it is expected to rise to 95 per cent.
As for type 2 diabetes, it is estimated that there is nearly a 21 per cent prevalence among the UAE’s population as of 2024, according to the International Diabetes Federation. In the Middle East and North Africa region, it is believed 163 million people will have some form of diabetes by 2050, an increase from 85 million last year.
“Cutting back on sugar can significantly improve long-term health,” added Dr Elhouni. “Whenever possible, individuals should opt for natural sugars found in fruits instead of sugary drinks, as the body can digest these sugars more effectively.”
International precedence
While some may question whether these financial measures will lead to real-world change in the health space, international data suggests they do.
For example, in Ireland, a Sugar-Sweetened Drinks Tax was introduced in 2018, with independent evaluations showing that sugar consumption from carbonated soft drinks fell by 30.2 per cent in retail purchases and 19.8 per cent in food service settings within a year.
Similarly, the UK’s soft drinks industry levy, which also came into effect in 2018, showed a significant drop in the amount of sugar in people’s diets across the UK – about half in children and by a third in adults after the tax was announced in 2016 – according to the Journal of Epidemiology and Community Health.
Protecting the next generation
The medical community is particularly focused on how the tax might wean young people off high-sugar habits in the UAE. “I wish more individuals would see that drinking high-sugar beverages is closely related to obesity and type 2 diabetes,” said Dr Elhouni. “Even slight decreases in the daily consumption of these drinks can lead to significant health improvements.”
Sugars in drinks can be easy to over-consume because they are not as filling as food, he added. “But they still add calories that can lead to weight gain and metabolic issues.
“This is why it’s advised to eat whole fruits instead of drinking fruit juice, where it’s easy to add more sugar for better taste.”
Good for your teeth
It is not just metabolic health disorders, either, as high sugar consumption is also linked to faster dental decay. Dr David Roze, founder of Dubai’s Roze BioHealth and BioDental Clinics, also “strongly” supports the new sugar tax as it’ll help address the imbalances he frequently sees in the oral microbiome.
“From a dental perspective, this policy tackles one of the root causes of disease,” he told The National. “Reducing sugar exposure directly lowers rates of cavities, gum disease and tooth loss.”
Dr Roze said he commonly sees early signs of biological imbalances showing up in the mouth, such as aggressive tooth decay at a surprisingly young age, chronic gum inflammation and early bone loss around the teeth. There is often also advanced dental breakdown in patients with undiagnosed or poorly controlled diabetes or pre-diabetes.
“The underlying pattern is often frequent and hidden sugar exposure not just from soft drinks, but from sweetened coffees, flavoured teas, energy drinks and products marketed as ‘healthy’,” said Dr Roze.
“When sugar is consumed continuously throughout the day, the mouth remains acidic for hours, disrupting the oral microbiome and allowing harmful bacteria to dominate.”
A shifting retail industry
As obesity rates rise, there has been a move towards healthier lifestyles and decreased sugar consumption across the UAE in recent years, particularly in the retail sector.
The country’s healthy snacks industry is booming, as consumers demand more sugar-free, gluten-free, low-fat, plant-based and organic items. The healthy snacks market is expected to reach a projected revenue of more than $1 billion by 2033, a compound annual growth rate of 7.2 per cent, according to Grand View Research.
As more manufacturers incorporate alternative and natural sweeteners, such as stevia, the UAE’s sugar-free drinks market is also projected to reach $1.2 billion by 2033, with a CAGR of 9.3 per cent from this year, according to Deep Market Insights.
“By pushing manufacturers to create products with lower sugar content and backing public awareness efforts about healthy eating, we might witness a slow decline in obesity and associated chronic illnesses over time,” said Dr Elhouni.
“This should be included in a wider health promotion plan that focuses on education, better access to nutritious foods and increased awareness of preventing chronic diseases,” he added.
Company%20Profile
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UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
COMPANY%20PROFILE
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UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP
Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan
Women’s squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Killing of Qassem SuleimaniPaatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE’s implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The%20specs%20
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business