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EU carbon border tax enters definitive phase on January 1

The system applies to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, sectors identified by the EU as having a high risk of carbon leakage

Gulf Business
Gulf Business

01 January, 2026

EU carbon border tax enters definitive phase on January 1
Image courtesy: WAM/ For illustrative purposes

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The European Union’s (EU) carbon border tax will enter its definitive phase on Wednesday, January 1, 2026, the European Commission said, marking the start of full implementation of the bloc’s Carbon Border Adjustment Mechanism (CBAM).

Under the mechanism, EU importers of selected carbon-intensive goods will be required to declare the embedded greenhouse gas emissions in their imports and surrender CBAM certificates corresponding to those emissions, according to the commission.

Applications must be submitted before import and at the latest by March 31 for all concerned import companies.

The carbon border tax applies to imports of certain categories

The system applies to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, sectors identified by the EU as having a high risk of carbon leakage.

CBAM is designed to ensure that imported goods face a carbon cost equivalent to that borne by EU producers under the bloc’s Emissions Trading System, the commission said, supporting the EU’s climate objectives and preventing production from shifting to countries with less stringent emissions policies.

The definitive phase follows a transitional period during which importers were required only to report emissions without purchasing certificates.

From January, financial obligations under the mechanism will apply.

The commission said CBAM is a key element of the EU’s climate policy framework and will be progressively integrated alongside reforms to the emissions trading system.

Nvidia in talks to acquire Israel’s AI21 Labs in deal worth up to $3bn

Nvidia CEO Jensen Huang has described Israel as the company’s “second home.”

Reuters
Reuters

31 December, 2025

Nvidia in talks to acquire Israel’s AI21 Labs in deal worth up to $3bn
Image: Getty Images

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Nvidia NVDA.O is in advanced talks to buy Israel-based AI startup AI21 Labs for as much as $3 billion, the Calcalist financial daily reported on Tuesday.

Nvidia declined to comment, while AI21 was not immediately available to comment.

A 2023 funding round valued AI21 at $1.4bn. Nvidia and Alphabet’s GOOGL.O Google participated in that funding.

AI21, founded in 2017 by Amnon Shashua and two others, is among a clutch of AI startups that have benefited from a boom in artificial intelligence, attracting strong interest from venture capital firms and other investors.

Shashua is also the founder and CEO of Mobileye, a developer of self-driving car technologies.

Calcalist said AI21 has long been up for sale and talks with Nvidia have advanced significantly in recent weeks. It noted that Nvidia’s primary interest in AI21 appears to be its workforce of roughly 200 employees, most of whom hold advanced academic degrees and “possess rare expertise in artificial intelligence development.”

Calcalist said the deal to buy AI21 is estimated at between $2bn and $3bn.

Nvidia, which has become the most valuable company in history at more than $4tr, is planning a large expansion in Israel with a new R&D campus of up to 10,000 employees in Kiryat Tivon, just south of the port city of Haifa – Israel’s third-largest city.

Nvidia CEO Jensen Huang has described Israel as the company’s “second home.”

Nvidia has said that when completed, the campus will include up to 160,000 square meters (1.7 million square feet) of office space, parks and common areas across 90 dunams (22 acres), inspired by Nvidia’s Santa Clara, California, headquarters. Nvidia expects construction to begin in 2027, with initial occupancy planned for 2031.

Read: Lucid and NVIDIA partner to deliver Level 4 autonomous vehicles

Here’s what fuel will cost you in the UAE in January 2026

Super 98 petrol will be priced at Dhs2.53 per litre, down from Dhs2.70 in December 2025

Neesha Salian
Neesha Salian

31 December, 2025

Here’s what fuel will cost you in the UAE in January 2026
Image: Getty Images_Peter Cade/ For illustrative purposes

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The UAE announced fuel prices for January 2026 on Wednesday, with pump rates set to reduce across all fuel categories compared to December 2025.

The new prices will take effect from January 1, according to the announcement.

Fuel costs from January 2026

Super 98 petrol will be priced at Dhs2.53 per litre, down from Dhs2.70 in December 2025.

Special 95 petrol will cost Dhs2.42 per litre, compared with Dhs2.58 previously.

E-Plus 91 petrol will be sold at Dhs2.34 per litre, down from Dhs2.51.

Diesel will be priced at Dhs2.55 per litre, compared with Dhs2.85 in the previous month.

Prices in November 2025

In November 2025, prices dipped from October levels. For example, Super 98 dropped from Dhs2.77 to Dhs2.63.

Fuel prices in the UAE are reviewed monthly and adjusted in line with international market movements, following the country’s fuel price deregulation policy.

Saudi Arabia announces new sugar tax for soft drinks and sweetened beverages

ZATCA clarified that the new system fully replaces the existing model, which applied a fixed 50 per cent excise tax based on the retail price of sweetened beverages

Rajiv Pillai
Rajiv Pillai

31 December, 2025

Saudi Arabia announces new sugar tax for soft drinks and sweetened beverages
Image: Getty Images

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The Saudi Zakat, Tax and Customs Authority (ZATCA) will introduce a revised four-tier methodology for calculating excise tax on sweetened beverages, effective Thursday, January 1.

The move replaces the current flat 50 per cent excise tax rate with a sugar-content-based system, under which tax levels increase in line with the amount of sugar per 100ml. Sugar-free and low-sugar beverages will benefit from lower or zero excise tax, reflecting Saudi Arabia’s broader public health objectives and alignment with GCC-wide health initiatives.

ZATCA’s Board of Directors has approved amendments to the executive regulations of the Excise Goods Tax Law to support the shift. Under the new framework, excise tax will be calculated based on the total sugar content of ready-to-drink sweetened beverages, using a tiered bracket system.

The revised structure classifies beverages into four categories: drinks sweetened solely with artificial sweeteners and no added sugar; low-sugar beverages containing less than 5 grams of sugar per 100ml; medium-sugar beverages with 5 to 7.99 grams per 100ml; and high-sugar beverages containing 8 grams or more per 100ml.

ZATCA clarified that the new system fully replaces the existing model, which applied a fixed 50 per cent excise tax based on the retail price of sweetened beverages. The definition of sweetened beverages remains unchanged and covers all products to which sugar or sweeteners are added, including ready-to-drink products, concentrates, powders, gels and extracts that can be converted into beverages.

According to the authority, the revised methodology is designed to encourage manufacturers and importers to reduce sugar levels in their products, promote healthier consumer choices and support international best practices in public health taxation.

The change follows a decision by the Gulf Cooperation Council’s Financial and Economic Cooperation Committee to adopt a volumetric, tiered excise tax system across member states, based on sugar concentration rather than retail price.

Read: UAE’s new tax on sugary drinks: What it means for you, businesses

Saudi Arabia’s human-centred future: Quality of Life Program’s CEO shares insights

Khalid AlBaker discusses the strategic alignment of the kingdom’s six priority sectors and how Saudi Arabia is now leading a global conversation on how nations should measure and invest in the happiness of their citizens

Neesha Salian
Neesha Salian

31 December, 2025

Saudi Arabia’s human-centred future: Quality of Life Program’s CEO shares insights
Image: Supplied

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As Saudi Arabia nears the mid-point of its ambitious Vision 2030 journey, the metric for national success has shifted from pure economic output to a more human-centred paradigm: the Quality of Life (QoL) Program.

Under the leadership of CEO Khalid AlBaker, the programme is transforming the kingdom into a “Thriving-Lifestyle Economy”, where urban design, world-class entertainment, and social wellbeing are viewed as the primary engines of GDP growth and global competitiveness.

Before joining the QoL Program, Albaker held several positions and led projects in the sports, entertainment, and tourism sectors. In addition to membership in various committees, including the Saudi Dakar Rally Committee, Formula E, Jeddah Season, Hail Season, the MAHAD Program Transformation to MAHAD Academy, and the Tourism Sector Highlights and requirements, as well as the Investment Enablement of the General Entertainment Authority.

Before being promoted to lead QoL in mid-2022, Albaker was leading two sectors at the programme since mid-2020: chief delivery support officer, which is the core operation of the programme, as well as acting chief of marketing and communications officer.

From the launch of the region’s first “Harry Potter Experience” to a pioneering partnership with UN-Habitat to create the global Quality of Life Initiative (QOLI) Index, the program is moving beyond theory into tangible, data-driven results.

In this interview, AlBaker discusses the strategic alignment of the kingdom’s six priority sectors and how Saudi Arabia is now leading a global conversation on how nations should measure and invest in the happiness of their citizens.

Tell us about the Quality of Life (QOL) Program, and how it supports Saudi Arabia’s Vision 2030.

Founded in 2018, the Quality of Life Program is transforming Saudi Arabia by building a quality of life in the kingdom that the world can aspire to. Through smarter urban design, world-class culture, arts, entertainment, sports offerings, and municipal policies, we are enabling healthier, happier, and more active lifestyles for everyone in the kingdom – whether citizen, resident, or visitor.

Our work is closely aligned with Vision 2030’s three pillars: Vibrant Society, Thriving Economy, and Ambitious Nation. At its core, the program contributes to creating a vibrant society by shaping urban environments that enhance livability and everyday life through culture, tourism, sports, entertainment, safety, and well-designed public spaces.

At the same time, these efforts directly support the kingdom’s thriving economy by unlocking investment, creating jobs, and supporting long-term diversification.

Together, this progress strengthens an ambitious nation, elevating the global competitiveness of Saudi cities and positioning them as leading destinations to live, work, and invest.

Many countries treat quality of life as a by-product of growth. Why did Saudi Arabia decide to make it a strategic priority in its own right, and what key sectors does the programme focus on to drive impact?

In Saudi Arabia and in the QoL programme, we recognise that investments in culture, sports, tourism, health, and urban livability contribute to sustainable prosperity, creating new markets, diversifying income streams, and strengthening global competitiveness.

We call this the ‘Thriving-Lifestyle Economy’ and believe it reflects an evolution beyond traditional growth sectors and a focus on GDP, toward a people-first model where quality of life is both an outcome and a driver of economic performance.

To drive impact, we are focusing on six priority quality of life-related sectors that have the greatest potential to elevate the kingdom’s standard of living: culture and heritage, sports, entertainment and hobbies, tourism, urban design, and safety and security.

In 2024, these sectors contributed SAR74.5bn ($19.9bn) to Saudi GDP, non-oil revenues exceeded SAR17.8bn, and generated more than 368,000 jobs.

What is QOL Program’s role in the ecosystem of ministries, public funds, and the private sector?

As a Vision 2030 Vision Realization Program (VRP), we are mandated to work with partners across the public, private and non-profit sectors. We are currently collaborating with 23 implementing entities, with which we have over 173 initiatives underway, and have activated 100+ government assets for public use in sports, culture, and entertainment.

Our governmental partners include the Ministries of Health, Tourism, Media, Communications and Information Technology; alongside public sector organisations such as the Red Sea Authority, ROSHN Real Estate Development, and the Tourism Development Fund.

We are also welcoming international investors through platforms such as Furas, our municipal PPP investor platform that welcomed over 10,000 new investors in 2024 alone.

In addition and in line with Vision 2030, we are empowering local private sector companies and content, with local content contribution now over 39 per cent, well up from the 2019 baseline of 28 per cent and surpassing our target. In total, the QoL Program has stimulated in excess of SAR21.6bn (over $5bn) in non-government investment across its sectors, much of it linked to cultural and entertainment opportunities.

We are further supporting this investment by leveraging our governmental status to enable the right regulatory environment by introducing and activating laws that make new lifestyle opportunities both practical and appealing for private sector investment.

What are some of the most impactful initiatives implemented by the programme in 2025?

We came into 2025 ready to build on the strong results we achieved in 2024 across our six priority sectors, and as the year draws to a close, the programme has seen tangible progress across each of them.

In culture and heritage, this included completing the restoration of 140+ heritage sites, with two new sites registered on the UNESCO World Heritage List. In sports, we launched major sports facilities like the SFA Dome in Dammam, featuring 10 fields within the dome, while in entertainment and hobbies, we saw significant momentum with more than 9,000 entertainment licenses issued and over 1,171 hobbies events organised – a 160 per cent increase compared to 2023.

At the same time, urban design developments have been supported by the incredible 6,000 investment contracts valued at over SAR5bn issued in the sector. With 99.85 per cent of residents expressing confidence in safety and security, it’s another factor that has inspired 115.9 million tourists to visit, surpassing our target of 90.3 million for the year.

Throughout 2025, we also continued to advance a wide range of initiatives – from nurturing sporting excellence, with Saudi athletes securing 10 medals at the 2025 World Para Athletics Championships, to expanding entertainment offerings with the launch of the region’s first “Harry Potter Experience”.

We have also reached new heights in innovative modern urban design, with the Al-Faradha Walkway project selected as one of the top five projects globally in the Architizer Awards competition in the Environmental Architecture category.

Meanwhile, we continue to improve opportunities through training programmes, such as the Royal Institute of Traditional Arts “Wirth”, conducting 20 courses and 5 training tracks in Q2 2025 alone, qualifying more than 240 trainees to preserve heritage and cultural identity.

While final consolidated results for 2025 are yet to be announced, I can confirm that the number of international tourists has increased once again, with non-religious arrivals now constituting 59 per cent of the total numbers.

As a result, the kingdom ranked first globally as the destination with the highest growth rate in international tourist revenues during the first quarter of 2025 compared to the first quarter of 2019.

What can people living in Saudi Arabia expect to see from the programme in 2026 and beyond?

Fundamentally, we will continue to facilitate progress across those six priority sectors, with a clear focus on enhancing quality of life, livability and lifestyle for all. In many cases, we’ve already surpassed our original Vision 2030 targets, but this momentum only raises our ambition further.

We will continue to work in the coming year and beyond to steer the kingdom’s quality of life agenda in line with Vision 2030 and the aspirations of the Custodian of the Two Holy Mosques and HRH the Crown Prince toward elevating the quality of life for citizens, residents, and visitors.

How is Saudi Arabia contributing to the global conversation on how nations should think about human-centred development?

We want to show how targeted policies can bring tangible improvements in life expectancy and satisfaction as we lead the kingdom’s commitment to championing quality of life and convening global partners to advance sustainable urban development.

We recently partnered with UN-Habitat to launch the Quality of Life Initiative (QOLI) Index, leveraging Saudi Arabia’s role as a trusted international partner to invite countries and cities to exchange knowledge, lay the foundations for more ambitious and human-centric initiatives, and track progress toward quality of life-related UN SDG outcomes, including poverty, education, unemployment, and mobility.

To date, 80 cities have signed Memoranda of Understanding with UN-Habitat to be onboarded to the platform, including five Saudi cities, demonstrating how city-level priorities reflect a national commitment to advancing quality of life for all, at home and abroad.

Leading by example as a pilot city in the QOLI Index, Madinah is showcasing Saudi readiness and efficiency in collecting and collating urban quality of life metrics.

For other countries, what are some of the top lessons you would share from Saudi Arabia’s approach to quality of life investment?

We believe that the QoL Program and Saudi Arabia’s thriving lifestyle economy can reshape how the world views growth, investment, and livability. By putting people-first and using quality of life as a metric for success, national governments and local authorities can drive sustainable economic growth while also enhancing citizen satisfaction.

I would offer the example of Madinah, one of the first-mover cities joining the QOLI Index I mentioned. They utilised city-level data to identify social and economic opportunities, allowing the city to prioritise growth areas for investment, such as the healthcare sector and culture and recreation.

Meanwhile, the kingdom’s nationwide drive to enhance urban quality of life markers is reflected in the high scores Madinah’s residents gave the city for good governance, social cohesion, education completion, and the environment.

We look forward to learning more from both Saudi Arabia and around the world as the QOLI Index expands its scope.

Dubai RTA releases New Year 2026 service hours for metro, buses and parking

Passengers are advised to check the S’hail application for updated bus schedules during the New Year holiday

Rajiv Pillai
Rajiv Pillai

30 December, 2025

Dubai RTA releases New Year 2026 service hours for metro, buses and parking

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Dubai’s Roads and Transport Authority (RTA) has announced the operating hours for its services during the New Year holiday on Thursday, January 1, 2026. The schedule covers Customer Happiness Centres, vehicle testing centres, public transport services, marine transport, and public parking facilities across the emirate.

Customer Happiness Centres

All RTA Customer Happiness Centres will be closed on January 1, 2026. However, Smart Customer Happiness Centres located at Al Barsha, Al Twar, Al Kifaf, and the RTA Headquarters will continue to operate 24 hours as usual.

Vehicle testing and service provider centres

All service provider centres, including vehicle testing facilities, will be closed on January 1, 2026. Regular operations will resume on Friday, January 2, 2026, in line with approved working schedules.

Dubai Metro services

Red and Green Lines will operate as follows:

Wednesday, December 31, 2025
05:00 AM to 11:59 PM

Thursday, January 1, 2026
12:00 midnight to 11:59 PM

Dubai Tram services

Wednesday, December 31, 2025
06:00 AM to 11:59 PM

Thursday, January 1, 2026
12:00 midnight to 01:00 AM (early hours of the following day)

Public bus services

Image: Dubai Media Office

Passengers are advised to check the S’hail application for updated bus schedules during the New Year holiday.

Bus Route E100 will not operate from Al Ghubaiba Bus Station starting from the afternoon of December 31. The final trip will depart at 12:00 noon from Abu Dhabi and at 2:00 PM from Al Ghubaiba. Services will resume on January 4, 2026. During this period, passengers are advised to use Bus Route E101 operating from Ibn Battuta Bus Station to Abu Dhabi.

Bus Route E102 will operate from Ibn Battuta Bus Station on December 31 from 2:00 PM onwards until the end of the day.

Marine transport services

Updated operating hours for marine transport services during the New Year holiday can be accessed via the RTA link: https://rta.ink/4ieNSa0

Public parking

Public parking across Dubai will be free of charge on January 1, 2026, except for multi-storey parking facilities and Al Khail Gate (N-365). Parking fees will resume on Friday, January 2, 2026.

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