UAE amends excise tax on sweetened beverages: Here are the changes

The resolution also details the Federal Tax Authority’s procedures for product classification, including their addition to the official price list

Gulf Business

11 December, 2025

UAE amends excise tax on sweetened beverages: Here are the changes

Image credit: Getty Images

The UAE Ministry of Finance has issued Cabinet Decision No. (197) of 2025, unveiling a revamped structure for selective goods taxation, including revised rates and methods for calculating the selective price. The latest decision marks a significant update to the country’s excise tax framework, with a particular focus on introducing a “tiered volumetric model” for sweetened beverages.

The new decision replaces Cabinet Resolution No. (52) of 2019 and its subsequent amendments, according to a WAM report.

The amendment aligns with ongoing national efforts to promote public health and encourage healthier consumption patterns. It follows the recent revisions to Federal Decree-Law No. (7) of 2025 on excise tax, reinforcing the UAE’s commitment to reducing sugar-related health risks and building a more transparent tax environment.

Officials said the updated framework seeks to unify legislative guidelines governing excise goods, offering clearer definitions and more straightforward tax calculations. The move is designed to help taxable businesses better understand and fulfill their obligations while also supporting the country’s long-term health objectives.

Tax rates tied to sugar content

Under the new tiered model, excise tax on sweetened beverages will be directly linked to sugar concentration per 100 millilitres. Beverages containing 5 grammes or more but less than 8 grammes of sugar per 100 millilitres will incur a tax of Dhs0.79 per litre. Those with 8 grammes or more of sugar per 100 millilitres will be taxed at Dhs1.09 per litre.

Products with less than 5 grammes of sugar per 100 millilitres, as well as beverages containing only artificial sweeteners, will be exempt from excise tax, reflecting the government’s intention to encourage healthier consumer choices.

Compliance and classification measures

The resolution also details the Federal Tax Authority’s procedures for product classification, including their addition to the official price list. Taxable persons who fail to provide necessary laboratory reports or supporting documents will temporarily be subject to the highest sugar-content tax tier until appropriate certifications are submitted. Once verified, tax assessments may be revised.

All amendments tied to the tiered volumetric model are scheduled to take effect on January 1, 2026.

The Ministry of Finance emphasised that the new measures support the government’s broader agenda to reduce healthcare burdens associated with high sugar consumption while strengthening a clear, unified, and investor-friendly excise tax framework.

UAE UAE Ministry of Finance sugary drinks goods taxation tax amendment

UAE to shift Friday prayer time to 12.45pm from 2026, prompting early closures at schools

With the upcoming change, education providers across the UAE are preparing for another round of timetable adjustments

Rajiv Pillai

11 December, 2025

UAE to shift Friday prayer time to 12.45pm from 2026, prompting early closures at schools

Image: Getty Images

The UAE will introduce a nationwide change to Friday prayer timings from January 2, 2026, as part of a broader move to standardise schedules and support the country’s Year of the Family initiatives. The General Authority of Islamic Affairs, Endowments and Zakat has confirmed that Friday sermons and prayers will begin at 12.45pm across all emirates, replacing the current fixed timing of 1.15pm introduced in 2022.

The new directive marks the second major adjustment to Friday routines since the UAE transitioned to a Monday–Friday working week nearly four years ago. At the time, the shift aligned the country with global markets, prompted half-day schedules for many public-sector employees, and led schools nationwide to revise classroom timetables.

With the upcoming change, education providers across the UAE are preparing for another round of timetable adjustments. Most schools are expected to shorten the academic day on Fridays to ensure pupils and staff can attend the sermon and prayer, though they await formal guidance from the relevant education regulators.

In its circular announcing the revised timing, the authority called on all worshippers “to take care to adhere to the new timings” and confirmed that the changes apply nationwide from the first Friday of 2026.

Sharjah, which adopted a four-day working week in 2022 and did not adjust Friday prayer timings at the time, is expected to follow the new 12.45pm nationwide schedule unless otherwise specified by local authorities.

UAE

GCC cuts interest rates as dollar-pegged economies track Fed policy

The central banks of Qatar, Bahrain, Kuwait and Oman also reduced key rates by 25 basis points

Reuters

11 December, 2025

GCC cuts interest rates as dollar-pegged economies track Fed policy

Images: Getty Images

Gulf central banks cut key interest rates by 25 basis points on Wednesday, mirroring a move by the US Federal Reserve to reduce rates by a quarter of a percentage point in another divided vote.

The Fed signalled it will likely pause further reductions in borrowing costs with new projections indicating the median policymaker view of just one quarter-percentage-point cut in 2026, the same outlook as in September.

The oil and gas exporters of the Gulf Cooperation Council generally follow the Fed’s lead on interest rate moves as most regional currencies are pegged to the dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Saudi Arabia, the region’s biggest economy, cut its repurchase agreement (repo) rate by 25 bps to 4.25 per cent and its reverse repo rate to 3.75 per cent. The United Arab Emirates’ central bank reduced the base rate applied to its overnight deposit facility to 3.65 per cent, effective Thursday.

Gulf economies are all at varying stages of diversifying their economies away from hydrocarbons and develop non-oil sectors like real estate, tourism and manufacturing, which require billions in financing and investment.

Lower rates are expected to stimulate economic activity and bolster non-oil growth.

The central banks of Qatar, Bahrain, Kuwait and Oman also reduced key rates by 25 basis points.

GCC

Bitcoin dips below $90,000 as AI worries dent risk appetite

Standard Chartered on Tuesday slashed its expectations that bitcoin would hit $200,000 by the end of 2025, lowering its forecast to $100,000

Reuters

11 December, 2025

Bitcoin dips below $90,000 as AI worries dent risk appetite

Image credit: Getty Images

Cryptocurrencies tumbled on Thursday, December 11 and bitcoin fell back below the $90,000 threshold in a renewed signal of market jitters as fresh concerns about artificial intelligence profits weighed on technology stocks.

Risk sentiment turned sour after US cloud firm Oracle’s profit and revenue outlook missed forecasts and executives flagged higher spending – a sign AI infrastructure outlays are not turning profits as quickly as investors had hoped.

Bitcoin was last down 2.5 per cent at $90,056.24, while ether tumbled 4.3 per cent to $3,196.62, erasing the past two days of gains, extending weakness that began in the US trading session on Wednesday after the Federal Reserve cut interest rates.

Stocks in Asia fell and futures pointed to lower openings in Europe and the United States.

“What we saw last night was even though risk assets were doing well, crypto didn’t really want to know about it,” said Tony Sycamore, market analyst at IG in Sydney. “The crypto space really needs to see more convincing evidence that the washout we saw from that October 10 selloff is complete, and at this point in time it just doesn’t look like it’s there.”

Standard Chartered on Tuesday slashed its expectations that bitcoin would hit $200,000 by the end of 2025, lowering its forecast to $100,000.

“We think buying by Bitcoin digital asset treasury companies is likely over,” said Geoff Kendrick, global head of digital assets research at Standard Chartered. “As a result, we now think future Bitcoin price increases will effectively be driven by one leg only – ETF buying.”

Artificial Intelligence AI Asia Bitcoin Cryptocurrencies

UAE unveils wage overhaul: New WPS sets benchmark for digital payroll

The system upgrade aims to boost operational efficiency, strengthen data integration, and create a secure environment for managing wage transfers

Gulf Business

11 December, 2025

UAE unveils wage overhaul: New WPS sets benchmark for digital payroll

Image credit: WAM/Website

The Ministry of Human Resources and Emiratisation (MoHRE) in UAE has launched an upgraded version of the Wage Protection System (WPS), developed in collaboration with the Central Bank of the UAE and Al Etihad Payments, the national payments service provider owned by the Central Bank. The update is being implemented alongside several MoHRE-accredited financial institutions through their respective digital platforms, marking a significant step forward in the UAE’s ongoing push for smarter, more transparent labour market processes.

The enhanced system was rolled out under the ministry’s partnership with e& Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Community Bank. According to MoHRE, the upgrade supports broader national goals to advance the UAE’s Zero Government Bureaucracy Programme and improve the ease of doing business. It also reinforces government efforts to adopt smart technology, strengthen market competitiveness, and protect the rights of all labour market participants.

System covers 99 per cent of private-sector workforce

The Wage Protection System currently covers more than 99 per cent of private-sector workers, whose salaries are processed through the system by their employers. Monthly wage transfers now exceed Dhs35bn, according to WAM.

In a press statement, the ministry said the upgraded version of the WPS makes it easier and faster for employers to manage salary payments, thanks to real-time data integration between MoHRE’s systems and financial institutions via the Central Bank. This integration allows users to rely on digital platforms to access smart, efficient, and secure salary-processing services.

Faster registration and improved data integration

MoHRE noted that the new version accelerates registration and verification procedures while enhancing communication between companies and relevant authorities. The system upgrade aims to boost operational efficiency, strengthen data integration, and solidify a secure and reliable digital environment for managing wage transfers.

The ministry described the update as a “notable leap” in wage management, driven by direct electronic integration. The enhanced platform enables employers to complete all wage-processing procedures digitally through automated data retrieval from MoHRE systems. It also improves salary-tracking accuracy and ensures timely wage disbursements to workers. These improvements, MoHRE said, support the UAE’s broader efforts to build a sustainable work environment and reinforce confidence in the national economy.

Strengthening governance and supporting compliance

The upgraded WPS also contributes to labour market stability by empowering supervisory bodies to enhance governance standards within the system. It ensures that employers comply with the Federal Decree-Law regulating employment relationships and with relevant regulatory decisions.

MoHRE stated that the system boosts labour market efficiency and agility through integrated digital financial services. It also provides an accurate and comprehensive database that supports planning and strategic decision-making.

Reducing disputes and enhancing transparency

According to the ministry, the upgraded system strengthens cooperation between government entities, banks, and financial institutions. This integration ensures better transaction governance, reduces wage-related labour disputes, and enhances transparency across the labour ecosystem. These improvements support the objectives of the ‘We the UAE 2031’ vision, which places competitiveness, innovation, and transparency at its core.

MoHRE emphasised that the upgraded WPS reflects the UAE’s commitment to maintaining a transparent, balanced, and fair work environment. The Ministry said the new system represents a comprehensive digital transformation, aligned with international best practices in labour administration and financial governance. It expands the number of participating financial institutions, improves transfer-processing efficiency, and deepens integration with financial institutions’ digital platforms, enabling companies to manage financial operations with ease.

Under UAE labour legislation, private-sector establishments are required to pay workers’ wages monthly, both in the amounts and at the times defined in employment contracts. Payments must be made through the Wage Protection System, which facilitates salary transfers via approved banks, financial institutions, and exchange houses.

UAE Ministry of Human Resources and Emiratisation Botim Central Bank of UAE MOHRE WPS Al Ansari Exchange Lulu exchange GCC Exchange Wage Protection System

Top Business Influencers 2025

This is not simply a list of who is popular. It is a look at who is shaping conversations, inspiring the next generation and driving the Gulf’s business narrative forward

Gulf Business

11 December, 2025

The region’s business landscape is being reshaped by a new kind of influence, one driven not only by boardroom decisions, market performance or company scale, but by the ability to build communities, spark conversations and move audiences at speed. In an era where social reach can amplify strategic vision, the region’s most dynamic founders, executives and creators now operate at the intersection of business leadership and digital impact.

In this special feature, Gulf Business spotlights a selection of the UAE’s most recognisable business voices, individuals who command sizeable followings, shape public perception and increasingly drive regional dialogue across sectors such as beauty, real estate, technology, retail, aviation and lifestyle. These picks, referred below as Social Icons, have been ordered from biggest to smallest social media following, providing readers with a clear sense of the scale and reach each leader brings to the conversation.

Alongside these editorial picks, you will also find a series of extended full page profiles highlighting other key business personalities, referred below as Boardroom Icons, contributing to the evolution of the region’s economy. Together, they present a holistic view of influence in 2025, part entrepreneurial grit, part digital visibility and part strategic leadership.

This is not simply a list of who is popular. It is a look at who is shaping conversations, inspiring the next generation and driving the Gulf’s business narrative forward.