From 1 January 2026, the United Arab Emirates will enter a new regulatory phase characterised by significant changes in taxation, the environment, the digital sector and economic practices. These reforms form part of a long-term vision aimed at modernising the economy, enhancing sustainability and accelerating the country’s digital transformation. For residents, businesses and investors, 2026 marks a real turning point.
A new tax targeting sugary drinks
One of the most noticeable changes concerns the tax on sugary drinks. Previously applied uniformly, this tax will now be calculated on the basis of the the actual sugar content of each product.
The aim is twofold: to encourage manufacturers to reduce sugar content and to encourage consumers to adopt healthier habits.
This more nuanced approach brings the Emirates into line with international public health standards. It will have a direct impact on prices, particularly for high-sugar drinks, whilst encouraging innovation in the agri-food sector.
An end to single-use plastics
Another major measure coming into effect in January 2026: a total ban on single-use plastics. Plastic bags, disposable cutlery, straws and other non-recyclable packaging will be banned for good.
This decision forms part of the UAE’s environmental strategy aimed at drastically reducing waste and accelerating the transition to a more circular economy.
Shops, restaurants and businesses will have to adapt by offering sustainable alternatives. For consumers, this change alters their daily habits but contributes to a lasting improvement in their environmental impact.
Enhanced banking security, end of one-time passwords via text message
In the digital sphere, the Emirates are taking a new step forward in terms of banking security. OTP codes sent via text message will be phased out in favour of more secure solutions such as banking apps, biometrics or advanced authentication systems.
This development aims to reduce fraud and strengthen the protection of personal data, against a backdrop of the widespread digitalisation of financial services.
Users should ensure that their banking apps are up to date and that their security settings are configured correctly.
Compulsory licence for content creators
From 2026, the content creators who publish promotional content, whether they are paid or unpaid, must have a official licence. This measure aims to professionalise the influencer sector, enhance advertising transparency and provide a clearer framework for commercial collaborations.
The aim is clear: to distinguish legitimate creators from undeclared practices, to protect consumers and to regulate a sector that has become strategic for the UAE’s digital economy.
Electronic invoicing and VAT adjustments
Businesses will also need to prepare for the widespread adoption of electronic invoicing, a key reform to strengthen tax compliance, automate audits and improve transparency.
This development affects both local companies and international organisations operating in the Emirates.
At the same time, some VAT rules will be adjusted, particularly with regard to tax returns, compliance and reporting. These changes are intended to bring the tax framework into line with international standards and to support the country’s economic growth.
A pivotal turning point for the UAE economy
All of these measures confirm one thing: The Emirates are stepping up their transformation. Digitalisation, sustainability, transparency and the structuring of new sectors are becoming national priorities.
For residents and investors alike, 2026 marks the start of a regulatory framework that is more demanding but also more mature, more secure and more closely aligned with the world’s major economies. Anticipating these changes will be essential in order to adapt quickly and take full advantage of the opportunities offered by this new cycle.
