2026 is already shaping up to be a year of significant changes in the UAE. School Fridays are shorter, intercity trains are set to start running, air taxis are preparing for takeoff, and single-use plastics have been officially banned. Here’s a closer look at the UAE 2026 updates that will influence how we live, work, and move around this year.
1. ‘Year of Family’ Declared in the UAE
President Sheikh Mohamed bin Zayed Al Nahyan has officially designated 2026 as the Year of Family. The initiative aims to place families at the heart of UAE life, promoting policies and programmes that reinforce family values, preserve cultural heritage, and prioritise the well-being of future generations.
2. Unified GCC Tourist Visa on the Horizon
Travel across the Gulf is set to become much simpler in 2026. A single GCC tourist visa covering all six member countries – UAE, Saudi Arabia, Oman, Qatar, Kuwait, and Bahrain – is expected to launch. Visitors will no longer need separate permits for each country, making regional tourism more accessible and boosting travel opportunities.
3. New VAT and Sugary Drinks Tax Rules
From January 1, 2026, the UAE simplified its VAT system for businesses. Self-invoicing under the reverse charge is no longer required if standard transaction records are maintained. Meanwhile, sugar-sweetened beverages are now taxed based on sugar content rather than a flat 50%. Drinks with higher sugar levels face steeper taxes, encouraging manufacturers to reformulate products and promoting healthier consumer choices.
4. Advertiser Licence now Required for Content Creators
Influencers, content creators, and advertisers must obtain an official Advertiser (Mu’lin) Permit by January 31. This applies to anyone promoting or reviewing products on social media, even if unpaid. The one-year permit is free for the first three years, giving creators time to register. The initiative aims to regulate online advertising while supporting the expanding digital content sector.
5. Major Federal Law Reforms Announced
Several legal changes are coming in 2026:
• The legal age of maturity drops from 21 to 18, allowing young adults to manage finances earlier.
• Assets of foreign residents who pass away without heirs will now be designated as charitable endowments.
• A child digital safety law enforces age verification, content filtering, and restrictions on gambling-related games.
• Higher education and scientific research governance is updated with new licensing standards and alignment with labour market needs.
Additional updates include stricter penalties for drug use, harsher punishments for sexual offences against minors, and revised foster care policies permitting foreign residents and single women to care for state-managed children.
6. Paid Parking Introduced in more Dubai Communities
Dubai is rolling out paid parking in 2026. Dubai International City introduces paid zones from February 1 (8am–midnight), with Sundays and public holidays free. Discovery Gardens follows on January 15. Residents without existing facilities get one free permit per unit; additional vehicles require a subscription. The measure aims to improve parking management and commuter convenience.
7. Friday Prayers and Shorter School Days
Friday prayers now start at 12.45pm across the UAE, effective January 2. Private schools and early childhood centres adjusted schedules accordingly, with students finishing by 11.30am on Fridays from January 9. The change helps families and staff return home on time while streamlining weekend routines.
8. Etihad Rail Passenger Services Set to Launch
Etihad Rail is preparing to start passenger services in 2026, connecting 11 cities from Al Sila to Fujairah. Travel times include 57 minutes between Abu Dhabi and Dubai and just over 100 minutes to Fujairah. Each train carries up to 400 passengers, with annual ridership projected at 36.5 million by 2030. This will offer faster, smoother intercity travel for commuters and leisure travellers alike.
9. Air Taxis to Transform Inter-Emirate Travel
Dubai’s electric air taxi project is expected to launch in 2026, offering a new urban transport option. Each aircraft carries four passengers and a pilot, flying over 300km/h for distances exceeding 200km—potentially reducing inter-emirate travel to under 30 minutes. The first vertiport is under construction at Dubai International Airport, with more planned near Palm Jumeirah and Dubai Mall.
10. Banks Phase out SMS OTPs
UAE banks are enhancing online security by phasing out SMS-based one-time passwords (OTPs). From January 6, all online card payments must be authenticated via a bank’s mobile app. The move follows UAE Central Bank regulations to reduce fraud risks such as SIM swapping and phishing, making digital payments safer for all users.
11. Nationwide Ban on Single-Use Plastics
From January 1, 2026, the UAE banned the import, production, and sale of certain single-use plastics, including cups, lids, cutlery, plates, straws, stirrers, and Styrofoam food containers. Thin paper bags under 50 microns are also prohibited, extending Dubai Municipality’s 2025 restrictions. The ban represents a major step toward sustainability, and its effects will be visible to residents and businesses quickly.
12. Sugar tax and health-driven consumption
The UAE’s revised sugar tax framework reflects a broader policy shift towards preventive healthcare and sustainable consumption. By taxing sugar-sweetened beverages based on their sugar content rather than a flat rate, the government is directly incentivising manufacturers to reformulate products and reduce sugar levels. This approach aligns fiscal policy with public health objectives, encouraging healthier consumer choices while supporting long-term reductions in lifestyle-related diseases. For businesses, the move necessitates greater transparency in labelling, product innovation, and closer alignment with regulatory standards, while for investors it signals the UAE’s willingness to use targeted taxation as a tool to shape responsible markets rather than simply generate revenue.
13. Advancing the cashless economy
The UAE’s push towards a cashless economy continues to gain momentum, underpinned by digital wallets, instant payment platforms, and regulatory support for fintech innovation. Reduced reliance on cash improves transaction efficiency, enhances financial transparency, and strengthens anti-money laundering controls across the economy. For consumers and businesses alike, digital payments offer speed, convenience, and improved integration with e-commerce and government services. From an economic perspective, the shift supports financial inclusion, lowers transaction costs, and reinforces the UAE’s ambition to position itself as a leading global hub for digital finance and smart economic infrastructure.
Conclusion
As the UAE enters 2026, the pace of transformation across economic, social, and regulatory spheres is striking. From historic infrastructure launches like Etihad Rail and landmark visa reforms to innovative tax changes and enhanced business frameworks, the nation continues its strategic pivot toward sustainable growth, diversification, and global connectivity. These developments reflect the UAE’s broader vision to strengthen its role as a business and innovation hub, improve quality of life for residents, and deepen regional integration.
