From Sugar Tax To Flying Taxis: 12 New Things UAE Residents Can Expect In 2026

The UAE has announced a host of new rules, updates and launches in 2026 - all aimed at making residents' lives easier and more fulfilling.

With the government approving the biggest ever federal budget for the upcoming year, the country has plans to enhance lives across every sector. The future is in focus, with new technologies and revamped rules taking centrestage.

From major tax reforms to the Etihad Rail, from flying taxis to new attractions, here is what lies ahead for UAE residents in the year 2026.

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1. Sugar tax

It was announced that from January 1, 2026, there will be a change in how taxes are applied to sugary drinks in the country.

The Ministry of Finance and the Federal Tax Authority said that from next year, the tax applied on sweetened beverages will be based on their sugar content, rather than their product category - which is a 50 per cent excise. This is aimed at making the country healthier.

2. Ban on import, production, and trade of single-use plastic

As a part of a phased approach to eradicate single-use plastic in the country, from January 1, 2026, the UAE will implement a comprehensive ban on the import, production, and trade of single-use plastic products.

This comes as part of the phased approach initiated in 2024 with the ban on plastic bags. Dubai and other emirates earlier imposed a ban on single-use plastic bags and implemented 25 fils tariff from January 1, 2024. The ban covered stirrers, Styrofoam food containers, table covers, cotton swabs, straws and single-use Styrofoam cups made of plastic.

It will now extend to single-use plastic cups and lids, single-use plastic cutlery, plastic food containers and plastic plates.

3. VAT rules

The UAE is set to simplify tax procedures with new value-added tax (VAT) rules to be implemented in 2026.

According to WAM, amendments to the existing law say that taxable persons will no longer need to issue self-invoices when applying the reverse charge mechanism. There will also be a five-year time limit for submitting requests to reclaim any excess refundable tax after reconciliation has taken place, among other changes.

4. Tax reforms

The UAE has announced sweeping tax reforms from 2026, aimed at making life easier for taxpayers and increasing transparency. There will be clearer rules and deadlines, including for claiming refunds.

The new rules also expand the Federal Tax Authority's (FTA) audit and investigation powers - a move that should translate into fewer disputes, quicker resolutions, and a more predictable process.

5. Mandatory e-invoicing for businesses

Starting in mid-2026, the UAE will implement a nationwide e-invoicing system in phases.

Under the new system, businesses must exchange invoices through a standardised electronic format - not just PDFs or scanned copies. These e-invoices will automate the invoicing process, ensure compliance with national tax regulations, and speed up operations.

6. Unified calendar for Indian schools

Indian curriculum schools across the UAE will formally shift to the Ministry of Education's (MOE) unified academic calendar starting April 2026. This marks a significant change for the institutions, which have traditionally followed an April–March cycle.

Schools are implementing a structured shift to lower the impact on students and the school community.

7. Etihad Rail

The eagerly anticipated nation-wide Etihad Rail is set to begin operations for passengers in 2026. Once fully operational, the network will link 11 major cities and regions, enabling residents to travel the length and breadth of the country easily.

The railway is expected to boost economies and change the real estate landscape of the country. It may also mean that more residents would move out of the cities and commute to work via train.

8. Flying taxis

Airborne taxis will become a reality for UAE residents next year, with over 100 heliports being converted into vertiports to accommodate electric vertical take-off and landing (eVTOL) aircraft.

At the Dubai Airshow this year, visitors could get up close with flying taxis to see what they look like inside. US eVTOL manufacturers Joby and Archer have signed agreements with local entities to launch operations and have been conducting test flights in the country for the past many months. Journeys that previously took hours will soon be completed in minutes.

9. Robotaxis on the roads

Speaking of the future of commuting in the city, robotaxis or self-driving taxis are set to be rolled out along Dubai's main highway, Sheikh Zayed Road, by next year.

Trial runs are currently being conducted, with the taxis reaching up to 72km/hr. Some driverless taxis will even have massage seats to offer the passengers more comfort.

10. Dubai Loop

Motorists in the UAE may soon be able to use the Dubai Loop - fast, efficient, and weather-resilient 17km underground transit system announced by Elon Musk this year.

US-based media company Bloomberg reported earlier, quoting a senior UAE minister, that the system would be functional in 2026.

11. Gitex at Expo City Dubai

It was announced that in 2026, Gitex will take place at Expo City Dubai, increasing the scale of the mega tech event.

The organisers plan to widen the event to include the entire city, offering international tech executives and investors a chance to explore the city.

12. World Trade Centre Roundabout reopening

The Dubai World Trade Centre roundabout is currently being converted to a surface-level intersection to improve traffic, with five new bridges set to be opened. Upon completion, the project will double the junction's capacity and cut average delays from 12 minutes to just 90 seconds.

Residents will soon be able to use two of these new bridges, with the current schedule showing one opening in March 2026 and the other in October 2026.

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