Drinks in the UAE will soon be priced depending on the amount of sugar they contain per 100ml under a new amendment to the country's tax laws.
The new pricing system will come into effect from the beginning of 2026, the Ministry of Finance and the Federal Tax Authority (FTA) has confirmed.
The higher the sugar content per 100ml, the higher the tax cost per litre, marking a move away from the current flat fee.
“This amendment is part of the UAE’s broader efforts to promote public health, reduce the consumption of high-sugar products, and encourage manufacturers to lower sugar levels in their beverages,” the ministry said in a statement released on Friday.
“Unlike the previous model, which was based on product classification, the new system ties the tax rate directly to the level of sugar content, and by extension, to the associated health impact.
“This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices.”
The UAE introduced an extra tax on sugar-filled soft drinks in 2017, with experts previously telling The National the move had been a great success, leading to decrease in new diabetes cases reported.
A US study released this year estimated that 2.2 million new cases of Type 2 diabetes and 1.2 million new cases of cardiovascular disease occur each year globally due to sugary drinks.
In the Middle East, they directly contributed to about 15 per cent of diabetes cases, the study by researchers at the Gerald J and Dorothy R Friedman School of Nutrition Science and Policy at Tufts University found. The study was published in Nature Medicine.
Doctors back health drive
Dr Ahmed Abdul Karim Hassoun, a consultant endocrinologist at Dubai's Fakeeh University Hospital, said the tax strategy would encourage drink manufactures to reduce sugar levels in their products and help support nationwide efforts to cut diabetes rates.
“This is a commendable public health policy. By linking the tax directly to the sugar content in sweetened beverages, we are encouraging manufacturers to reformulate products with lower sugar levels,” Dr Hassoun said.
“This is particularly important in the fight against obesity, metabolic syndrome, and Type 2 diabetes, all of which are on the rise in the region.
“Reducing added sugars in daily consumption can have a significant long-term impact on preventing these chronic conditions.
“Still, to maximise the impact, this measure should be coupled with awareness campaigns to educate the public about the risks of excessive sugar intake.”
Regional strategy
After sugar taxes were introduced by the UAE and Saudi Arabia in 2017, Oman, Bahrain, Kuwait and Qatar followed suit. The move was motivated by the region’s high rates of obesity and diabetes.
Since then, Bahrain has reported the biggest drop in diabetes, from 19.5 per cent of the population in 2011 to 11.3 per cent in 2021. But that success has not yet been replicated in other Gulf nations.
Oman reported an increase in diabetes rates from 10.5 per cent to 13.8 per cent. In Kuwait, 24.9 per cent of people are now affected, up from 20.7 per cent a decade ago.
Mansoor Ahmed, an independent healthcare expert in the Mena region, has previously told The National that using taxation as a means to promote healthier diets was only one piece of the puzzle.
“While sugar tax does reduce calorie intake, it's not a singular solution to these health conditions. Reducing rates may take years or even decades to fully manifest,” he said.
UAE currency: the story behind the money in your pockets
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
