Good morning from The National on December 29, 2025.
Here is your digest of what is making the headlines in the Emirates.
Soft drinks in the UAE will now be taxed according to the amount of sugar content. Getty Images
A New Year action plan by the UAE government to clamp down on sugar-laden drinks has been hailed as a crucial step in boosting the long-term health of the nation.
A new pricing strategy, to come into effect on January 1, will see the rate of tax directly linked to the amount of sugar contained in drinks, with higher levies for products with larger volumes of sugar for every 100ml.
Medical and dental professionals said the policy will help to address the root causes of health crises facing the Emirates and the wider world.
“The policy encourages both manufacturers and consumers to choose low-sugar or natural-sugar alternatives,” said Dr Ali Elhouni, a consultant endocrinologist at Medcare Royal Specialty Hospital Al Qusais.
The country's obesity rates are predicted to hit record levels by 2050, while across the Middle East and North Africa region it is believed 163 million people will have some form of diabetes by the same year.
Etihad Rail is to launch passenger services next year. Wam
The UAE's national rail project will go full speed ahead next year, with its long-awaited passenger line moving into clear view.
Etihad Rail has already confirmed that passenger trains will hit the tracks next year, helping to usher in a public transport revolution years in the making.
Passenger numbers across the Etihad Rail network are expected to reach 36 million by 2030. Trains will travel at speeds of up to 200kph and carry as many as 400 people, running on the same lines as freight trains.
The service will help to connect the emirates, while addressing traffic congestion and supporting key sustainability goals.
John Dennehy looks at what the future holds for Etihad Rail here
Sheikh Khalifa Medical City provided a one-dose treatment aimed at older patients. AFP
A leading Abu Dhabi hospital has become the first in the world to deliver a pioneering gene-therapy treatment that is poised to offer a lifeline to older patients with spinal muscular atrophy.
Sheikh Khalifa Medical City successfully administered Itvisma, a one-dose drug that works to replace the defective SMN1 gene responsible for the debilitating disease, under the supervision of the emirate's Department of Health.
Authorities did not reveal any details about the patient who received the treatment or when the procedure took place.
The drug, developed by Swiss pharmaceutical company Novartis, was given accelerated approval by the UAE on November 25, after clinical trials that showed sustained improvements in patients' motor abilities.
It was only the second country, after the US, to approve the use of Itvisma, which for children aged two and above as well as teens and adults with SMA.
Dubai will post 9,884 Dubai Police officers, 1,900 medical staff, 1,754 firefighters and 635 ambulance workers to help see in 2026 safely. Read more on the emirate's comprehensive New Year's Eve plan here
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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