UAE's New Regulations for 2025 - Impact on Businesses and Residents

As we enter 2025, the UAE is implementing several significant changes that will impact businesses, residents, and visitors. Here are the key updates to be aware of:

Emiratisation Requirement

Private sector companies with a workforce of 20 to 49 employees are now mandated to hire at least two Emirati nationals to contribute to the nation’s workforce diversification goals.

Expansion of Plastic Ban

The UAE will soon expand its plastic ban to include Styrofoam cups, containers, and products featuring plastic stems, aiming to reduce environmental impact further.

Salik Surge Pricing

Starting at the end of January, the Roads and Transport Authority (RTA) will introduce surge pricing for Salik tolls, with the base fee set at AED 6.

Increase in Corporate Tax

Large multinational companies will now be subject to a corporate tax rate of 15% on profits, up from the previous rate of 9%.

Lowering of Minimum Driving Age

A new federal decree law has reduced the minimum driving age to 17, allowing younger residents greater access to driving privileges.

Increase in Sewerage Fees

Sewerage fees will be adjusted to 1.5 fils per gallon, up from the previous rate of 1 fil, reflecting the increased cost of maintaining infrastructure.

Reinstatement of Alcohol Tax

A 30% tax on alcoholic beverages has been reinstated, which may lead to higher prices in bars and restaurants across the UAE.

New Parking Pricing Policy

Public parking near event zones will now be charged at AED 25 per hour, in an effort to manage demand during peak periods.

Fees for EV Charging Stations

Electric vehicle owners will now be charged AED 1.5 per KWH plus VAT for fast DC charging, as the previously free EV charging stations are no longer available.

These regulatory changes will shape the UAE’s landscape in 2025, bringing challenges and opportunities for residents, businesses, and the environment.