07/01/2025

8 Changes Happening in Dubai in 2025

Several significant changes are set to shape the city in 2025. From new economic policies to environmental initiatives, these updates will impact residents, businesses, and visitors alike. 

Here’s a roundup of some of the most important changes in Dubai that are expected to take effect in 2025.

1. New Emiratisation targets 

In 2025, Dubai is intensifying its Emiratisation efforts, aiming to increase the number of Emiratis in private sector jobs. 

In 2024, companies with 20–49 employees were required to hire at least one Emirati, and in 2025, they must hire two. 

The government has set ambitious targets for private companies to hire more Emirati workers, with a particular focus on sectors like technology, healthcare, and finance.

2. Increased plastic ban

Dubai is taking major strides toward sustainability in 2025 with an increased plastic ban. Starting from January 1, 2025, single-use plastic products, including items such as plastic stirrers, table covers, cups, styrofoam food containers, plastic straws, and plastic cotton swabs, will all be covered by the ban.

From January  1, 2026, the ban will extend to other single-use plastic products including plastic plates, plastic food containers, plastic tableware, and beverage cups and their plastic lids.

3. Salik surge pricing

In a bid to manage traffic congestion and optimise road usage, Salik surge pricing will be introduced in 2025. The toll system, which currently charges a flat fee for passing through Salik gates, will implement higher charge of AED 6 during peak traffic hours. This means commuters will pay more for using roads during rush hours and less during off-peak times.

This change is expected to reduce congestion by encouraging drivers to adjust their travel times, and also raise funds for road maintenance and infrastructure upgrades.

4. Tax on multinationals

Dubai is introducing a tax on multinationals operating within its borders in 2025. 

Starting January 1, 2025, new taxes in Dubai will reshape the financial landscape for businesses, particularly multinational enterprises (MNEs). The UAE will implement the Domestic Minimum Top-up Tax (DMTT), ensuring that large multinational companies pay a minimum of 15% effective tax on their profits.

While Dubai has long been known for its tax-free environment, this new corporate tax will help the UAE diversify its revenue streams and invest in its long-term economic growth.

5. Lowered driving age

In a significant shift, the legal age for obtaining a driver's licence in the UAE has been lowered to 17 as per the new federal decree-law on traffic regulation.

This move will allow young adults to gain independence earlier and is expected to foster a more mobile and self-sufficient generation. However, new drivers will face stricter regulations and higher insurance premiums to ensure road safety.

6. 30% alcohol tax

Starting in 2025, alcohol will be subject to a reinstated higher tax rate in Dubai. The government is introducing this measure as part of its broader push toward healthier living and sustainability. While alcohol will still be available at licensed venues and stores, the tax hike is intended to encourage responsible consumption and reduce the negative societal impacts of excessive drinking.

For consumers, this will mean higher prices at bars, restaurants, and retail outlets selling alcohol.

7. Congestion parking policy 

Parking in Dubai, particularly in the city centre and during busy event periods, will become more expensive in 2025. 

The congestion pricing policy for event areas introduces a fee of AED 25 per hour for public-paid parking spaces near event zones. This policy will be rolled out initially around the Dubai world trade centre during major events, starting in February.

8. EV charging station costs

As part of its transition to cleaner energy, Dubai will see an increase in the cost of using electric vehicle (EV) charging stations in 2025. 

From January 2025, EV users will benefit from transparent and standardised charging fees. Electric vehicle charging stations will no longer be free. The new fees will be set at AED 1.25 kwh plus VAT for rapid DC (Direct Current) chargers.