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2025 Price Hikes in the UAE: What You Need to Know

2025 Price Hikes in the UAE: What You Need to Know
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As the UAE adjusts its cost structures across various sectors, residents are bracing for notable changes in daily expenses. Here's a breakdown of the key price hikes to expect this year:


1. Salik Toll System

Starting late January, Salik introduces dynamic pricing:

  • Peak hours (6–10am, 4–8pm): AED 6
  • Non-peak hours: AED 4
  • 1am–6am: Free

This marks the first toll revision since 2007, projected to generate AED 60–110 million annually.


2. Alcohol Sales Tax

Dubai reinstates its 30% municipality tax on alcohol from January 1, following a two-year suspension aimed at boosting tourism.


3. Sewerage Tariffs

Gradual increases over three years:

  • 2025: 1.5 fils per gallon
  • 2026: 2 fils per gallon
  • 2027: 2.8 fils per gallon

The hike supports water conservation and infrastructure upgrades.


4. Insurance Premiums

Health and motor insurance premiums are rising due to inflation and higher healthcare/vehicle repair costs. Health insurance is expected to see steeper hikes.


5. EV Charging Tariffs

New UAEV rates take effect in January:

  • DC chargers: AED 1.20/kWh
  • AC chargers: AED 0.70/kWh
  • Plus VAT

UAEV also launches an app for station locations and payments.


6. Parking Fees

Effective March:

  • Premium parking (peak hours): AED 6/hour (8–10am, 4–8pm)
  • Non-peak hours: AED 4/hour
  • Event zones: AED 25/hour near major venues (e.g., Dubai World Trade Centre).

Sharjah’s Al Dhaid City introduces paid parking from January 1.


7. Consumer Goods Pricing Regulations

The Ministry of Economy introduces measures for nine essential goods, including cooking oil, eggs, dairy, and bread. Highlights include:

  • Price monitoring: Approval needed for hikes.
  • Transparency: Clear unit pricing required.
  • Ethical conduct: Guidelines for fair practices.

These policies aim to stabilize markets and protect consumers.

With these adjustments, residents are encouraged to stay informed and plan their budgets accordingly. As the UAE continues to invest in infrastructure and sustainability, these changes reflect a focus on long-term development and improved services.

News Source: Gulf Business

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Maryam Pervez

Written by Maryam Pervez

Maryam is the Managing Editor at HiDubai, bringing 8+ years of expertise in marketing, social media, and content development. She holds a Master's degree in Marketing Comms from Middlesex University.
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