UAE to Link Drink Prices to Sugar Content Starting in 2026

The Ministry of Finance and the Federal Tax Authority have announced that taxes on sweetened beverages will be calculated based on their sugar content per 100 millilitres starting in 2026. The move aims to address rising rates of obesity, diabetes, and related chronic conditions by incentivising lower-sugar formulations.

This policy builds on the UAE’s existing tax on sugary soft drinks introduced in 2017, which has been credited with helping reduce the incidence of Type 2 diabetes. A US-based study estimates that sugary drinks contribute to 2.2 million new global diabetes cases and 1.2 million cardiovascular disease cases annually. In the Middle East, they were linked to approximately 15% of all diabetes cases, according to research published in Nature Medicine by Tufts University.

Sugar taxes were first implemented in the Gulf by Saudi Arabia and the UAE and were later adopted by Oman, Bahrain, Kuwait, and Qatar. While Bahrain saw diabetes prevalence drop from 19.5% in 2011 to 11.3% in 2021, Oman and Kuwait reported increases over the same period. Health experts note that while sugar taxes can reduce overall calorie intake, their full impact tends to unfold gradually as part of long-term public health strategies.