Dubai rang in 2025 with four significant Dubai new laws that took effect at midnight on January 1 — touching alcohol prices, plastic waste, residency status, and electric vehicle running costs. Whether you live in the emirate, run a hospitality business, or simply drive an EV, at least one of these changes likely affects you directly.
1. The 30% Alcohol Sales Tax Is Back
Dubai's 30% municipal sales tax on all alcoholic beverages was reinstated on January 1, 2025, after a two-year suspension. The levy — which covers every sector from hotel bars to standalone restaurants — was paused in 2023 in a move widely seen as an effort to make the city more affordable. That window has now closed.
Both of Dubai's licensed alcohol distributors, MMI (Maritime & Mercantile International) and African+Eastern, confirmed the reinstatement to their trade partners ahead of the deadline. To cushion the impact, African+Eastern pledged to hold December 2024 prices across all 33 of its Dubai stores and online throughout January, while MMI committed to maintaining current prices on more than 200 popular lines including Heineken, Moët & Chandon, and Absolut.
Industry observers expect the change to put pressure on hospitality margins and consumer spending, with Dubai's wine trade in particular bracing for a more challenging year ahead.
2. Single-Use Plastics Banned Across Dubai
Dubai's phased single-use plastic ban expanded significantly on January 1, 2025. Items now prohibited include plastic bags, flexible films, straws, cups, stirrers, tablecloths, plates, trays, containers, sticks, bottles, and cotton swabs with plastic stems.
The ban is part of a larger UAE sustainability strategy aimed at reducing plastic waste and pushing businesses toward eco-friendly alternatives. Companies that have not yet switched to compliant packaging should treat the deadline as a hard cut-off — not a guideline.
3. UAE Visa Amnesty Period Expired
The UAE visa amnesty, launched in September 2024 by the Federal Authority for Identity, Citizenship, Customs and Port Security, gave people living in the country with irregular residency status a penalty-free window to either regularise their situation or depart. The program was extended once — from an original end-date of October 31 — to December 31, 2024, due to overwhelming demand.
From January 1, 2025, the amnesty is over. Anyone still in irregular status now faces overstay fines of up to AED 50 per day, potential deportation, and — for employers — fines of up to AED 1 million for knowingly hiring undocumented workers.
4. EV Charging on UAEV Network Now Has a Fee
Electric vehicle owners who rely on the government-operated UAEV public charging network now pay standardised tariffs for the first time. The new rates, confirmed by UAEV, are:
- DC fast chargers: Dhs 1.25 per kWh + VAT - AC chargers: Dhs 0.70 per kWh + VAT
The move fits the UAE's broader energy-cost management policy and ends the effectively free public charging that early EV adopters had enjoyed. Drivers should update their budgets accordingly.
More Changes Coming Later in January
Two additional shifts are expected to roll out in January 2025. The Salik toll system will introduce dynamic pricing — adjusting gate fees based on real-time traffic — to reduce peak-hour congestion on Dubai's road network. The Dubai Land Department (DLD) is also launching its Smart Rental Index, designed to bring greater transparency to the property rental market by providing data-driven rent benchmarks across the city.
