The UAE is a country built on momentum, and now that it’s the first day of 2026, a series of policy shifts, infrastructure upgrades and sustainability-led initiatives are set to come into place across the country.
Here are the key changes coming to the UAE – and Dubai in 2026 and why they matter.
1. Phase 3 of Dubai’s single-use plastic ban begins
One of the most significant sustainability moves yet, Dubai’s single-use plastic ban enters its third phase from January 1, 2026. This stage will see plastic plates, food containers, tableware and beverage cups with plastic lids phased out entirely. First announced at the end of 2023, the ban has been rolled out in stages to give businesses time to adapt. The aim is to reduce waste, encourage reusables and accelerate Dubai’s transition towards a more circular, low-waste economy.
2. Sugar tax rules are changing
From the start of 2026, sugary drinks in the UAE will be taxed differently. A new tiered excise tax system will replace the flat-rate tax introduced in 2019, meaning drinks will now be taxed based on sugar content rather than product category. Drinks high in sugar, including artificial sweeteners, are likely to become more expensive, while lower-sugar options could benefit. The change forms part of a wider GCC effort to curb sugar consumption and improve public health.
3. Etihad Rail passenger trains are finally expected to launch
After years of anticipation, passenger services on Etihad Rail are set to start in 2026. Railway infrastructure is already in place and currently supports freight services, but the launch of passenger trains will be a major shift in how people travel between emirates. Once it opens, the railway is expected to significantly reduce journey times and offer a lower-emission alternative to car travel. A big win for sustainability.
4. Flying taxis are set to take off
Dubai’s flying taxi programme is scheduled to move from concept to reality in 2026. Developed by Joby Aviation, the electric air taxis are designed to cut travel times between key locations to as little as ten minutes. Initial vertiports are planned at Dubai International Airport, Palm Jumeirah, Downtown Dubai and Dubai Marina. While exact launch dates are still to be confirmed, the first vertiport is expected to be completed in early 2026.
5. Banks will phase out one-time passwords (OTPs)
UAE banks are moving away from one-time passwords sent via SMS or email, replacing them with in-app authentication through mobile banking platforms. The transition, led by the Central Bank of the UAE, began in mid-2025 and is expected to be fully implemented by March 2026. The shift is designed to improve digital security and reduce fraud, though it will require customers to rely more heavily on their banking apps for everyday transactions.
6. A unified GCC visa is expected to launch
A Schengen-style visa, officially named ‘GCC Grand Tours’, is expected to be introduced in 2026, and will allow visitors to travel freely between the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait and Oman under a single visa. While final details are still pending, the visa is expected to be available through an online platform and could significantly boost regional tourism while simplifying travel across the Gulf.
7. 2026 will be the UAE’s Year of the Family
The UAE has announced that 2026 will be designated the Year of the Family, shaping national initiatives, policies and projects across all seven emirates. Announced by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the year will focus on strengthening family bonds, supporting long-term stability and reinforcing the family’s role as a cornerstone of society — influencing everything from education to community planning.
