Good morning, lovely people, and happy new year. We hope you had the chance to celebrate with your loved ones and recuperate ahead of the back-to-school season.

Our first issue of the year is regulation and legislation-heavy, with several new regulations taking effect as of the start of the month, including a wider plastics ban and a new minimum wage for Emiratis in the private sector — as well as new federal decree laws that set new rules for business contracts, asset management, and buyer protections. We have more in the news well, below.

WEATHER- The first few days of 2026 have brought warm weather and sunny skies — and the theme is set to continue throughout the week. Expect a high of 26°C and a low of 18°C in Dubai, along with a high of 25°C and a low of 16°C in Abu Dhabi. The National Center of Meteorology also warns of foggy conditions in the early morning.

PSAs-

New month, new fuel prices: The Fuel Price Committee has set January’s fuel prices, with all categories dropping sharply from December, according to a post on X.

The breakdown per liter:

  • Super 98 will cost AED 2.53, down from AED 2.70 (-6.3%);
  • Special 95 is AED 2.42, down from AED 2.58 (-6.2%);
  • E-Plus 91 is AED 2.34, down from AED 2.51 (-6.8%);
  • Diesel will be AED 2.55, down from AED 2.85 (-10.5%).

BANKING — Have you heard from your bank about OTPs? You’re not alone. Several major UAE banks have begun notifying customers that they will stop using one-time passwords (OTPs) starting tomorrow, switching to app-based authentication to approve online card purchases and other electronic transactions, Gulf News reports. Some banks had already started phasing out OTPs earlier last year.

What if you still prefer getting OTPs via SMS? While some banks could still offer this as an option, Gulf News says it will require a written agreement that would ensure liability for potential fraud is shifted to the customer.

SUSTAINABILITY — Your iced coffee drink and cutlery for to-go orders will look different now: The third phase of the UAE’s phased plastics ban has now entered into force, with plastic beverage cups and lids, plastic or styrofoam-based food containers, plates, and straws and stirrers all prohibited as of the start of the month. This follows the first phase of the ban, which started in 2024, and targeted single-use plastic bags, as well as polystyrene cups, plates and containers, stirrers, cotton buds, table covers and straws.

REGULATION — Higher minimum wage for nationals in private sector: The Human Resources and Emiratization Ministry will raise the minimum wage for Emiratis in the private sector to AED 6k per month, with the decision taking effect on 1 January 2026, according to a statement. The requirement applies to new and renewed work permits, and employers have until 30 June to update existing contracts.

The move is part of a phased climb — from AED 4k, to AED 5k, and now AED 6k — in private sector wages, as the government shifts its focus to compensation packages in addition to mere quotas.

More pay pressure ahead? Firms will need to shell out on pay to secure Emiratis in specialist and mid-senior roles, even as overall annual increases cools toward 1.6% in 2026, Cooper Fitch CEO Trefor Murphy recently told us.

Data point: Capital markets

17.2% — the amount gained by the DFM in 2025, while Abu Dhabi’s ADX was up 6.1%, according to Kamco Invest’s latest GCC Equity Markets 2025 report (pdf).

The comparison: The gains bucked a weak regional trend, with GCC equities down about 7% overall, leaving UAE markets ahead of the pack — and well clear of Saudi Arabia, where the Tadawul fell 12.8%.

The big story abroad

All eyes are still set firmly on the situation in Venezuela, as the US clarifies its position moving forward, with US Secretary Marco Rubio explaining that the US plans to dictate policy in the country rather than physically run or occupy it, as was previously suggested by US President Donald Trump. Trump issued a warning to Venezuela’s current de facto leader, Delcy Rodríguez, of a “big price” to pay if she does not comply with the conditions the US has set in order for the country to avoid any further attacks by the US. Those include: That the oil industry be “run for the benefit of the people”; an end to drug trafficking and “gang problems”; as well as the removal of Colombian militant groups and that the government not “cozy up” to “Hizbollah and Iran.”

Rodríguez has so far been “gracious” and open to meeting the US’ conditions, Rubio said.

In the meantime, the US plans to continue to block the entry and exit of oil tankers as “leverage” over Maduro’s successor. “We are going to make our assessment on the basis of what they do, not what they say publicly,” Rubio added.

^^The must-read on the topic: Donald Trump warns Venezuelan rulers as Washington prepares to dictate policy

MEANWHILE- Thousands of travelers were stranded for hours on Sunday in both Greece and Italy, as a collapse of radio frequencies hit air traffic communications in Greece and technical issues with the landing guidance system and poor visibility affected an airport in Milan that is mainly a hub for Ryanair flights, Reuters reported separately here and here. Flights have begun to resume after the issues were resolved.

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Market watch

Opec+’s core group is holding the line — at least for now. The eight producers, which are implementing voluntary production adjustments, agreed to maintain current production levels, reaffirming the decision taken in November to pause output hikes through 1Q 2026, according to a press release. The decision will uphold 3.24 mn bbl/d of production cuts, or 3% of global demand, after successive output increases between April and December.

Geopolitics crowds the room: Supply decisions aren’t being driven purely by demand, but rather by political uncertainty, with analysts suggesting that Opec+ is opting for stability over action at a time when tensions are at a peak.

Background: Tensions flared last week between Saudi Arabia and the UAE after the former launched airstrikes in southern Yemen against the separatist STC, which has been backed by the UAE in the past. Russia’s exports are under pressure from US sanctions over the war in Ukraine, while Iran is facing protests and US threats of intervention. The cherry on top was the kidnapping and detention of Venezuelan President Nicolas Maduro by the US. Analysts reckon that even if US oil majors invest USD bns in the oil rich country, a meaningful boost to Venezuelan crude output is unlikely for years, Reuters said.

An update on the situation in Yemen: Saudi Arabia has called for dialogue to end the ongoing military escalation, and the STC has welcomed the initiative, Reuters reports. This came hours after Yemen’s Saudi-backed government said it had retaken control of Mukalla, the key eastern port and capital of Hadramout, from the STC, who had seized it last month.

CIRCLE YOUR CALENDAR-

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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