The UAE is entering 2026 with a denser regulatory playbook for businesses, spanning tax, e-invoicing, hiring, and banking. Some measures are already live, others roll out in phases, but the direction is consistent — tighter reporting, clearer accountability, and higher compliance expectations.

Here’s a refresher on the rules that matter most for business leaders and investors this year:

E-invoicing onboarding begins

After long tracks on the roadmap, e-invoicing finally moves into execution mode this year. The Finance Ministry has locked in the technical standards and timelines, turning what was once a future compliance item into a 2026 operational reality.

What changes on the ground:

  • Invoices must be issued in a structured digital format;
  • Transmission runs through accredited service providers to a federal platform;
  • Invoice data is shared in near-real time with the tax authority;
  • PDFs, emailed invoices, and manual workarounds start to disappear;
  • The system is built on the OpenPeppol framework.

The key deadline this year is the July 2026 pilot, starting with a select group of large taxpayers. Companies with AED 50 mn+ in annual revenue must appoint an accredited service provider by 31 July 2026. Wider mandatory adoption follows in 2027.

VAT and tax procedures get a rewrite

The VAT and tax procedures tweaks we flagged last year are now live policy. From January 2026, refund timelines are tighter, documentation standards matter more, and some long-standing administrative friction has been quietly removed.

What’s changed:

  • A five-year limit now applies to claiming excess input VAT refunds or offsets;
  • Self-issued invoices under reverse-charge imports are no longer required, where adequate records are kept;
  • The window for voluntary disclosures tied to refund claims extends to two years, provided no assessment has been issued

There’s also a one-off grace period: Businesses can still claim older VAT balances — covering 2018 to 2020 — until 31 December 2026. After that, unclaimed amounts expire.

Sweetened beverages tax shifts to sugar-based pricing

The excise framework on sweetened beverages has been recalibrated. From 1 January 2026, the old flat 50% excise gave way to a tiered, sugar-linked model, directly tying tax liability to formulation.

The new breakdown:

  • 5-8g sugar per 100 ml: AED 0.79 per liter;
  • 8g+ per 100 ml: AED 1.09 per liter;
  • Below 5g per 100 ml: Exempt

To ease the switch, companies can offset excise already paid on unsold stock produced or imported under the previous regime.

Child digital safety law raises the compliance bar for platforms

The new federal child digital safety law is now part of the operating environment for platforms serving users in the UAE. It introduces stricter requirements around:

  • Age verification;
  • Data protection for minors;
  • Content filtering and access controls;
  • Explicit bans on children accessing gambling-style digital products.

Who feels it: Ad-tech, gaming, social media, streaming, and ed-tech platforms — especially those built around targeted ads, in-app purchases, or user-generated content — are most directly exposed.

Changes to civil transactions + age of maturity

A slate of new federal decree laws rewiring civil transactions, company mechanics, andthe general age of maturity is also coming into effect.

As of this year, the legal age of maturity drops from 21 to 18, allowing young adults the flexibility to manage finances earlier. Individuals as young as 15 are also authorized to manage their own assets. Plus: Assets of foreign residents who pass away without heirs will now go to charity.

On the contractual side, the law now mandates that pre-contract negotiations are explicitly disclosed, meaning silence that once sat in buyer-beware territory can now trigger liability.

Emiratization targets ratchet up again

The Emiratization dial keeps turning. In 2026, private-sector quotas rise to 10% foreligible companies, while the minimum wage for Emiratis in the private sector increases to AED 6k per month. Employers have until 30 June 2026 to align existing contracts.

Carrots and sticks: Miss the target and fines of AED 10k per unfilled role per month apply. Beat it, and companies can unlock fee reductions of up to 80% and preferential treatment in government programs.

Banking UX tightens as OTP rules kick in

Banks are also making good on their promise to tighten digital security. From 6 January 2026, stricter one-time password (OTP) rules applied across digital banking and payments.

What changes: SMS-based OTPs are being phased out, replaced by in-app authentication, more frequent prompts, and tighter verification thresholds — improving fraud controls, but adding friction at checkout.

Who feels it: E-commerce platforms, fintechs, subscription businesses, and any company built around seamless digital payments.

The plastic ban goes nationwide, and deeper

The single-use plastics ban you’ve been tracking is now in its tougher federal phase. What was previously a patchwork of emirate-level rules has expanded into a nationwide ban on the production, import, and trade of a broader range of plastic products.

That list now firmly includes cutlery, cups, lids, plates, straws, stirrers, Styrofoam food containers, plus single-use bags of any material below approved thickness thresholds.

Who feels it: Retailers, F&B operators, manufacturers, distributors, and logistics firms, especially those still carrying legacy inventory or relying on imported, low-margin disposables.

Paid parking expands to more districts

Finally, a reminder that the meter keeps spreading. Dubai’s listed parking operator Parkin continues expanding paid zones, with International City joining the system from 1 February 2026.

Tariffs range from AED 2 per 30 minutes to AED 25 per day, paid hours run from 8am to midnight, and residential permits are now in play, including one complimentary permit per unit.

Also worth looking out for

Executive regulations governing key parts of the recent amendments to the Commercial Companies Law. Economy and Tourism Ministry Undersecretary Abdullah Al Saleh confirmed earlier this week that Cabinet is working with local authorities to finalize five sets of executive regulations that provide guardrails for recent amendments to the Commercial Companies Law, while the Securities and Commodities Authority is working on four of its own.

The amendments, which are the biggest overhaul to the law in years, introduce delocalization, share class flexibility, drag/tag provisions, and clearer treatment of freezone companies — effectively bringing the mainland framework closer to common law practice.

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