UAE Sugar Tax 2026: Drinks to Be Priced Based on Sugar Content
Starting in early 2026, the United Arab Emirates (UAE) will implement a new tiered tax system for sugar-sweetened beverages (SSBs). This move will change the pricing of sugary drinks based on their sugar content per 100ml, according to the Ministry of Finance (MoF) and the Federal Tax Authority (FTA). The greater the sugar concentration, the higher the tax per liter—a bold public health initiative aimed at reducing chronic diseases like obesity, type 2 diabetes, and cardiovascular conditions.
Why This New UAE Sugar Tax Rule Matters
The UAE's updated taxation strategy is a smart health policy tool to fight rising obesity and diabetes rates. It shifts away from a flat 50% excise tax on all sugary beverages and instead incentivizes beverage manufacturers to reduce sugar in their products.
According to the MoF:
“The new system ties the tax rate directly to the level of sugar content—and by extension—to the associated health impact.”
This system empowers consumers to make healthier choices while pushing brands toward health-focused product reformulation.
Health Experts in the UAE Support the Sugar Tax Reform
Dr. Ahmed Abdul Karim Hassoun – Fakeeh University Hospital Dubai
Dr. Hassoun, Consultant Endocrinologist at Fakeeh University Hospital, emphasized the positive public health impact:
“This is a commendable public health policy. By linking the tax directly to the sugar content in sweetened beverages, we encourage manufacturers to reformulate products with lower sugar levels.”
He noted this is crucial in tackling rising rates of obesity, metabolic syndrome, and Type 2 diabetes in the region.
“Reducing added sugars in daily consumption can significantly reduce the risk of these chronic conditions. However, it must be paired with public health awareness campaigns.”
UAE's Sugar Tax: A Regional Strategy to Curb Lifestyle Diseases
This isn’t the UAE's first sugar-related policy. The original sugar tax introduced in 2017 led to reduced diabetes cases and was quickly followed by similar policies in Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait.
📊 Diabetes Trends in GCC:
CountryDiabetes Rate Change (2011–2021)Bahrain↓ from 19.5% to 11.3%Oman↑ from 10.5% to 13.8%Kuwait↑ from 20.7% to 24.9%
These mixed results underscore the need for multi-faceted health strategies, not just taxation.
Expert Advice: Sugar and Diabetes Risk in the UAE
🗣️ Reshma Devjani – Clinical Dietitian, Fakeeh University Hospital Dubai
Reshma highlighted the direct correlation between sugary drinks and diabetes:
“As per 2024 International Diabetes Federation (IDF) data, the prevalence of diabetes in UAE adults is 20.7%. SSBs increase the risk of Type 2 diabetes by contributing to weight gain and metabolic dysfunction.”
She added that label awareness is key:
“Let the nutrition facts label be your guide. Adults should consume less than 50g of added sugars per day—a single soda can contains almost that much.”
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A Step Toward Smarter Nutrition and Prevention
The UAE government has pledged to launch national awareness campaigns to educate consumers and allow businesses time to adjust their operations and reformulate products. By 2026, shoppers can expect to see:
- Labels highlighting sugar content
- Healthier beverage choices
- Sugar-reduced alternatives at lower prices
Key Takeaways: UAE Sugar Content-Based Taxation
- 📅 Effective From: Early 2026
- 📈 Tax Tied to: Sugar content per 100ml
- 🩺 Goal: Reduce chronic diseases like obesity and Type 2 diabetes
- 🏥 Expert Support: Endocrinologists and dietitians advocate for long-term impact
- 🛒 Impact: Lower sugar = Lower tax = Lower prices
Final Word
The UAE’s sugar content-based beverage tax is more than just a fiscal measure—it’s a comprehensive approach to tackling public health challenges. With support from leading healthcare institutions like Fakeeh University Hospital, and expert voices advocating for consumer education, the country is making commendable strides toward a healthier and more informed society.