UAE price hikes: 6 things that may cost more for residents in 2025

Now that 2025 is here, it's the perfect opportunity to take a fresh look at your budget. If you are a UAE resident who regularly drives across the Emirates for work or business, be prepared for some costs that may have gone up this year.

The price hikes, implemented this month, are part of broader efforts to enhance public services, including traffic management. For two entities raising their fees, this marks their first rate increase in over a decade.

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A number of residents have already been looking into adjustments they could make to cut costs and offset any additional fees. Here's a recap of recent hike announcements that may have an impact on your budget for 2025:

1. Dubai parking fees

Starting March 2025, motorists will have to pay a Dh6 per hour for 'premium' parking areas in Dubai during peak hours.

Here's an overview of the new rates:

Here's a map where 'premium' areas are marked in pink and 'standard' spots are in green:

The higher Dh6 fee applies to high-demand areas, including parking spots that are within 500m of a Metro station; those with high parking occupancy during peak hours; and markets and commercial activity zone.

A Dh25 hourly fee will also be introduced for paid public parking spaces near event zones. This is expected to be implemented around the Dubai World Trade Centre from February 2025 during major events.

Residents in Sharjah's Al Dhaid City will be shelling out more as the authorities will implement a paid parking system effective January 1. Under the new rule, parking fees will be effective from Saturday to Thursday, between 8am and 10pm.

2. New Salik toll prices

Drivers who pass through Salik toll gates in Dubai may have to shell out extra for their trips, depending on when they take these routes.

Salik will be implementing a 'dynamic pricing' system from January 2025, with a higher fee of Dh6 set during peak hours. Here's a guide to new tolls:

This is the first time Salik charges have been revised since the toll gates were introduced in 2007.

The new fee structure has been designed with an aim of easing traffic flow in the city. It is also expected to bring in additional revenue of Dh60 million to Dh110 million every year for Salik, a public joint stock company.

3. Alcohol sales tax

Dubai reinstated a 30 per cent tax on alcohol effective January 1, 2025.

Retailers have been informed that the 30 per cent municipality tax on alcoholic beverage purchases will be reinstated effective on all orders invoiced from Wednesday, January 1, 2025. Dubai Municipality requests that all necessary systems be in place to ensure full compliance with this fee.

In January 2023, Dubai Municipality announced a plan to remove the 30 per cent tax on alcohol sales in the emirate for a year, which was then extended until the end of December 2024.

4. New sewerage tariffs

Over the next three years, residents and businesses in Dubai will be paying higher sewerage fees, with the first increase kicking in 2025.

The increase will apply to existing accounts, including sewage collection fees within areas overseen by the Dubai Municipality.

Here's the revised tariff structure:

With the fee increase, the Dubai Municipality hopes to promote water conservation in the emirate and build a future-ready infrastructure for the growing needs of the emirate's growing population. This the local civic body's first fee update in 10 years.

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