The UAE and wider Gulf saw a week of major policy shifts, market milestones and regulatory updates shaping 2026 and beyond.
Dubai’s record-breaking real estate performance, new UAE tax and VAT rules, and the first public holiday of 2026 dominated national headlines. Across the region, Oman accelerated long-term residency investment, Qatar expanded visa access for GCC residents, and Saudi Arabia approved a SR1.31tn budget.
Catch up with 10 of the biggest stories this week, as selected by Arabian Business editors.
First UAE holiday of 2026 dates revealed
Following the final public holiday of the year, workers don’t have long to wait until the first break of next year – with the next break just weeks away.
New Year’s Day is an official holiday in the UAE, meaning there is less than a month to wait before the next break for the public and private sector.
UAE issues major tax rule change from January 1, 2026
The Ministry of Finance confirmed that the new law will take effect on January 1, 2026. The amendments improve efficiency, enhance clarity for taxpayers, and strengthen transparency, fairness and financial discipline across the UAE’s tax system.
A central component of the amendments is a defined period—not exceeding five years from the end of the relevant tax period—for taxpayers to request a refund of a credit balance from the Federal Tax Authority (FTA) or apply that balance toward outstanding tax liabilities.
UAE announces new VAT rules effective January 1, 2026
The revised rules—effective January 1, 2026—aim to improve administrative efficiency and keep the tax system aligned with international standards. The Ministry of Finance has announced the issuance of Federal Decree-Law No. (16) of 2025, amending certain provisions of Federal Decree-Law No. (8) of 2017 on Value Added Tax. The amended law will take effect from January 1, 2026.
According to the Ministry, the changes form part of the UAE’s ongoing efforts to develop its tax system and enhance regulatory and administrative efficiency. The amendments aim to simplify tax procedures for taxpayers while ensuring transparency and compliance with international standards.
UAE petrol prices increase in December 2025
The UAE has announced cuts to petrol and diesel prices for December 2025.
Petrol prices increased for all categories, following significant deductions in the previous month.
It is now slightly more expensive to fill up a tank than year ago, with E-Plus 91, 95 and 98 becoming less affordable than they were 12 months ago. Diesel remains slightly cheaper than this time last year.
Abu Dhabi overhauls engineering standards with new four-tier professional grading system
The changes were announced by the Department of Municipalities and Transport (DMT) as part of administrative decision 113/2025.
The revised framework replaces the previous three-grade structure with four distinct categories:
- Intern Engineer
- Practitioner Engineer
- Professional Engineer
- Expert Engineer
Dubai real estate sets new annual record as 2025 sales hit AED624.1bn
The firm’s latest market report shows that last month generated 19,019 transactions, a 30.9 per cent year-on-year rise, taking total deals for the year to 197,263. This surpasses the previous annual high of 180,900 set in 2024, with one month still to go.
Sales value has also continued to climb. After 2024’s record AED522.1bn was overtaken in October, a further AED64.7bn worth of transactions in November lifted the 2025 total to AED624.1bn, up 49.6 per cent year on year.
Oman’s new 10-year residency scheme draws growing investor interest
Positioned under Oman Vision 2040, the initiative is designed to offer long-term stability, transparent regulation and a secure base for investment in one of the region’s more politically neutral and economically steady markets.
The residency scheme grants long-term status to eligible applicants in return for a minimum investment of US$520,000. Investors can qualify through seven routes, including purchasing completed real estate in Integrated Tourism Complexes, establishing a registered company in Oman, buying government development bonds, investing in listed securities on the Muscat Stock Exchange or placing a five-year fixed-term deposit in a licensed Omani bank.
Saudi Arabia approves 2026 budget: $349.2bn spending, $305.9bn revenue
The decision was made during a Cabinet session chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs, held in Dammam on 2 December 2025. The Cabinet reviewed the full items of the general budget before issuing its decision.
- The approved state general expenditures amount to SR1,312,800,000,000 ($349.2bn)
- The state’s general revenues are estimated at SR1,147,400,000,000 ($305.9bn)
- The deficit is estimated at SR165,400,000,000 ($44bn)
Qatar unveils major Hayya visa update for GCC residents with longer stays
The enhancements, announced by Qatar Tourism in collaboration with the Ministry of Interior and the Permanent Committee for Managing Visitor Entry, are designed to create a smoother and more convenient arrival experience. Under the new rules taking effect on November 30, 2025, GCC residents will be able to stay in Qatar for up to two months and enjoy multiple-entry access.
The changes are intended to make it easier for visitors to attend a full season of events and move in and out of the country through all points of arrival.
Dubai real estate sales pass $17.5bn in November – best-performing areas and projects revealed
The latest data from the Dubai Land Department (DLD) reflects strengthened investor confidence, sustained demand and continued momentum heading into 2026.
A total of 19,016 transactions were recorded in November, with a combined value of AED 64.7bn ($17.63bn) — marking a 30.9 per cent increase in volume and a 49.5 per cent rise in value compared with November 2024. The average price per square foot reached AED 1,755 ($479).
