As 2025 begins, UAE residents are encouraged to reassess their budgets. Several cost increases may affect daily living expenses. These UAE price hikes aim to improve essential public services, such as traffic management and infrastructure development. Here’s a closer look at six areas where costs are rising.
-
Dubai Parking Fees
Starting in March 2025, motorists in Dubai will pay Dh6 per hour for premium parking areas during peak hours. These premium zones include spaces near Metro stations, high-occupancy areas, and commercial activity zones with increased demand.
Additionally, a Dh25 hourly fee will apply to parking near event zones, such as the Dubai World Trade Centre, during major events beginning in February. Meanwhile, Sharjah’s Al Dhaid City introduced a paid parking system on January 1. The new system applies fees from Saturday to Thursday, between 8 am and 10 pm.
-
New Salik Toll Prices
As of January 2025, Salik toll gates in Dubai now operate under a dynamic pricing system. During peak hours, the fee rises to Dh6. This marks the first revision of Salik charges since the toll system launched in 2007. Moreover, the new pricing aims to reduce traffic congestion while generating Dh60 to Dh110 million in annual revenue.
-
Alcohol Sales Tax Reinstated
Dubai reinstated a 30% municipality tax on alcohol starting January 1, 2025. Retailers were instructed to comply with the updated tax system. This change follows a year-long suspension of the tax, which ended in December 2024.
-
Higher Sewerage Tariffs
Dubai residents and businesses will experience higher sewerage fees, beginning with the first phase of increases in 2025. The adjustment will unfold over three years and aims to support water conservation efforts while expanding infrastructure for the emirate’s growing population.
-
Rising Insurance Premiums
Health and motor insurance premiums have increased in Dubai as of January 1, 2025. Insurers adjusted rates to address rising healthcare costs, inflation, and vehicle repair expenses. Despite these increases, providers aim to maintain adequate coverage and quality benefits.
-
New EV Charging Fees
Starting January 2025, UAEV introduced tariffs for electric vehicle charging. DC chargers now cost Dh1.20 per kilowatt-hour, while AC chargers are Dh0.70 per kilowatt-hour, both plus VAT. To simplify the process, UAEV launched a mobile app offering live updates, payment options, and station locators.
These adjustments highlight the UAE’s commitment to improving infrastructure and public services. Residents are encouraged to carefully plan finances and adapt to these changes. Residents are bracing for these UAE price hikes.
