As the UAE enters 2025, residents are bracing for changes in their budgets due to rising costs in various sectors. These increases aim to enhance public services and infrastructure, some of which have seen their first adjustments in over a decade. Here’s an overview of what’s becoming more expensive this year.
1. Parking Fees in Dubai to Rise
Dubai motorists will face increased parking costs starting March 2025. Premium parking spaces near metro stations and busy commercial areas will now cost Dh6 per hour during peak hours (8 am–10 am and 4 pm–8 pm). Outside these times, the fee will drop to Dh4 per hour.
For event zones, such as those around the Dubai World Trade Centre, parking fees will spike to Dh25 per hour during major events. Meanwhile, Sharjah’s Al Dhaid City has introduced a paid parking system effective January 1, with fees applicable from Saturday to Thursday, 8 am–10 pm.
2. Dynamic Salik Toll Pricing
From January, Dubai’s Salik toll gates have adopted a dynamic pricing system. During peak hours, motorists will pay Dh6 per crossing, while off-peak hours will cost Dh4. This change aims to ease traffic congestion and marks the first adjustment since Salik was introduced in 2007.
3. Alcohol Tax Returns
The 30% municipality tax on alcohol sales in Dubai, which had been waived for two years, has been reinstated starting January 1, 2025. Residents purchasing alcohol will need to adjust their budgets accordingly.
4. Sewerage Tariffs to Gradually Increase
Dubai Municipality is implementing a phased increase in sewerage fees over the next three years. In 2025, the tariff will rise to 1.5 fils per gallon, with further increases planned for 2026 and 2027. This fee adjustment supports the emirate’s growing infrastructure needs while promoting water conservation.
5. Higher Insurance Premiums
Residents can expect a rise in health and motor insurance premiums in 2025. Insurers are adjusting rates to match rising healthcare costs and vehicle repair expenses. Health insurance premiums are expected to see a sharper increase compared to motor insurance policies.
6. EV Charging Fees Introduced
Starting this year, UAE’s government-owned EV charging network, UAEV, will implement new tariffs. EV users will pay Dh1.20 per kilowatt-hour for DC chargers and Dh0.70 per kilowatt-hour for AC chargers. This marks the end of free EV charging services, which had been in place until now.
7. What About Rent and Salaries?
While rental rates in some areas may stabilize or even drop as over 100,000 new apartments and villas enter the market, this may not be uniform across all locations. On the brighter side, employees in sectors like technology, legal, finance, and HR may see salary increases in 2025, with overall pay hikes averaging 4% across industries.
Dubai price hikes – Government Efforts to Stabilize Essentials
To curb the impact of rising prices, the UAE government has introduced measures to regulate costs for nine essential commodities, including rice, bread, and eggs. Retailers cannot increase prices for these items without prior approval, ensuring affordability for residents.
With several Dubai price hikes taking effect in 2025, planning is essential for residents to manage their finances. Adjusting budgets and staying informed about changes will help navigate these challenges effectively.
Stay tuned to Social Kandura for the latest updates.
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