UAE
UAE Expands VAT Refunds for New Home Builders
The Federal Tax Authority (FTA) has launched a new initiative that expands the range of expenses eligible for value-added tax (VAT) refunds for UAE nationals building new homes, in a move aimed at supporting families and reducing construction costs.
The initiative comes in line with the UAE leadership’s directives and coincides with the Year of Family, reinforcing efforts to support home ownership and family wellbeing.
According to the FTA, the expanded list of eligible expenses is expected to generate around AED 200 million in VAT savings for Emirati citizens, with the average refund estimated at about AED 25,000 per claim.
The authority said the total value of approved refund claims is expected to exceed AED 1 billion in 2026, compared to around AED 754 million recorded in 2025.
More construction costs covered
The FTA explained that the initiative is now active and applies to all VAT refund applications submitted on or after January 1, 2026, provided all requirements are met.
Under the updated rules, UAE nationals can now claim VAT refunds on a wider range of construction-related expenses that form part of the residence and are intended for personal or family use.
Newly eligible items include staff accommodation for watchmen, drivers and domestic workers, home gyms, game rooms, integrated smart home systems and security systems, as well as electronic and smart doors for homes and garages.
The expanded list also covers swimming pools, fountains, decorative indoor water features, landscaping works and complete home reconstruction projects, including demolition and rebuilding costs.
The FTA said these features must be part of the residential property, built on the same plot of land and directly connected to the main residence in order to qualify for a refund.
Awareness campaign planned
The authority said it will organise awareness sessions across the UAE to help citizens understand the new initiative and how to benefit from it.
These sessions will be held at local district councils and will also provide an opportunity for residents to share feedback and suggestions on FTA services.
Abdulaziz Al Mulla, Director-General of the FTA, said the initiative reflects the UAE leadership’s commitment to supporting citizens and providing services that improve their quality of life.
He added that the expanded refund programme aims to make the process more transparent and easier for UAE nationals constructing new homes.
The FTA also confirmed that its digital VAT refund platform has been updated to include the newly approved categories, making it easier for applicants to identify eligible expenses and submit their claims.
Officials said the initiative is expected to provide meaningful financial support to families while encouraging home ownership and helping reduce the overall cost of building a new residence.
GN
UAE
Petrol, parking and Salik costs rise in Dubai
UAE motorists are entering June with a clearer picture of what to expect on the roads as new fuel prices, updated parking charges and Salik fees come into effect. While some driving costs are set to rise, Dubai is also advancing its smart mobility agenda with fully cashless parking payments, making it easier for motorists to manage their journeys through digital channels.
With petrol prices rising for a fourth consecutive month and new VAT charges kicking in from June 1, here is a guide to what motorists can expect and how much more they may end up paying.
Fuel prices rise again in June
Petrol prices have increased steadily since March, and June brings another hike.
New fuel prices for June 2026 are:
- • Super 98: Dh3.95 per litre (up from Dh3.66 in May)
- • Special 95: Dh3.83 per litre (up from Dh3.55)
- • E-Plus 91: Dh3.76 per litre (up from Dh3.48)
Diesel prices have offered some relief, easing to Dh4.33 per litre from Dh4.69 the previous month, providing a slight offset amid broader fuel and transport cost changes.
While the increase is smaller than the sharp jump seen during the Iran conflict, motorists will still pay more at the pump. Petrol prices are now almost 50 per cent higher than in February, when Super 98 cost Dh2.45 per litre.
Dubai parking charges to increase
From June 1, Parkin will apply a 5 per cent VAT to all parking services in line with UAE tax regulations.
The tax will apply to:
- On-street parking
- Off-street parking
- Seasonal parking cards
- Parking permits
- Reservations
The underlying parking tariffs remain unchanged, but VAT will be added to the final amount paid by motorists.
How much will parking cost now?
Premium parking during peak hours:
- Current: Dh6 per hour
- New: Dh6.30 per hour
Standard parking:
- Current: Dh4 per hour
- New: Dh4.20 per hour
Lower-tariff zones:
- Dh3 becomes Dh3.15
- Dh2 becomes Dh2.10
Peak parking hours remain:
- 6am to 10am
- 4pm to 8pm
What remains free?
Motorists will still enjoy free parking between 1am and 6am.
In most public parking zones, Sundays and public holidays remain free unless otherwise indicated.
Salik toll fees also rise
VAT will now apply to all Salik toll crossings and tag activation charges.
New Salik charges:
Peak hours:
- Current: Dh6
- New: Dh6.30
Off-peak hours:
- Current: Dh4
- New: Dh4.20
Sunday crossings:
- Current: Dh4
- New: Dh4.20
Late-night crossings between 1am and 6am remain free.
Salik tag activation becomes more expensive
The Salik tag activation fee rises from Dh50 to Dh52.50 after VAT.
Drivers purchasing new tags should expect a slightly higher overall cost, depending on how VAT is applied to eligible service charges.
Dubai goes cashless for parking payments
Another major change arrives on June 1 as Dubai phases out cash payments at parking meters.
Motorists will no longer be able to pay using coins or paper notes at physical parking machines.
Parking can instead be paid through:
nol cards- Parkin app
- SMS parking service
- Dubai Now app
- RTA app
What changes for motorists
From June 1, UAE motorists will pay more for fuel, parking and tolls, while cash parking payments become a thing of the past in Dubai.
For occasional drivers, the increases may only add a few dirhams each month. However, daily commuters who regularly use Salik gates, premium parking zones and petrol-powered vehicles are likely to feel the impact more significantly as transport costs continue to climb.
GN
UAE
UAE foils terror plot, arrests cell members
UAE State Security authorities announced they have dismantled a terrorist cell and arrested its members over alleged involvement in covert activities aimed at undermining national unity and destabilising the country.
According to the statement carried by Emirates News Agency (WAM), investigations revealed that the group had planned to carry out organised terrorist and sabotage operations on state territory. Authorities said the network was linked to Iran’s “Wilayat Al Faqih”.
Investigations also found that members of the group had adopted extremist ideologies that pose a threat to internal security. They were said to have conducted recruitment and mobilisation activities through secret meetings, as part of a coordinated plan with external entities to gain access to sensitive sites.
Further monitoring and inquiries indicated that members held clandestine meetings both inside and outside the country with suspected terrorist elements and organisations, seeking to spread misleading ideas among Emirati youth and recruit them in support of external loyalties.
The activities also included attempts to incite against the state’s foreign policy and internal measures, as well as efforts to portray the country negatively.
Authorities added that the group had collected funds through unofficial means and transferred them to suspicious entities abroad.
The charges brought against those arrested include establishing and operating a secret organisation within the country, pledging allegiance to external entities, and harming national unity and social stability.
State Security reaffirmed its commitment to confronting any threats to public safety, urging citizens and residents to report suspicious activities through official channels to support security and stability.
WAM
Business
How is food reaching you despite regional tensions?
Keeping supermarket shelves stocked has become a logistics exercise playing out across ports, highways and international corridors, with operators reworking supply chains to ensure food and essential goods continue to reach the UAE without disruption.
At the centre of that effort is DP World, which has been prioritising critical cargo from the outset, working closely with government entities, traders and manufacturers to keep imports moving even as traditional shipping patterns face pressure.
In an exclusive interview with Gulf News, Ahmad Yousef Al Hassan, CEO and Managing Director of DP World GCC, said the approach has been structured around a clear hierarchy of needs, starting with food, pharma and agricultural inputs before moving to industrial supply chains that keep local production running.
“We work very closely with the government, especially a lot of the ministries, on the essential goods for the UAE. They fall into food and beverages, along with categories like milk, rice, animal feed and pharma,” he said.
Jebel Ali alone handled about 750,000 TEUs of essential goods last year, with roughly two-thirds tied to food and beverage shipments, providing a baseline for how much cargo needs to be protected during periods of disruption.
Mapping supply, not stockpiling
Instead of stockpiling, the focus has been on mapping demand and ensuring continuity of supply. Traders and manufacturers are being asked to identify their most critical imports, allowing DP World to prioritise cargo and route it through the fastest available channels.
“There’s enough essential goods, there’s no panic,” Al Hassan said, adding that the emphasis remains on keeping trade moving rather than building excess inventory.
That approach extends to sourcing as well. Where traditional suppliers face delays, alternative markets in India and Pakistan are being lined up, with feeder vessels used to move goods quickly into UAE ports. Other feeder operators have also been encouraged to follow the same prioritisation model to ease congestion and speed up turnaround times.
Cold chain gets added support
The fresh food supply has required additional intervention, particularly along longer inland routes. DP World has expanded refrigerated container capacity and introduced stopover solutions to maintain temperature control.
For instance, a dedicated inland facility has been introduced that allows refrigerated containers to plug in and stabilise before continuing their journey, reducing the risk of spoilage during extended transit.
“We have this reefer pit stop that will help out as well,” Al Hassan said, pointing to a broader push to reassure traders that temperature-sensitive cargo can be handled reliably.
Additional generator units have also been deployed to power refrigerated containers on trucks, giving logistics teams more flexibility across different corridors.
Global network steps in
The company’s international footprint is playing a central role in rerouting cargo flows. Ports in India and Pakistan are being used as staging points for transshipment, helping to keep eastern Gulf ports from becoming congested. For F&B alone, India and Pakistan together account for nearly 30% of the imports through Jebel Ali.
DP World is also using its integrated shipping and logistics solutions to design alternative routes and keep critical cargo moving efficiently across markets.
“This global network is what really pushes people to call us right away,” Al Hassan said, describing how customers are seeking real-time solutions to move construction materials, raw materials and food-related agricultural products.
Corridors expand across the region
Closer to home, multiple corridors are being activated to keep trade flowing. Routes through Fujairah and Khorfakkan are already operational, while discussions continue with Sohar Port in Oman to expand capacity and streamline processes.
Further north, DP World’s terminal in Jeddah is being used to absorb additional cargo, supported by ongoing talks between UAE and Saudi authorities to establish a bonded corridor that would allow smoother movement of goods between the two markets.
Each additional route adds flexibility for traders, reducing reliance on any single port or shipping lane.
Managing congestion to control costs
Even with supply holding steady, shipping and logistics costs have come under broader market pressure as diesel prices, insurance premiums, freight rates and other cost drivers evolve.
Al Hassan said that DP World’s focus is on keeping trade flowing efficiently and reducing congestion.
Faster clearance, better routing and coordinated planning help to ease pressures across the wider supply chain and limit the knock-on effect on end consumers.
Authorities are also closely monitoring prices, drawing on mechanisms developed during previous disruptions to maintain oversight across key categories.
Keeping the system balanced
The challenge is not only about moving food. Industrial supply chains must also remain active, from raw materials for manufacturing to equipment needed for ongoing projects.
Balancing these competing demands has required constant coordination among regulators, port operators, and private-sector players, ensuring that essential goods move first while maintaining sufficient capacity for broader trade.
The system has held so far, supported by a combination of planning, infrastructure and rapid decision-making.
That, according to Al Hassan, is what keeps shelves stocked without tipping into panic or shortage, even in a strained operating environment.
GN
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