2026 is bringing some of the biggest upgrades across the UAE to date

From game-changing public transport to new sustainability rules and updated taxes, the next year is shaping up to be one of the most transformative yet. Here’s a look at the key changes set to reshape daily life across the UAE.

Etihad Rail is on track to arrive

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The long-awaited Etihad Rail passenger service is edging ever closer. The Etihad railway already stretches across the country and currently serves freight, but its switch to public transport will connect all seven emirates, offering an efficient alternative to driving. It will roll out in 2026 and begin operating from Abu Dhabi to Dubai.

By 2030 the rail will see transport across all Emirates. Journeys such as Abu Dhabi to Dubai will take around 50 minutes, Abu Dhabi to Fujairah roughly 100 minutes, and Dubai to Fujairah approximately 50 minutes. Even the route from Abu Dhabi to Ruwais is expected to come in at just over an hour. For commuters, weekend travellers, and anyone tired of Sheikh Zayed Road traffic, this is set to be a huge win.

Flying taxis will take off

Joby Aircraft flying taxis in Dubai

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Yes, really. The futuristic flying-taxi era is officially arriving. The RTA has confirmed that fully electric air taxis will take to the skies in the first quarter of 2026. The initial vertiports will be located at Dubai International Airport, Palm Jumeirah, Downtown, and Dubai Marina. Each aircraft will carry a pilot plus four passengers, reaching speeds up to 320km/h. That means the journey between DXB and Palm Jumeirah could shrink from a 45-minute drive to as little as 10 to 12 minutes.

New single-use plastic rules

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Dubai’s sweeping ban on single-use plastics reaches its final stage on January 1, 2026. From this date, the emirate will no longer allow plastic plates, tableware, food containers, or beverage cups with plastic lids. The move follows a phased rollout announced at the end of 2023, aimed at reducing waste and promoting more sustainable daily habits. Expect takeaways and cafés to rely heavily on eco-friendly alternatives.

Sugar tax updated

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A major shake-up to the soft-drink tax system also arrives on New Year’s Day. Beverages will now be taxed based on sugar content, with the new tiered system also applying to artificially sweetened drinks. As a result, prices will vary depending on how much sugar or sweetener each drink contains.

Bank OTPs on the way out

piggybank

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Online banking is set for a security upgrade. From July 25 this year, banks began replacing SMS and email OTPs with app-based verification. By March 2026, the traditional OTP system will be phased out completely. Customers are urged to update their apps to prepare for the shift, as the Central Bank aims to make digital banking safer and more reliable.

GCC Unified Visa coming soon

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Travelling around the Gulf is about to get much simpler. The new GCC Unified Visa which is similar to the Schengen system will begin its pilot phase, with the UAE and Bahrain trialling the scheme first. If successful, it will expand to all six GCC nations. An integrated digital platform will allow countries to share border and travel-related data, helping streamline the process and enhance safety.