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UAE Holidays Impact Fuel Costs Amid Saudi Economic Changes

This week in the UAE, significant developments have emerged regarding holiday announcements, petrol price adjustments, tax updates, property reforms in Saudi Arabia, and new laws in Kuwait. As residents and investors keep a close eye on these changes, it’s essential to stay informed about the evolving landscape of the Gulf region. Here are ten key updates you might have missed, encompassing everything from a new long weekend to transformative reforms in the real estate sector.

UAE Announces Private Sector Holiday for September

The UAE has declared a holiday for the private sector in celebration of Prophet Muhammed’s (PBUH) birthday. According to the UAE Ministry of Human Resources and Emiratisation (MoHRE), private sector employees will enjoy a paid day off on Friday, September 5, 2025. This holiday announcement aligns with a similar declaration for the public sector made by the Federal Authority for Government Human Resources (FAHR) earlier this week, marking a noteworthy occasion for both sectors.

Petrol Prices Adjusted for September 2025

As petrol prices are announced for September 2025, residents can expect minor fluctuations. Recent reports indicate that prices dropped slightly last month, providing consumers with some relief compared to last year. This adjustment is part of ongoing monitoring by authorities to ensure that fuel remains accessible and affordable, particularly as the market experiences various price changes throughout the year.

Dubai Takes Action on Construction Costs for Villas

Dubai Municipality has issued warnings to several engineering consultancy firms for violating the Dubai Building Code. These warnings were prompted after investigators discovered exaggerated designs being proposed for citizens’ villas, leading to unjustified increases in construction costs. This initiative showcases Dubai’s commitment to providing cost-effective and compliant construction solutions, reinforcing the importance of adhering to regulatory standards.

Significant Tax Update for UAE Businesses

The UAE Ministry of Finance has announced a vital update regarding its Domestic Minimum Top-up Tax (DMTT), recently recognized by the Organisation for Economic Co-operation and Development (OECD). This high-status approval signifies the UAE’s ambition to be a premier international business hub, bolstering its sustainable development strategy. The DMTT allows multinational enterprises (MNEs) to avoid foreign tax complications, promoting a favorable investment environment.

Dubai’s Branded Residences Set to Surge

The emirate of Dubai is rapidly establishing itself as a global leader in the branded residence segment, with plans for over 140 new projects by 2031. This sector has witnessed a remarkable 160% increase globally over the past decade, attracting affluent buyers seeking luxury and integrated living experiences. A report from PRIME by Betterhomes estimates that the MENA region will account for roughly 25% of the 1,400 branded residence developments expected worldwide by 2030, placing Dubai at the forefront of this movement.

Fern Hospitality Ventures Invests in High-End Dining

Fern Hospitality Ventures has launched a $100 million fund to elevate dining and leisure brands on an international platform. Initial fundraising exceeded $15 million in just the first 24 hours, showcasing robust investor confidence. Co-led by hospitality entrepreneur Uday Singh and emerging investor Akshat Tibrewala, the fund aims for returns between 20% and 30% annually, expecting to capitalize on the expanding high-end restaurant market influenced by global wealth migration.

Saudi Arabia’s Real Estate Market Set for Transformation

Saudi Arabia is taking significant steps to enhance its residential real estate market through a new foreign ownership law slated for 2026. The latest report from JLL KSA indicates that urban centers within the Kingdom are experiencing substantial rental increases and activity reflective of ongoing housing sector maturation. Initiatives stemming from Vision 2030, population growth, and government-supported ownership programs are all driving forces behind this transformation.

Kuwait’s Vision 2035 Enhances National Workforce Participation

Kuwait is intensifying efforts to promote the integration of its citizens into the private sector as part of its Vision 2035 development plan. This initiative, termed “Kuwaitisation,” aims to diversify the economy, reduce dependency on public sector jobs, and enhance quality employment opportunities for young Kuwaitis. Mohammad Al Muzaini, Director of Public Relations and Media at the Public Authority for Manpower, noted the implementation of new legislative measures to facilitate increased employment of Kuwaiti nationals along with specialized training programs to mentor them in private sector roles.

Dubai Expands Educational Facilities for 2025–26

The Dubai private education sector is poised for expansion, with plans to open 16 early childhood centers, six new schools, and three international universities in the 2025–26 academic year. This expansion will add over 11,700 student seats across the region, enhancing educational opportunities for families and solidifying Dubai’s reputation as a global leader in quality education.

Among the new institutions, several will follow the UK curriculum, including:

  • GEMS School of Research and Innovation in Sports City
  • Victory Heights Primary School in City of Arabia
  • Dubai British School Mira
  • Dubai English Speaking School in Academic City
  • Al Fanar School in Nad Al Sheba

Improvements to Traffic Flow at Dubai International Airport

The Roads and Transport Authority (RTA) of Dubai has commenced a project to expand and upgrade the bridge leading to Terminal 1 at Dubai International Airport (DXB). This expansion project, designed to accommodate an additional lane, aims to enhance accessibility and reduce congestion, addressing the significant increase in passenger numbers, which surpassed 92 million in 2024. Director General Mattar Al Tayer emphasized the innovative approach being taken with the new bridge design to optimize the flow of traffic and improve passenger experiences.

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