logo
UAE sugar tax changes are a smart policy tool in the war on obesity and diseases

UAE sugar tax changes are a smart policy tool in the war on obesity and diseases

The National21-07-2025
Sugar has been a part of Middle Eastern cuisine for more than a thousand years, first entering the region from the Indian subcontinent. When it eventually reached Europe, sometime in the Middle Ages, it transformed palettes. 'No food refuses sugar,' as one medieval Italian cookbook notes.
But modern science tells us refusal – or, at least, regular abstinence – is a wise choice. In his 2016 book The Case Against Sugar, science reporter Gary Taubes compares sugar to tobacco – addictive, too easily available and detrimental to our health. Public health experts agree, and yet globally the consumption of sugary drinks, in particular, has risen in recent decades.
It is little surprise, then, that so many governments have come to see sugar as a public health threat. Today, more than 100 countries levy taxes on sugar to discourage overconsumption. The UAE is one of them, having introduced a flat tax on sugar-filled soft drinks in 2017. This month, authorities announced a new, more dynamic taxation model, in which the tax level per litre on sugary beverages will be determined by the sugar level per 100ml.
Under the previous flat-tax regime, all companies producing sugary beverages would pay the same amount of tax. The new model is expected to discourage companies from increasing sugar levels by making it more expensive to do so on a directly proportional basis. This system will come into effect at the beginning of next year.
'This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices,' the UAE Ministry of Finance said on Friday.
The dangerous consequences of excessive processed sugar by now are well-documented. They include obesity, hypertension and cardiometabolic diseases like type 2 diabetes. In the Middle East, in particular, obesity and diabetes related to diet have been a scourge on public health systems. One study by researchers at Tufts University in the US found that sugary beverages directly contributed to around 15 per cent of diabetes cases in the region.
The consumption of sugary drinks has risen in recent decades
The peril is worsened by the fact that a love of sugar appears to be ingrained in most people. The dopamine release from sugar intake is neurochemically comparable to the effect of opiates. Tobacco companies, masters of addiction science, understand its power; sugar has been a common additive to cigarettes for decades.
In light of this, smart regulation is not only warranted, but crucial. Sugar consumption is an area where taxation has been shown to make a difference in spending habits. One 2019 study of American soft beverage consumers conducted by the University of California, Berkeley, found this to be the case. And policymakers have seen this pattern bear out in parts of the Gulf, too. In Bahrain, the introduction of a sugar tax in 2017 is thought to have contributed to an 8 per cent drop in diabetes between 2011 and 2021.
Of course, taxation is not a silver bullet in the war on sugar. It is just one part of a comprehensive public health policy toolkit. Public awareness is critical to changing not only consumer behaviour, but manufacturers' corporate strategies. Since the health consequences of sugar became clear, beverage behemoths have introduced sugar-free options which have soared in popularity.
It is likely to take years or even decades to kick society's sugar habit. The global war on smoking has shown that such policy battles are often long and arduous. But it is worth it for governments to remain persistent. Few rewards are sweeter, for the individual and society as a whole, than good health.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

UAE and Jordan conduct new air drops to Gaza as Emirati aid convoy arrives
UAE and Jordan conduct new air drops to Gaza as Emirati aid convoy arrives

The National

time4 hours ago

  • The National

UAE and Jordan conduct new air drops to Gaza as Emirati aid convoy arrives

The UAE and Jordan air dropped critical aid into the Gaza Strip for a fourth day on Wednesday as an Emirati convoy of 58 lorries brought more humanitarian supplies into the enclave. Jordan's Petra news agency said the airdrops were carried out by two C-130 Royal Jordanian Air Force planes and an Emirati counterpart. It added that 16 tonnes of food and baby formula were delivered to various areas of Gaza Strip, bringing the total cargo dropped over the past few days to about 73 tonnes of essential supplies. The fleet of lorries arrived in Gaza through border crossings to support broader relief operations in support of Palestinians, state news agency Wam reported. Meanwhile, Belgium will take part in a multicountry operation in co-ordination with Jordan to air drop aid to Gaza, Brussels has announced, as UN agencies warn the Palestinian territory is slipping into famine. A Belgian aircraft carrying medical supplies and food worth €600,000 ($690,000) will "soon" fly to Jordan and remain on stand-by to conduct air drops, said the defence and foreign ministries in Brussels. Gaza's hospitals have recorded seven new deaths from malnutrition and starvation in the past 24 hours, the Health Ministry said. This takes the death toll from starvation during the conflict to 154 – including 89 children – the ministry said. At least 60,138 Palestinians have been killed and 146,269 wounded since the Gaza war began, the ministry said.

Saudi foodtech startup secures $39mln funding round for global expansion plans
Saudi foodtech startup secures $39mln funding round for global expansion plans

Zawya

time7 hours ago

  • Zawya

Saudi foodtech startup secures $39mln funding round for global expansion plans

Riyadh - Calo, the Middle East's largest foodtech startup, has raised $39 million (SAR 146.27 million) in a series B extension round, bringing the total funding to $64 million (SAR 240 million). Led by AlJazira Capital, Oraseya Capital, Nuwa Capital, STV, Khwarizmi Ventures, and Al Faisaliah Group, the transaction follows an initial $25 million tranche secured in December 2024, according to a press release. The oversubscribed round supports Calo's global expansion plans, integration of recent UK acquisitions, and continued investment in AI-powered personalized nutrition. The CEO and Co-Founder of Calo, Ahmed Al Rawi, commented: 'We're living in an interesting time where AI is transforming our lives, and we're excited to be investing in cutting-edge innovation to explore how Calo can use AI to influence the future of how we discover and eat healthy food.' He added: 'Being vertically integrated with the mission of 'Making Healthy Easy' gives us an edge to develop and scale world-class experiences not just regionally, but also globally.' Calo recently acquired UK-based meal subscription brands Fresh Fitness Food and Detox Kitchen, integrating them into its operations and marking the company's entry into the European market. The company, which now operates more than 10 physical locations across the GCC, grew over 50% year-on-year (YoY) in the first half (H1) of 2025. Calo is piloting Calo Black, an AI-powered private chef experience that uses large language models (LLMs) to understand individual customer preferences through natural conversation and craft personalized daily menus. It is worth noting that Calo partnered with premium gym operator Armah Sports Company to expand wellness and retail offerings through co-located outlets, cross-promotions, and product distribution across gym networks. Riyadh-headquartered Calo operates in Saudi Arabia, the UAE, Bahrain, Qatar, and Kuwait, with expansion now underway in the UK.

Gulf Capital Successfully Exits ART Fertility Clinics' Middle East Operations Selling Its Stake to IVI-RMA Global, World Leader in Fertility and Assisted Reproduction.
Gulf Capital Successfully Exits ART Fertility Clinics' Middle East Operations Selling Its Stake to IVI-RMA Global, World Leader in Fertility and Assisted Reproduction.

Web Release

time7 hours ago

  • Web Release

Gulf Capital Successfully Exits ART Fertility Clinics' Middle East Operations Selling Its Stake to IVI-RMA Global, World Leader in Fertility and Assisted Reproduction.

Gulf Capital, one of the largest private equity firms investing from the GCC to the rest of Asia, announced today that it has sold its majority stake in ART Fertility Clinics' Middle East operations to IVI-RMA Global, the world's largest assisted reproduction group. The transaction is expected to generate a significant return on invested capital, making it one of Gulf Capital's most successful exits to date. Since its acquisition in 2020, ART Fertility Clinics has undergone a period of significant growth and transformation. Under Gulf Capital's ownership, ART expanded from a UAE-focused business into a regional fertility platform with 15 clinics, including 3 in the UAE, 1 in Saudi, and 11 in India. The scope of the transaction includes the clinics located in UAE and Saudi Arabia, while the India operation will remain under the ownership of Gulf Capital. In the Middle East alone, ART Fertility Clinics has delivered substantial revenue and EBITDA growth since 2020, with profitability quadrupling over the last five years. This strong financial performance has been underpinned by ART's reputation for clinical excellence, rapid regional expansion and some of the highest success rates in IVF treatments across the region. Dr. Karim El Solh, Co-Founder and CEO of Gulf Capital, commented: 'We are proud of the transformation we achieved at ART Fertility, scaling the platform from a single-country operator to the regional leader in reproductive medicine. Under Gulf Capital's ownership, ART Fertility invested heavily in science and research with 220 medical publications to date and launched a pioneering genetic testing lab in Abu Dhabi, leading to some of the highest IVF fertility success rates globally. ART Fertility's expansion and financial performance underline Gulf Capital's deep focus on operational improvements and growth. Following a competitive auction, the successful sale of the company to a global strategic buyer highlights Gulf Capital's ability to source, grow and exit healthcare platforms at very attractive multiples.' Suresh Soni, CEO of ART Fertility Clinics, said: 'ART Fertility has built a strong reputation for clinical excellence and world-class patient outcomes. Our success has been driven by our scientific rigor, a world-renowned medical team led by Prof. Dr Human Fatemi, and a deep commitment to providing the best-in-class care. With the support of Gulf Capital, we were able to expand successfully across the region and enhance our service offerings including adding in house genetic capabilities. We are excited to join IVI-RMA's global platform and to continue delivering on our mission and commitment towards the GCC community.' Hazem Abu Khalaf, Managing Director and Head of Healthcare investments at Gulf Capital, added: 'Our investment in ART Fertility is a clear example of Gulf Capital's ability to drive operational improvement and strategic growth in high-impact sectors. As one of the most vital and fast-evolving industries in the GCC, healthcare continues to offer both meaningful impact and long-term growth opportunities. ART Fertility stands as a testament to that potential. Over the past few years, we have helped build a business that combines scale, profitability, and clinical leadership – three elements that are often difficult to align. We are confident that ART Fertility is well-positioned for continued success in its next phase of growth under IVI-RMA's ownership and proud to have laid the foundation for its continued success in advancing specialized healthcare in the region' Gulf Capital and ART Fertility Clinics were advised by Moelis & Company as M&A advisor, and A&O Shearman as legal advisor on the transaction.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store