As 2025 approaches, it's wise to revisit your budget for the upcoming year. If you reside in Dubai or frequently drive to the emirate for work or business, be prepared for some increased costs. These price hikes are part of initiatives to enhance public services, particularly traffic management. For two entities raising fees, this marks the first increase in at least a decade. Many residents are already exploring cost-saving measures to offset these additional charges.
Here’s a summary of recent announcements that could impact your 2025 budget:
1. Dubai parking fees: Beginning March 2025, drivers will pay Dh6 per hour for 'premium' parking areas during peak times. High-demand areas include spots within 500m of a Metro station, those with high occupancy during peak hours, and zones near markets and commercial activity. A Dh25 hourly fee will also be introduced for paid public parking near event zones, starting around the Dubai World Trade Centre from February 2025 during major events.
2. New Salik toll prices: From January 2025, Salik will implement a 'dynamic pricing' system with a Dh6 fee during peak hours. This is the first revision since Salik toll gates were introduced in 2007. The new structure aims to ease traffic flow and is expected to generate an additional Dh60 million to Dh110 million annually for Salik, a public joint stock company.
3. New sewerage tariffs: Over the next three years, Dubai residents and businesses will face higher sewerage fees, with the first increase taking effect in 2025. This applies to existing accounts, including sewage collection fees managed by Dubai Municipality. The fee hike aims to promote water conservation and build future-ready infrastructure to meet the growing population's needs. This is the local civic body's first fee update in 10 years.
Regarding rent and salaries: Amid rising costs, rent has been a major concern. However, there may be some relief as over 100,000 new apartments and villas are expected to enter the market in 2025, potentially easing current rent pressures. Employees in the UAE may see a 'decent' salary increase, particularly in technology and legal sectors due to high demand for talent. Overall, salaries across industries may rise by four percent in 2025, according to a Mercer survey covering over 700 companies.
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