New alcohol rules in Dubai: Scraps 30% tax on alcohol sales, fee for liquor licenses to boost tourism

The Dubai administration made an announcement on New Year's Day to end fees for liquor licenses and removeda 30 per cent tax on alcohol sales to boost tourism. With this, the administration effectively ended a long-standing source of revenue for its ruling family in order to bolster tourism to the emirate.

The New Year's Day announcement, made by Dubai's two state-linked alcohol retailers, came apparently from a government decree from its ruling Al Maktoum family. However, it comes after years of loosening liquor regulations in the sheikhdom, which now sells alcohol during daylight hours during Ramadan and began providing home delivery during the coronavirus pandemic's lockdowns. Alcohol sales have been a major indicator of Dubai's economy for a long time. During the recent World Cup in nearby Qatar, commuting footballfans frequented Dubai's numerous bars.

The announcement was made in a statement by Maritime and Mercantile International, a subsidiary of the Emirates Group." Since we began our operations in Dubai over 100 years ago, the emirate's approach has remained dynamic, sensitive and inclusive for all", said Tyrone Reid of MMI.

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"These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE". An ad was also put up by MMI urging customers to buy from its stores, saying “you no longer need to drive out to the other emirates."

Residents of Dubai have long driven to Umm al-Quwain and other emirates to buy bulk andtax-free alcohol. Non-Muslims must be 21 years of age or older to consume alcohol in Dubai. Drinkers must carry plastic cards issued by Dubai police that allow them to buy, transport, and consume beer, wine, and liquor. In the absence of these, they risk fines and arrest, despite the fact that the sheikhdom's vast network of bars, nightclubs, and lounges almost never ask for a permit.

Nonetheless, relatively liberal Dubai is an outlier in the region. Sharjah, an emirate bordering Dubai to the north, prohibits the consumption of alcoholic beverages, as do neighbouring Iran, Kuwait, and Saudi Arabia.

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