Dubai Ends 30% Tax On Alcohol, Fee For Liquor Licenses In A Bid To Boost Tourism: Report

For some time now, Dubai has been relaxing regulations in the sheikhdom, including allowing the sale of alcohol during daylight hours in Ramadan and approving home delivery during the pandemic.

Dubai ended its 30% tax on alcohol sales in the sheikhdom on Sunday

Dubai ended its 30% tax on alcohol sales in the sheikhdom on Sunday in an apparent bid to boost tourism. It will also stop charging for liquor licenses- something residents who want to drink at home must have- ending a long-standing source of revenue for its ruling family.

The sudden 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, news agency the Associated Press reported.

For some time now, Dubai has been relaxing regulations in the sheikhdom, including allowing the sale of alcohol during daylight hours in Ramadan and approving home delivery during the pandemic.

Alcohol sales have long served as a major barometer of the economy of Dubai, a top travel destination in the UAE, home to the long-haul carrier Emirates. During the recent World Cup in nearby Qatar, Dubai’s many bars drew commuting soccer fans.

Alcohol distributor Maritime and Mercantile International, which is part of the wider Emirates Group, made the announcement in a statement.

“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. “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 put up by MMI urged customers to buy from its stores, saying “you no longer need to drive out to the other emirates.”

According to AP, Dubai residents long have driven into Umm al-Quwain and other emirates for bulk, tax-free alcohol purchases.

Under Dubai law, non-Muslims must be 21 or older to consume alcohol. Drinkers are supposed to carry plastic cards issued by the Dubai police that permit them to purchase, transport and consume beer, wine and liquor.

Otherwise, they can face fines and arrest — even though the sheikhdom’s vast network of bars, nightclubs and lounges almost never ask to see the permit.

Still, relatively liberal Dubai is an outlier among others in the region. Sharjah, an emirate that borders Dubai to the north, outlaws alcohol, as do the nearby nations of Iran, Kuwait and Saudi Arabia.

(With inputs from AP)