São Paulo – The emirate of Dubai ended its 30% tax on alcohol sales in the and made its required liquor licenses free to obtain in a bid to further boost tourism to the emirate. The New Year’s Day announcement was made by Dubai’s two state-linked alcohol retailers.
This follows years of loosening regulations over liquor, which now sells alcohol during daylight hours in Ramadan and began providing home delivery during the lockdowns at the start of the coronavirus pandemic.
Alcohol sales have long served as a major barometer of the economy of Dubai, a top travel destination in the United Arab Emirates. During the World Cup in Qatar, Dubai’s many bars drew soccer fans.
However, a pint of beer easily can cost over USD 10 at a bar, with other drinks running even higher.
It wasn’t immediately clear if this would cause a price drop at alcohol-serving establishments or if it only would affect those buying it from retailers.
Alcohol distributor Maritime and Mercantile International (MMI), which is part of the wider Emirates Group, made the announcement in a statement. “These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE,” said Tyrone Reid of MMI. The distributor began its operations in Dubai over 100 years ago.
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.” Dubai residents long have driven into Umm Al-Quwain and other emirates for bulk, tax-free alcohol purchases.
African & Eastern, the second alcohol retailer believed to be at least partially held by the state or affiliated firms, also announced the end of the municipality tax and license fees.
Translated by Guilherme Miranda
