Dubai has eliminated its 30 percent alcohol tax in an apparent effort to increase tourism.
It will also eliminate fees for personal alcohol licenses. Which are required for residents who wish to consume alcohol at home.
Dubai has been loosening its regulations for some time, allowing alcohol to be sold during daylight hours during Ramadan. And permitting home delivery during the epidemic.
This recent action is believed to be an effort to make the city more appealing to foreigners. In response to competition from nearby cities.
The two distributors of alcoholic beverages in Dubai, Maritime and Mercantile International (MMI). And African & Eastern have stated that they will pass on the tax reduction to consumers.
MMI spokesperson Tyrone Reid
MMI spokesperson Tyrone Reid told AP that the emirate’s strategy has been creative, sensitive. And inclusive from the company’s establishment in Dubai over a century ago.
“These recently revised restrictions are essential for continuing to ensure the safe and responsible purchase. And use of alcoholic beverages in Dubai and the United Arab Emirates.”
The move, which took effect on Sunday, may or may not be permanent. The Financial Times referred to the decision as a one-year experiment, citing “industry executives informed of the decision.”
In Dubai, the “party capital” of the Gulf, expatriates outnumber nationals nine to one. And locals frequently travel to Umm al-Quwain and other emirates to purchase alcohol in quantity.
Due in part to its tolerance of a more liberal lifestyle. Dubai has always been able to attract more tourists and rich foreign workers than its neighbors.
Now, though, it confronts rising competition from rivals who are expanding their hospitality and finance industries.
To drink, transport, or keep alcohol at home, non-Muslim citizens of Dubai must be at least 21 years old. And possess an alcohol license, a plastic card issued by the police.
