Dubai alcohol prices to fall as UAE scraps 30% tax

Dubai ended its steep 30 percent tax on alcohol sales in addition to making the liquor license free. Read to know about the new changes.

Dubai ends alcohol sales tax and gives free liquor license

On Sunday, Dubai ended the 30 percent alcohol sale tax and made its liquor license free for all. The Sheikdom ended its source of income for boosting tourism rates. The sudden announcement on New Year’s from Dubai’s two state-linked retailers came following a decree from the government. However, officials did not acknowledge the ruling Al Maktoum family’s decision.

The new decision follows years of less strict regulations in Dubai. The sheikdom now sells alcohol during the daytime in Ramadan. It also provided home delivery during the COVID-19-induced lockdowns. The sale of alcohol in Dubai has served as a major barometer for the nation. During the 2022 FIFA World Cup, Dubai’s bars were a top destination for fans. A pint of beer can be over $10 at bars. However, other drinks can cost more.

More on the new decision

Currently, under Dubai’s law, non-Muslims over the age of 21 can consume alcohol. They are supposed to carry IDs issued by the Dubai police, permitting them to buy, consume and transport wine, beer and liquor. Not carrying the card can lead to heavy fines and arrests. “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. Reid is with the Maritime and Mercantile International (MMI). MII, an alcohol distributor is a part of the Emirate Group.

“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE,” added Reid. However, MMI did not respond to questions regarding the term of the decision. But, it released an ad urging people to buy from its stores. “You no longer need to drive out to the other emirates,” stated the MMI ad.

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