Dubai: Dubai has suspended a 30 percent tax on alcohol sales as the emirate seeks to consolidate its position as the Gulf’s tourism and business hotspot.
The emirate will further stop charging for personal alcohol licenses, which were earlier needed for anyone who intended to drink alcohol.
Recently, Dubai relaxed several laws, allowing the sale of alcohol in daylight during Ramadan, and approving home delivery during the pandemic.
The latest move is widely analysed as an attempt to make the city more attractive to foreigners, in the face of competition from neighbours.
“The cut should further support the tourism and hospitality sectors, after the strong recovery from the pandemic. The move should also be welcomed by many residents, who are predominantly expatriates,” Ms. Monica Malik, chief economist at Abu Dhabi Commercial Bank, remarked.
The Maritime and Mercantile International (MMI) as well as African and Eastern, two companies that distribute alcohol in Dubai, stated that they would reflect the cut in tax for consumers.
“Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive, and inclusive for all,” Mr. Tyrone Reid of MMI shared.
“These recently updated regulations are instrumental in continuing to ensure the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE,” Mr. Reid added.
Dubai has historically succeeded in attracting more tourists and wealthy foreign workers than its neighbouring emirates, mostly due to its tolerance of a more liberal lifestyle.