There’s also cheap alcohol in Dubai now

The new year in Dubai started “wet”, so to speak: the emirate abolished the alcohol sales tax at the beginning of the year. This was 30 percent before. The obligation to pay to obtain an alcohol license has also been abolished. However, they remain mandatory for control reasons.

The new regulation must last at least 12 months. The 5% VAT on alcohol sales remains in effect.

With these measures, alcohol consumption in Dubai is expected to become cheaper. In the past, a beer was worth 10-15 francs. A bottle of average wine is 100 francs. The two largest beverage distributors in the emirate announced that the tax savings will be passed on to consumers. These are International Shipping and Trade, owned by the Emirates Group, and semi-public Africa and the East.

This announcement of the companies came as a complete surprise at the beginning of the year. According to their own statements, both companies are based on a rule change in the Emirate. But so far, there has been no official statement from the authorities or the ruling family.

Why this change?

With the removal of the tax, Dubai will lose a significant amount of money. Local media such as “The National” claim that it wants to discourage residents and tourists of Dubai from consuming cheaper alcohol in neighboring emirates.

It is also conceivable that Dubai would trigger further liberalization moves in the fight for foreign workers and tourists. This could set one apart from the more restrictive countries in the region. Alcohol is completely banned in Saudi Arabia, Kuwait, Iran and the Emirate of Sharjah. Qatar or Oman has high alcohol taxes.

80 percent of Dubai residents are immigrants, non-natives and workers. To remain attractive to them, Dubai has been liberalizing for years. On the one hand, the issuance of immigration and work permits has been simplified. On the other hand, working conditions were increasingly adapted to Western standards. Since last year, unmarried couples have also been allowed to live under the same roof.

There has been diversification in tourism. While Dubai used to be mainly aimed at luxury tourists, in recent years more and more hotels in the 2 and 3 star segments are being built. This means that high growth targets can continue to be met. Cheaper alcohol will drive this trend.

But it cannot be assumed that Dubai will become a new Mallorca. You are still only allowed to drink alcohol at home, in your own hotel, or in a licensed bar. If you want to buy alcohol for private consumption from official outlets, you must apply for a license. It is only given to non-Muslims from the age of 21.