[UAE] Dubai scraps 30% alcohol tax

[UAE] Dubai scraps 30% alcohol tax
03 Jan 2023

Dubai has scrapped a 30 per cent tax on alcohol and will no longer charge tourists or expats for permits to buy alcoholic drinks as part of efforts to attract more foreign workers and visitors in the face of growing regional competition, WRAL News reports.

Two major retailers in the city, located in the United Arab Emirates (UAE) have already announced price reductions to reflect the tax cut.

On January 1, Maritime and Mercantile International (MMI) posted on its Instagram account, "Buying your favorite drinks is now easier and cheaper than ever." MMI is one of Dubai's biggest alcohol retailers and a subsidiary of the state-owned Emirates group, has 21 stores across the city, according to its website.

Another drinks retailer, African + Eastern, reportedly announced on its Instagram page on January 1 that it had removed the tax and was now offering personal liquor licenses at zero cost, according to CNN reporting.

Muslims are prohibited from acquiring licenses for the purchase of alcohol in Dubai.

The changes will be in place for one year as part of a trial period, according to a Reuters report that cites domestic media sources.

In the face of emerging competition from countries in the region, several UAE cities have made a move towards globally attractive policies over the past years, including the legalisation of cohabitation by unmarried couples and permitting the sale of alcohol during the holy month of Ramadan, something that was previously banned across the country.

Most recently, a Monday-to-Friday work week was introduced to improve synchronicity with global business, following years of a Sunday-to-Thursday schedule.

The sale of alcohol in the UAE is already more liberal than in neighbouring Gulf countries. Almost 90 per cent of the UAE’s population is made up of foreigners.

International visitors spent more than $29 billion in Dubai in 2022, more than anywhere else in the world, according to data from the World Travel and Tourism Council.

However, the city reportedly faces increasing competition from neighbouring Saudi Arabia, which is investing heavily in its own tourism sector as it diversifies its economy away from oil.

Crown Prince Mohamed bin Salman is trying to rebrand the kingdom's image away from being a conservative Muslim country in order to attract global businesses, talent and tourism. 

Parts of its Red Sea Global resort - including a collection of mega-hotels - are due to open this year.


Source: WRAL News

(Quote via original reporting)

Dubai has scrapped a 30 per cent tax on alcohol and will no longer charge tourists or expats for permits to buy alcoholic drinks as part of efforts to attract more foreign workers and visitors in the face of growing regional competition, WRAL News reports.

Two major retailers in the city, located in the United Arab Emirates (UAE) have already announced price reductions to reflect the tax cut.

On January 1, Maritime and Mercantile International (MMI) posted on its Instagram account, "Buying your favorite drinks is now easier and cheaper than ever." MMI is one of Dubai's biggest alcohol retailers and a subsidiary of the state-owned Emirates group, has 21 stores across the city, according to its website.

Another drinks retailer, African + Eastern, reportedly announced on its Instagram page on January 1 that it had removed the tax and was now offering personal liquor licenses at zero cost, according to CNN reporting.

Muslims are prohibited from acquiring licenses for the purchase of alcohol in Dubai.

The changes will be in place for one year as part of a trial period, according to a Reuters report that cites domestic media sources.

In the face of emerging competition from countries in the region, several UAE cities have made a move towards globally attractive policies over the past years, including the legalisation of cohabitation by unmarried couples and permitting the sale of alcohol during the holy month of Ramadan, something that was previously banned across the country.

Most recently, a Monday-to-Friday work week was introduced to improve synchronicity with global business, following years of a Sunday-to-Thursday schedule.

The sale of alcohol in the UAE is already more liberal than in neighbouring Gulf countries. Almost 90 per cent of the UAE’s population is made up of foreigners.

International visitors spent more than $29 billion in Dubai in 2022, more than anywhere else in the world, according to data from the World Travel and Tourism Council.

However, the city reportedly faces increasing competition from neighbouring Saudi Arabia, which is investing heavily in its own tourism sector as it diversifies its economy away from oil.

Crown Prince Mohamed bin Salman is trying to rebrand the kingdom's image away from being a conservative Muslim country in order to attract global businesses, talent and tourism. 

Parts of its Red Sea Global resort - including a collection of mega-hotels - are due to open this year.


Source: WRAL News

(Quote via original reporting)

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