Dubai ends 30 per cent tax on liquor sales and liquor royalties in New Year Decree – National

Dubai on Sunday ended its 30 percent tax on liquor sales in the Sheikh and made required liquor licenses free, ending a long-standing revenue stream for its ruling family in what appears to be a further boost to tourism in the emirate.

The sudden New Year’s announcement, made by Dubai’s two state-affiliated liquor dealers, appears to have come from a government decree by the ruling Al Maktoum family. However, government officials did not immediately take note of the decision and did not respond to questions from The Associated Press.

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But that follows years of relaxed alcohol regulations in the sheikh, who now sells alcohol during the day during Ramadan and began door-to-door deliveries during the lockdown earlier this month.

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Alcohol sales have long served as an important barometer of the economy of Dubai, one of the most popular tourist destinations in the United Arab Emirates and home to long-haul airline Emirates. During the last World Cup in nearby Qatar, Dubai’s many bars attracted traveling football fans.

Alcohol retailer Maritime and Mercantile International, part of the broader Emirates group, said in a statement.

“Since we began operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and open to all,” said MMI’s Tyrone Reid. “These recently updated regulations are essential to continue to ensure the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the United Arab Emirates.”

MMI did not respond to questions about whether the decision was permanent. However, an advert run by MMI urged customers to shop at its stores, saying: “You no longer have to travel to the other emirates”. Residents of Dubai have long traveled to Umm al-Quwain and other emirates to buy duty-free alcohol in bulk.

African & Eastern, the second largest liquor retailer believed to be at least partially owned by the state or its subsidiaries, also announced an end to local taxes and royalties.

According to Dubai law, non-Muslims must be at least 21 years old to consume alcohol. Drinkers are to be provided with plastic cards issued by Dubai Police, allowing them to purchase, transport and consume beer, wine and spirits. Otherwise they risk fines and arrests, although the sheikh’s vast network of bars, nightclubs and lounges almost never ask to see the permit.

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But the relatively liberal Dubai is an exception among many in the region. Sharjah, an emirate bordering Dubai to the north, bans alcohol, as do neighboring countries like Iran, Kuwait and Saudi Arabia.

Abu Dhabi, the capital of the oil-rich United Arab Emirates, ended its alcohol licensing system in September 2020.

Juliet Ingram

Total web buff. Student. Tv enthusiast. Evil thinker. Travelaholic. Proud bacon guru.

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