By Oyintari Ben
Dubai has scrapped its 30% alcohol tax in what appears to be an effort to increase tourism.
Additionally, it will no longer charge for personal alcohol licenses, which are required for residents who want to drink at home.
For some time now, Dubai has loosened its restrictions, allowing alcohol sales during Ramadan in the open air and enabling home delivery during the period.
In response to competition from nearby cities, it is believed that this most recent action is an effort to make the city more appealing to foreigners.
Maritime and Mercantile International (MMI) and African & Eastern, the two companies that distribute alcohol in Dubai, said they will pass along the tax reduction to customers.
According to MMI spokesman Tyrone Reid, “the emirate’s approach has remained dynamic, sensitive, and inclusive for all since we began our activities in Dubai more than 100 years ago.
“These recently revised restrictions are essential to maintaining the safe and responsible sale and consumption of alcoholic beverages in Dubai and the United Arab Emirates.”
The change, which became effective on Sunday, is not yet known to be permanent. The Financial Times described the move as a one-year trial, citing “industry executives informed of the decision”.
Expatriates outnumber nationals by nine to one in Dubai, known as the Gulf’s “party capital”, and residents commonly drive to Umm al-Quwain and other emirates to buy alcohol in bulk.
Dubai has historically been able to draw more tourists and rich foreign workers than its neighbours, because it tolerates a freer lifestyle.
But as competitors expand their hospitality and finance areas, it is now up against more competition.
To consume, transport, or keep alcohol at home in Dubai, non-Muslim residents must be at least 21 years old and possess an alcohol license, which is a plastic card given by the police.
