Dubai has eliminated its 30 percent alcohol tax in an apparent effort to increase tourism.

It will also eliminate fees for personal alcohol licences, which are required for anyone who intends to consume alcohol.
Dubai has been loosening its laws for some time, allowing alcohol to be sold during daylight hours during Ramadan and allowing home delivery during the pandemic.

This latest action is believed to be an effort to make the city more appealing to foreigners in response to competition from neighboring cities.

The two distributors of alcoholic beverages in Dubai, Maritime and Mercantile International (MMI) and African & Eastern, have stated that they will pass on the tax reduction to consumers.

MMI spokesman Tyrone Reid told AP said, “Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive for all.” 

MMI spokesman Tyrone Reid told AP said, “Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive for all.”  hese recently revised regulations are essential for continuing to ensure the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the United Arab Emirates.

It is not clear if the move, which took effect on Sunday, will be permanent. The Financial Times described the move as a one-year trial, citing “industry executives informed of the decision.”.

In Dubai, the “party capital” of the Gulf, expatriates outnumber nationals nine to one, and residents frequently travel to Umm al-Quwain and other emirates to purchase alcohol in bulk.

Due in part to its tolerance of a more liberal lifestyle, Dubai has historically been able to attract more tourists and wealthy foreign workers than its neighbours.

Now, however, it faces increasing competition from rivals who are expanding their hospitality and finance sectors.

Non-Muslims in Dubai must be at least 21 years old and carry an alcohol licence, a police-issued plastic card, in order to consume alcoholic beverages.

Despite the fact that bars and nightclubs rarely request identification cards, those who consume alcohol without one can face fines or arrest.