Dubai has scrapped its 30 percent alcohol tax ostensibly to boost tourism.
It will also stop charging for a personal alcohol license – anyone who wants to drink needs to carry one.
Dubai has been relaxing laws for some time, allowing the sale of alcohol during daylight hours during Ramadan and allowing home delivery during the pandemic.
The latest move is seen as an attempt to make the city more attractive to foreigners in the face of competition from its neighbours.
Two alcohol distributors in Dubai, Maritime & Mercantile International (MMI) and African & Eastern, said they would pass on the tax cuts to consumers.
“Since we began our operations in Dubai 100 years ago, Emirates’ approach has been dynamic, sensitive and inclusive,” MMI spokesman Tyrone Reed told the AP.
“These recently updated regulations are important to ensure the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”
It is unclear whether the move, which took effect Sunday, will be permanent. The Financial Times described the move as a year-long trial, “informing industry executives of the decision”.
Foreigners outnumber citizens nine to one in Dubai, known as the “party capital” of the Gulf, and residents usually head to Umm Al Quwain and other emirates to buy large quantities of alcohol.
Dubai has historically been able to attract more tourists and wealthy expatriate workers than its neighbors, in part due to its tolerance of a more liberal lifestyle.
But it now faces increasing competition from rivals developing its hospitality and financial sectors.
Non-Muslims in Dubai must be at least 21 years old to drink alcohol, and have an alcohol license – a plastic card issued by the police.
While bars and nightclubs rarely ask for a card, drinkers without one can face fines or arrest.
