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With increasing competition for tourism in Persian Gulf region, Dubai’s New Year’s resolution appears to be attracting more visitors and expatriates as the emirate suspended its alcohol tax and lowered the fee for drinking licenses this week.
Dubai’s tolerance of liberal lifestyles, at least Compared to its neighbors, it’s been one of the Gulf’s top destinations for years for tourists and expats, both groups of whom face a 30 percent liquor tax. While Dubai doesn’t allow Muslims – who make up the vast majority of its citizens – to drink, the easing of rules will still have far-reaching implications, given that about 90 percent of the UAE’s population is foreign.
The easing of regulations also comes as alcohol-free Saudi Arabia is trying to lure expats from Dubai, one of the UAE’s seven emirates and the region’s economic hub. (Last year, the UAE also relaxed laws governing heterosexual sex and marriage.) Dubai’s population grew by more than 7 percent to 3.5 million from June 2019 to June 2022, according to government estimates.
Dubai’s two main liquor retailers said after the new alcohol rules went into effect on January 1 their prices would reflect the change. “New year, new prices!” African and Eastern, one of the retailers, wrote on Instagram.
A license is required for foreign residents in Dubai Drinking, transporting or storing alcohol at home. But the fee of around $73 for the license has also been eliminated “due to recent guidance from the Dubai government,” said retailer Maritime and Mercantile International, a subsidiary of state-owned Emirates Group. The fee was levied only on residents, as tourists can obtain temporary licenses for free.
In return, Qatar bans the sale of alcohol in World Cup stadiums
Although alcohol is not widely available in Dubai, it can be found in many hotels and other establishments that attract tourists and expats. (The UAE Embassy in Washington advises tourists not to ask for alcohol if it’s not on the menu.)
However, the privilege of drinking in Dubai comes at a price, with many vendors incorporating the 30 per cent tax into drink prices. A pint of Budweiser costs around US$13 at Biggles Pub, a hotel bar near Dubai Airport. Representatives of several hotels in Dubai did not immediately respond to requests for comment on whether they would lower their rates in line with the tax suspension.
It was also unclear whether the suspension would be permanent. The Financial Times reported that the changes were part of a year-long testing phase. The Dubai government did not immediately respond to a request for comment.
“Drinks in Dubai are the most expensive drinks I’ve ever bought,” said Lawrence, a 40-year-old British expat who recently moved to the emirate. He very rarely orders drinks with dinner because of the prohibitively high prices, he said.
Lawrence, who spoke on condition that only his first name be used as he was not authorized by his employer to speak on the subject, said many expats in Dubai buy alcohol from duty-free shops when travelling. The alcohol tax suspension will save him from those errands, he said, although he wasn’t optimistic the savings would be passed on to customers in the bars.
Competition for tourists and foreign professionals is intensifying in the Gulf region, with countries like Saudi Arabia and Qatar trying to break their dependency on oil revenues.
Saudi Arabia has made tourism a pillar of its Vision 2030 plan, which includes the following ambitious projects such as one aiming to transform the Kingdom’s North West Coast into a “global wellness ultra-luxury destination focused on transformative personal journeys inspired by wellness, art, culture and purity”. But the kingdom’s reputation has been tarnished by the state-ordered assassination of dissident Jamal Khashoggi, a columnist for the Washington Post, and some pundits have questioned the feasibility of such costly ventures.
Qatar, a small, Often overshadowed by its larger neighbors, the high-energy nation drew disproportionate attention last year when it hosted the 2022 FIFA Men’s World Cup in an apparent attempt to prove itself as a viable destination for international visitors. But the tournament also prompted an examination of the country’s human rights issues, particularly with regard to the treatment of migrant workers. And it sparked a backlash when its last-minute reversal to ban the sale of alcohol deprived thousands of thirsty football fans of beer.