This is why Dubai is suspending its hefty alcohol tax

Additionally, it will no longer charge for personal alcohol licences, 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, 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, “Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive for all.”

“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”

The change, which became effective on Sunday, is not yet known to be permanent.

As per “industry executives informed of the decision,” the move would be a one-year trial, according to The Financial Times.

In Dubai, the “party capital” of the Gulf, foreigners outnumber locals nine to one, and locals frequently travel to Umm al-Quwain and other emirates to purchase alcohol in large quantities.

Because it tolerates a more free lifestyle, Dubai has historically been able to draw more tourists and rich foreign workers than its neighbours.

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 licence, which is a plastic card given by the police.

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