Dubai is scrapping its 30% tax on alcohol sales with a view to attracting more tourists, two companies that distribute alcohol in the oil-rich emirate, Maritime and Mercantile International (MMI) and African & Eastern, reported on Monday.
The news has not yet been confirmed by the authorities.
According to local media, the new measure has been in effect since Sunday. It will lead to a sharp drop in the prices of alcohol, which are among the highest in the world: a half-litre of beer costs the equivalent of about €15.
Moreover, according to MMI and African & Eastern, the license to buy alcohol will be free from now on.
One-year pilot project
In the emirate, only non-Muslims over the age of 21 can buy alcohol.
Dubai has been relaxing laws for some time now. For example, it was recently decided to allow the sale of alcohol during the day during Ramadan, and alcohol may now be delivered to homes.
This latest measure is seen as an attempt to make Dubai more attractive to foreigners, with an eye to competing with its neighbors. However, it is not clear whether it will be in place permanently. According to the Financial Times, it is a one-year pilot project.
Increasing competition from regional rivals
Dubai, known as the party capital of the Gulf region, is home to a great deal more foreigners than natives. Residents often drive to Umm al-Qaiwain and other emirates to stock up on booze.
Dubai has always managed to attract more tourists and wealthy foreign workers than neighbouring emirates, in part because it tolerates a freer lifestyle, but the emirate has been facing increasing competition from regional rivals such as Qatar, which recently hosted the FIFA World Cup.
