Dubai removed its 30 percent tax on alcohol on Sunday, January 8, along with the fee for a licence that individuals need to buy alcohol. This is according to local beverage distributors, reports the Financial Times.
The suspension is expected to last for a test period of one year.
Over 90% of Dubai’s population are foreign residents and alcohol has been widely available for several years, but the hefty municipality tax drove up alcohol prices in the city-state.
Alcohol distributors Maritime and Mercantile International said the move would likely boost the local hospitality industry.
The decision is the latest in a series of measures aimed at cementing Dubai’s position as the dominant hub for tourism and investment in the Middle East, as the semi-independent city-state in Muslim-majority United Arab Emirates is facing increasing competition from Qatar and Saudi Arabia.
