Dubai has eliminated its 30% alcohol tax in what appears to be an effort to increase tourism.
Additionally, it will no longer charge for personal alcohol licenses, 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 from nearby cities, 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.
“Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive for all,” MMI spokesman Tyrone Reid told AP.
“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. According to “industry executives informed of the decision,” the move would be a one-year trial, according to The Financial Times.