Saudi Press

Saudi Arabia and the world
Tuesday, Aug 05, 2025

Dubai drops 30 percent tax on alcohol to woo tourists, expats

Dubai drops 30 percent tax on alcohol to woo tourists, expats

The changes took effect on Sunday and will run for a one-year trial period, according to domestic media.

Dubai has suspended a 30 percent tax on alcohol and dropped a licence fee requirement previously needed to buy alcohol in the commercial and tourism hub, two major retailers said on social media.

The move is expected to further boost the appeal of Dubai, a part of the United Arab Emirates, to tourists and expatriate residents drawn by its more liberal lifestyle, compared with other Gulf cities.

The changes took effect on Sunday and will run for a one-year trial period, domestic media have said.

“With the removal of 30% municipality tax and a free alcohol licence, buying your favourite drinks is now easier and cheaper than ever,” MMI, one of two major purveyors of alcohol in Dubai, said on its Instagram account on Sunday.

Prices in its stores across the emirate now reflect the removal of the tax, it added.

Another retailer, African+Eastern, confirmed on Sunday the tax no longer applied, but prices would remain subject to a 5 percent value-added tax (VAT).

The Dubai Media Office did not immediately respond to a request for comment.

Dubai’s economy has rebounded swiftly from the COVID-19 pandemic, with gross domestic product (GDP) growing 4.6 percent on the year for the first nine months of 2022.

Tourism is a key pillar of the economy, and tourist numbers grew more than 180 percent in the first half of 2022 over the corresponding 2021 period.

Several Gulf states have introduced VAT as they increasingly turn to taxation to boost non-oil revenue.

While the UAE does not impose an income tax, it will introduce a 9 percent corporate tax from June on profits exceeding 375,000 dirhams ($102,100).

But Dubai, home to the world’s tallest building and islands shaped like palm trees, faces growing regional competition.

Saudi Arabia, for example, is investing billions to burnish its tourism appeal with efforts such as the Red Sea Project, while playing host to major cultural and sporting events.

Qatar is also hoping for increased tourism following the 2022 World Cup.

The first casino in the Gulf, where Islamic rules have long kept gambling off limits, is expected to open in the UAE emirate of Ras al-Khaimah in 2026, at a resort being built and operated by Wynn Resorts.


Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
×