Dubai is to reinstate a 30 per cent tax on the sale of alcohol from January 1, following a two-year suspension of the levy.
Hospitality chains in the emirate said they had been informed of the directive. Alcohol supplier African+Eastern confirmed to The National that it had received notification from Dubai Municipality.
“The suspension of tax has always been on a trial basis, and as a trusted partner of the Dubai Government, we remain fully supportive and respectful of this decision,” African+Eastern said in its statement. “As the news is still very fresh, we are currently assessing the situation and remain committed to delivering the best product, service and value proposition we can for all stakeholders.” The process of obtaining an alcohol licence in the emirate would be unchanged, the statement added.
Dubai Municipality suspended the tax for one year on January 1, 2023. This was extended for a second year, although not officially announced.
How does the alcohol tax work?
Businesses selling alcohol – including off-licence chains such as Maritime & Mercantile International (MMI) and African+Eastern, as well as bars and restaurants – are required to pay the 30 per cent tax.
Venues pay the levy when buying their stock at cost, which is far lower than the retail price paid by the customer. The sale price of a drink also factors in business costs, such as staffing and building rents, and other associated fees.
Abu Dhabi introduced a 30 per cent tax on alcohol sold in off-licences in 2018.
Will drink prices increase by 30 per cent?
If an alcoholic drink costs Dh50 at a Dubai bar this month, will it cost Dh65 in the New Year?
It is not yet clear what action individual businesses will take, but consumers are unlikely to notice large price increases. As the 30 per cent tax is not paid on the final retail price, but rather the initial stock price, businesses will not face having to recoup such a large amount.
If, for example, a business paid Dh15 for a product at stock, the 30 per cent tax would mean the price after tax would rise to Dh19.50.
One industry worker said it was more likely that alcohol prices would rise by about Dh5.
Did customers benefit from the tax suspension?
Some venues reduced prices following the tax waiver, with discounted prices at off-licences. But hospitality leaders did say they would be unable to pass on the savings in full due to rising inflation and operational costs. The rising cost of living – including food and fuel – was a factor for operators.
Nick Comaty, hospitality firm Ennismore's vice president of food and beverage operations and development for the Middle East, Africa, Turkey and India, said at the time that the tax cut in Dubai would offer a huge boost for businesses.
“In general, it is great news for the industry, the business and consumers,” he said. “While alcohol prices are extremely high in restaurants, hotels and bars ― it is not because operators are making a huge margin. I have worked all over the world and our margins were always better than here [in Dubai].”
Tax suspension part of wider changes
The Dh270 personal alcohol licence fee was also scrapped in January 2023. Similar licensing requirements were removed in Abu Dhabi in 2020. Alcohol consumption in the UAE was also decriminalised in 2020 under broader legal reforms.
While alcohol should be consumed responsibly and respectfully, it is not an offence to drink it, as long as a person is 21 or older, and it is done in private homes or licensed premises.
Dubai Municipality and Dubai Media Office have been contacted for further comment.
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Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km
Company%C2%A0profile
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Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Global state-owned investor ranking by size
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EMILY%20IN%20PARIS%3A%20SEASON%203
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The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
UAE currency: the story behind the money in your pockets
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Mohammed bin Zayed Majlis
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
SQUADS
South Africa:
Faf du Plessis (capt), Hashim Amla, Temba Bavuma, Farhaan Behardien, Quinton de Kock (wkt), AB de Villiers, JP Duminy, Imran Tahir, David Miller, Wayne Parnell, Dane Paterson, Andile Phehlukwayo, Dwaine Pretorius, Kagiso Rabada
Coach: Ottis Gibson
Bangladesh:
Mashrafe Mortaza (capt), Imrul Kayes, Liton Das (wkt), Mahmudullah, Mehidy Hasan, Mohammad Saifuddin, Mominul Haque, Mushfiqur Rahim (wkt), Mustafizur Rahman, Nasir Hossain, Rubel Hossain, Sabbir Rahman, Shakib Al Hasan, Soumya Sarkar, Tamim Iqbal, Taskin Ahmed.
Coach: Chandika Hathurusingha
If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
UAE currency: the story behind the money in your pockets
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