Amid the economic crisis, Dubai allows alcohol sales

Dubai relaxes the laws that penalize the purchase and consumption of alcohol. The country’s economy has been seriously hurt by the coronavirus pandemic. Relaxing the legislation governing the sale and possession of alcoholic beverages aims to accelerate the economic recovery of the country.

A few months ago, the main alcohol distributors in the emirate released their home delivery. Changes in legislation have simplified and lowered the obstacles to purchasing beer, wine, and other alcoholic drinks in the city State.

Previously, Dubai police issued red cards for non-Muslim residents. It was a way of permission to buy, transport, and consume alcohol and circumvent the ban, fines, and even arrest. They have been replaced by black cards and a simplified application. 

The UAE consumes the most significant amount of alcohol in the region

Drinking alcohol is a big business for the Al Maktoum family, who rule Dubai with an iron fist. A bottle of alcohol has an import tax of 50% and an additional fee of 30% for its sale in liquor stores in the city, all state-owned. The United Arab Emirates, the federation of seven emirates led by Abu Dhabi, has one of the highest alcohol consumption rates in the region. Alcohol consumption continues despite the fact that UAE is one of the states that prohibits spirits. It is also the case in neighboring countries such as Saudi Arabia, Iran, and Kuwait. 

On the other hand, the purchase and intake of alcohol is a thermometer of economic confidence. Before the depression caused by the spread of Covid-19, alcohol consumption had already begun to suffer, in the midst of the fall in oil prices. In 2019, it dropped by 3.5% compared to the previous year, below 130 million liters. At the end of 2019, Dubai removed barriers to purchase alcohol from state-owned and specialty establishments. Now you only need to present a passport to get a bottle.

The emirate now is seeking to quickly revive the hotel and leisure industry. The state’s economy depends on it. Last month, coinciding with the reopening of the country to tourism, its non-oil sector led the first increase in activity in five months. But recovery is still a long way off, weighed down by falling prices. The coronavirus pandemic infected about 66,000 people in UAE with 369 fatalities.

However, Capital Economics stated that constant relaxation of coronavirus measures and the prospect of a rescheduled Expo Dubai 2020 for October 2021, supports optimism.