Dubai has scrapped its 30% alcohol tax and will stop charging for personal alcohol licenses, which anyone intending to drink must carry with them, in a bid to make the city more attractive to foreigners, in the face of competition from neighboring countries .
The BBC reports it.
It is not clear whether the measure, which went into effect yesterday, will be permanent.
The Financial Times described the move as a one-year trial, citing "industry executives briefed on the decision".
Foreigners living in Dubai outnumber residents nine to one, the city is known as the "party capital" of the Gulf, and citizens usually travel to Umm al-Quwain and other emirates to buy alcohol in bulk.
Historically Dubai has managed to attract more tourists and affluent foreign workers than its neighbours, in part due to its tolerance for a more liberal lifestyle.
But now it faces growing competition from rivals who are developing the hospitality and finance sectors.
Non-Muslims in Dubai must be at least 21 years old to drink alcohol and carry a license, a card issued by the police.
Bars and nightclubs rarely ask to see the card, but those who consume alcohol without one can face fines or imprisonment.
