Dubai being an Islamic State does not support the consumption of liquor but as the economy of this State is heavily dependent on tourism, it cannot apply a complete ban on the sale, purchase or consumption of alcohol.
Dubai unlike Sharjah is not a dry State but it has regulated the consumption and the transactions that take place for alcohol. Out of the few taxes that are imposed by this Emirate, one is imposed on Alcohol. Since the year of 1965, Dubai levies 30% tax on alcohol.
Import, export, manufacture, purchase, consumption or sale of liquor to third parties is all regulated by the Liquor Control Law No. 999 of 1972. This law requires a license to be obtained before indulging in any of the activities mentioned hereinabove in regards to liquor. There are also a number of provisions namely relating to the consumption, advertisement, and sale of alcohol in Dubai (e.g. Penal Code, advertisement laws, taxes and tariffs laws, etc.) Liquor licences in Dubai are issued by the Dubai Police General Headquarter (‘DPGH’).
There are 4 types of liquor licenses.
- Type A: Licence to import liquor.
- Type B: Licence to sell liquor to third parties from a shop or warehouse.
- Type C: Licence to serve liquor within a hotel, club, or restaurant.
- Type D: Licence to purchase liquor.
In addition to the above licence types, Article 2 of the Liquor Control Law states that the DPGH may, on the basis of an application, grant a person a licence to export liquor outside the Emirate, subject to a specific quota restraint.
So, if you wish to obtain alcohol trading license in the UAE, you have two options to do that:
- Type A: you can open the liquor shop with ware house where you will store your imported products. In this case the best option for you will be license registration with RAK freezone and obtain the approval from RAK Tourism Authority. This solution is pretty expensive, since the approval from RAK Tourism authority costs more than 1 million USD.
- Type B: You can register whole sale import/export liquor trading company which will allow you to import and to sell your product to hotels, restaurants, etc. In this case the best option for you will be liquor license with Fujairah freezone with an investment of about 55,000 USD
Please feel free to contact us for further guidelines, requirements and assistance.
It is illegal to advertise the sale of alcohol beverages in Dubai.
Disclaimer: The information presented in this article does not constitute a legal advise.