UAE Launches First Brewery in the Gulf After Lifting Alcohol Tax

Dubai is set to break new ground in the Gulf region by establishing a large-scale brewery for beer production, marking a historical shift given the region’s traditional restrictions on the sale and consumption of alcohol.

A Groundbreaking Project

The joint venture, named “Seroco,” combines efforts from Dutch beer giant Heineken and Dubai-based Maritime and Mercantile International (MMI). The project has secured all necessary permits and plans to begin construction by the end of next year, with an expected completion date in 2027. The brewery will focus on producing globally renowned beer brands.

Although the UAE already hosts a liquor production facility in Ajman, known as “Unisat,” this new venture in Dubai sets a precedent in scale and ambition.

Dubai: A Hub for Business and Tourism

Dubai, a key business and tourism hub in the Middle East, boasts a diverse cultural and ethnic demographic. For over two decades, authorities have allowed the sale and consumption of alcohol while gradually relaxing regulations. Earlier this year, Dubai eliminated its 30% sales tax on alcohol and waived alcohol licensing fees, though restrictions on sales to Muslims remain in place.

The UAE, comprised of seven emirates, continues to prioritize foreign tourism, introducing policies and infrastructure to attract international visitors.

The Gulf’s First Casino

In line with these modernization efforts, Ras Al Khaimah is building the Gulf’s first casino under the management of U.S.-based Wynn Resorts. Additionally, Abu Dhabi issued its first license last year allowing a restaurant to brew beer on-site.

Meanwhile, the new Dubai brewery will produce popular brands such as Heineken, Kingfisher, Amstel, and Birra Moretti. The operator plans to expand its workforce to 190 full-time employees, up from the current 60.

Meeting Growing Demand

For over 20 years, Seroco has supplied the UAE with alcoholic beverages. Local beer production will meet the rising demand in a market that attracts over 17 million tourists annually.

Tourism on the Rise

According to government data, Dubai welcomed 10.6 million visitors in the first half of this year, an 8% increase compared to the same period last year. By the end of 2023, the number of tourists reached 17.3 million. Visitors from Western Europe accounted for approximately 20% of total arrivals, demonstrating Dubai’s growing appeal as an international destination.