The sale and consumption of alcohol is strictly controlled and must not be in public except in licensed hotels, restaurants and bars. A liquor licence is required by non-Muslim resident consumers who wish to purchase alcohol for home consumption in the UAE.

The wine market is concentrated on higher-end wines from around the globe. Duty Free sales have become a significant sales channel in the UAE. The number of Australian wines in Duty Free shops increased dramatically after a visit from Dubai Duty Free to Australia in 2004.

The high number of UK tourists visiting Dubai has contributed to this success as these visitors are familiar with Australian wines. Australia has eroded French market share considerably in the past few years. Red wines account for the greatest sales volume.

Market Requirements

As a member of the GCC, the UAE adheres to its laws and regulations relating to common external tariff rates and importing requirements. Sensitive items may be exempted from GCC laws and regulations. Alcohol is such an item and consequently the UAE controls the levels of taxation internally. The importation of alcohol is strictly controlled .