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Market note · UAE

UAE: The Region's Premium Showroom

Record tourism, lower alcohol taxes and some of the highest spending per head in the world make the UAE the place where premium spirits brands are seen, tasted and judged.

By Alchemy Brands Ventures3 min read

The UAE is our home market, and it plays a role no other country in our territories can: it is the region's premium showroom. Statista values the UAE spirits market at about $1.72 billion, with around 42.5 million litres consumed and revenue of roughly $165 per person, by far the highest of any market we cover. Out-of-home consumption (around $1.1 billion) is larger than at-home sales, which says a lot about where the market lives: in hotels, bars, restaurants and events.

Tourism is the engine

Dubai welcomed a record 19.59 million international overnight visitors in 2025, up 5% on 2024 and the third record year in a row. Hotel occupancy averaged 80.7%. Visitors come from Western Europe, the GCC, South Asia and the CIS, and they bring their drinking habits with them.

For spirits brands, this means a constant flow of high-spending consumers discovering new bottles in hotel bars and restaurants, then looking for them again at home.

A friendlier tax and licensing framework

On 1 January 2023, Dubai removed its 30% municipality tax on alcohol sales and made personal liquor licences free for residents aged 21 and over. Retail prices fell accordingly, and buying alcohol in Dubai became far simpler for residents.

One side effect: the price advantage of duty free narrowed. Dubai Duty Free reported that liquor sales dropped by about 10% right after the announcement, as residents had less reason to buy on arrival.

Whisky leads, and Indian travellers matter

Whisky accounts for more than half of beverage alcohol sales in travel retail across Africa and the Middle East. Indian travellers, now Dubai International's top nationality, are a big part of that. They are also among the most curious buyers of premium and Indian single malts, which gives brands like Amrut a natural audience in the UAE.

How the market is organised

The UAE is a licensed market: importing and distributing alcohol is done through a small number of licensed operators, with retail through dedicated liquor stores and licensed hotels and venues. Each emirate has its own rules, and Sharjah remains dry. A local partner who knows the licensing and listing processes is essential.

What it means for independent brands

  1. Start with the on-trade. Hotel bars, fine dining and members' clubs are where premium brands are discovered. Listings there create the demand that retail then follows.
  2. Use events. Private tastings, brand dinners and corporate gifting for high-net-worth clients work particularly well in the UAE.
  3. Price for a premium audience. With the highest spend per head in our territories, the UAE is the right place to launch top-end expressions and limited editions.
  4. Use the UAE as a launchpad. Brands seen in Dubai gain credibility with buyers across the GCC, India and Africa, many of whom visit the UAE regularly.

Figures: Statista market outlook (market value, volume, revenue per capita); Dubai Department of Economy and Tourism, via Khaleej Times (visitors 2025); Khaleej Times and MMI (tax change, January 2023); Global Drinks Intel (travel retail).