The changes took effect on Sunday and will run for a one-year trial period, according to domestic media.

Dubai has suspended a 30 percent tax on alcohol and dropped a licence fee requirement previously needed to buy alcohol in the commercial and tourism hub, two major retailers said on social media.

The move is expected to further boost the appeal of Dubai, a part of the United Arab Emirates, to tourists and expatriate residents drawn by its more liberal lifestyle

“With the removal of 30% municipality tax and a free alcohol licence, buying your favourite drinks is now easier and cheaper than ever,” MMI, one of two major purveyors of alcohol in Dubai, said

Another retailer, African+Eastern, confirmed on Sunday the tax no longer applied, but prices would remain subject to a 5 percent value-added tax (VAT).

Dubai’s economy has rebounded swiftly from the COVID-19 pandemic, with gross domestic product (GDP) growing 4.6 percent on the year for the first nine months of 2022.

Tourism is a key pillar of the economy, and tourist numbers grew more than 180 percent in the first half of 2022 over the corresponding 2021 period.

While the UAE does not impose an income tax, it will introduce a 9 percent corporate tax from June on profits exceeding 375,000 dirhams ($102,100).