A large number of ex-pat people, along with the tourists, implies that alcohol is a big business in the United Arab Emirates. In order to get a personal or corporate license for alcohol in Dubai, there are some limitations and regulations.
The Liquor Control Law is the legal framework that is governing the liquor license. There are also various types of restrictions on the consumption, sale, and advertisement of alcohol in Dubai.
In order to get the answer to the question “How to operate an alcohol business in Dubai legally?” First, you need to know the process of getting a liquor license in Dubai. You also can contact a law firm in Dubai for a better understanding.
What Are The Types Of Alcohol Business License In Dubai?
When you are planning to get a liquor license in Dubai, it is really important to know how many types of liquor licenses there are in Dubai.
And there are a total of 4 types of liquor licenses in Dubai. They are,
- Type A: License to import liquor.
- Type B: License to sell liquor from a warehouse or shop to third parties.
- Type C: License to serve liquor in a restaurant, club, or hotel.
- Type D: License to purchase liquor.
How To Operate An Alcohol Business In Dubai – Guidelines
Now is the time to discuss the process of getting a liquor license and operating a liquor business in Dubai.
Setup Procedure
Fujairah and RAK are the places where you can easily get a liquor license among the seven Emirates. For RAK, the scenario is something like this. You need to register your business and apply for the license first.
And this license will allow you to import and export licenses. After that, you need to apply to the tourism board of RAK in order to get your liquor license directly. But the scenario is different for Fujairah. No external approvals are needed here, and you can directly apply for the liquor license.
Costing
In Fujairah, a liquor license application costs AED 110,000. This also includes a refundable security deposit of AED 50,000. The cost for the total setup will cost around AED 180,000, which will include the office space and two visas.
The cost is a bit higher in RAK, as it allows you to serve alcohol from the premises. For approval from the RAK Tourism Authority, you need to pay AED 4m. And along with the warehouse lease and general trading license, the total cost will be around AED 4.14m.
Share Capital
Though the setup costs are different for Fujairah and RAK, there is no minimum share capital in both the Emirates.
Limitation on Shareholders
You can set up a liquor business with more than one shareholder. And those shareholders also can be any corporate entity or individuals. There is a limitation for RAK, and that is no Muslims can either hold the liquor license or be a shareholder of a liquor business.
On the other hand, there are no such limitations in Fujairah. And both Muslims and non-Muslims can have a license.
From the above pieces of information, it is now clear that in order to get a license where we need to apply or what is needed to be done.
Some Things To Keep In Mind
Below is some more information that you also need to keep in mind.
- For alcoholic products, the customs duties on CIF or Cost, Insurance, and Freight value depends on the basis of the entry ports of each emirate. For example, there are 50% of customs in Dubai and other emirates have additional sales tax on alcoholic beverages.
- Selling alcoholic beverages in general spaces like supermarkets, restaurants, and grocery stores, which are not authorized to sell alcohol, is not allowed.
- Sharjah is the only Emirate where trading and consuming alcohol is totally prohibited. But there are also exceptions, which are Sharjah International Airport Duty-Free store and Sharjah Wanderers Sports Club.
Conclusion
Keep all these things in mind when you are planning to set up a liquor business in Dubai or the United Arab Emirates. Remember, the rules and regulations are really strict in the UAE when it comes to trading and consuming alcohol.
