Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, says drink prices will not change immediately following the removal of a 30 per cent alcohol tax in Dubai. Antonie Robertson / The National
Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, says drink prices will not change immediately following the removal of a 30 per cent alcohol tax in Dubai. Antonie Robertson / The National
Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, says drink prices will not change immediately following the removal of a 30 per cent alcohol tax in Dubai. Antonie Robertson / The National
Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, says drink prices will not change immediately following the removal of a 30 per cent alcohol tax in Dubai. Antonie Robertson / Th

Dubai's suspension of alcohol tax gives hospitality industry a New Year boost


Nick Webster
  • English
  • Arabic

Dubai's decision to scrap a 30 per cent alcohol tax for 2023 has been welcomed by the hospitality sector, but insiders say discounts are unlikely to be passed in full to customers due to rising inflation and operational costs.

The 12-month suspension of the levy on alcohol sales offered a New Year boost to the industry, hot on the heels of one of the busiest final quarters in recent years.

Driven by World Cup regional tourism and UAE visitor numbers returning to pre-pandemic levels, hotels enjoyed a bumper final three months of 2022.

Hotel operators said 2023 was unlikely to match margins achieved last year, but the alcohol tax cut would compensate for other inflationary costs elsewhere.

Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, recently opened Issei, a Peruvian and Japanese rooftop bar and restaurant where cocktails are about Dh60.

'Prices can't be cut overnight'

As his operational costs have increased, a 30 per cent discount was unlikely to be passed on in full, he said.

“There are lots of things to consider, and we cannot change our prices overnight as we have already purchased stock for around two weeks under the old prices,” he said.

“We will pass on some of the benefit to the customer, but there are so many other inflationary pressures on our restaurants to consider.

“The rising prices of food and fuel have impacted our margins, and we have not passed these extra costs on to our customers.

“This tax cut will allow us to maintain our high standards, to operate fairly and give our guests the quality they deserve.”

Mr Sattanathan said the hotel was likely to pass on some discounts within weeks, once current stock had been replenished at the new discounted rates.

Prices of food and beverages steadily increased throughout 2022 due to global inflation, but began to decrease towards the end of the year, receding to a seven-month low of 4.5 per cent in October, according to global analysts at Focus Economics.

The UAE economy is expected to grow by 7.6 per cent in 2023, up from the 5.3 per cent Central Bank forecast in July.

Great news for businesses and customers

Nick Comaty, vice president for Middle East, Africa, Turkey and India of food and beverage operations and development at Ennismore hospitality, said the tax cut in Dubai would offer a huge boost for business.

“In general, it is great news for the industry, the business and consumers,” he said.

“It is something we were hoping for a long time, it is only a trial basis but hopefully it will remain.

“While alcohol prices are extremely high in restaurants, hotels and bars ― it is not because operators are making a huge margin.

“I have worked all over the world and our margins were always better than here [in Dubai].

“The biggest issue was always the cost, now that has been reduced you will see better pricing across all our venues.”

The Dh270 personal alcohol licence fee has been scrapped as of January 1, while alcohol consumption was decriminalised in 2020 under wider legal reforms.

Alcohol law changed under 2020 legal reforms - in pictures

  • Alcohol consumption is no longer criminalised and licences are no longer required. Previously, prosecutions for drinking were rare but an individual could be charged for consuming alcohol without a licence if they were arrested for another offence. Getty Images
    Alcohol consumption is no longer criminalised and licences are no longer required. Previously, prosecutions for drinking were rare but an individual could be charged for consuming alcohol without a licence if they were arrested for another offence. Getty Images
  • If a couple were married in their home country, but were divorced in the UAE, they can expect the process to be similar in a UAE court. The laws of the country where the marriage took place would be applied. Getty Images
    If a couple were married in their home country, but were divorced in the UAE, they can expect the process to be similar in a UAE court. The laws of the country where the marriage took place would be applied. Getty Images
  • The law will ensure ‘Good Samaritans’ who intervene in situations where people are in need cannot be held liable for the outcome of those they help. Under a long-standing, but rarely used clause, it had been possible for someone who went to the aid of someone, to give CPR or other first aid, to be help accountable for their injury or death. Getty Images
    The law will ensure ‘Good Samaritans’ who intervene in situations where people are in need cannot be held liable for the outcome of those they help. Under a long-standing, but rarely used clause, it had been possible for someone who went to the aid of someone, to give CPR or other first aid, to be help accountable for their injury or death. Getty Images
  • There are a number of amendments seeking to protect the rights of women. There will be no longer a distinction of crimes known as ‘honour crimes’, where a male relative can get a lighter sentence for assaulting a female relative under the guise of ‘protecting honour’. Getty Images
    There are a number of amendments seeking to protect the rights of women. There will be no longer a distinction of crimes known as ‘honour crimes’, where a male relative can get a lighter sentence for assaulting a female relative under the guise of ‘protecting honour’. Getty Images
  • For the first time the law will allow for the legal cohabitation of unmarried couples. Until now, it is has been illegal for an unmarried couple, or even unrelated flatmates, to share a home in the Emirates. Getty Images
    For the first time the law will allow for the legal cohabitation of unmarried couples. Until now, it is has been illegal for an unmarried couple, or even unrelated flatmates, to share a home in the Emirates. Getty Images
  • The new law mandates the translators are provided for defendants and witnesses in court, if they do not speak Arabic. The court must ensure legal translators are available. Getty Images
    The new law mandates the translators are provided for defendants and witnesses in court, if they do not speak Arabic. The court must ensure legal translators are available. Getty Images

Previously, a charge for consuming alcohol without a licence could be tacked on if someone was arrested for another offence.

That happened rarely but is no longer enforced at all by law.

A valid Emirates ID is still required to purchase alcohol, and buyers must be 21 and consume responsibly and respectfully.

Alcohol stores across Dubai were busy changing price lists and displaying new offers across their retail outlets on Monday.

The change is expected to result in fewer people travelling to buy liquor in the Northern Emirates, where it has been traditionally less expensive ― without the municipality tax.

“The reality is a lot of alcohol was coming into Dubai from the Northern Emirates, now the prices are more aligned that will be removed completely,” said Mr Comaty.

“You will begin to see a big drop in pricing on some products, but less so on others.

“It is about getting that right balance.

“We have already discussed internally to pass this on to the consumer, but in a way that adds value and better service.

“All restaurateurs need to lead the way by providing better value and discounts for customers.”

The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre

Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

360Vuz PROFILE

Date started: January 2017
Founder: Khaled Zaatarah 
Based: Dubai and Los Angeles
Sector: Technology 
Size: 21 employees
Funding: $7 million 
Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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UAE currency: the story behind the money in your pockets
Roll of honour

Who has won what so far in the West Asia Premiership season?

Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain

Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons

West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins

UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles

West Asia Cup - Winners: Bahrain; Runners up: Dubai Exiles

West Asia Trophy - Winners: Dubai Hurricanes; Runners up: DSC Eagles

Final West Asia Premiership standings - 1. Jebel Ali Dragons; 2. Abu Dhabi Harlequins; 3. Bahrain; 4. Dubai Exiles; 5. Dubai Hurricanes; 6. DSC Eagles; 7. Abu Dhabi Saracens

Fixture (UAE Premiership final) - Friday, April 13, Al Ain – Dubai Exiles v Abu Dhabi Harlequins

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
Match info:

Leicester City 1
Ghezzal (63')

Liverpool 2
Mane (10'), Firmino (45')

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

GOODBYE%20JULIA
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EMohamed%20Kordofani%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ESiran%20Riak%2C%20Eiman%20Yousif%2C%20Nazar%20Goma%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20101hp%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20135Nm%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%20Six-speed%20auto%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh79%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Credit Score explained

What is a credit score?

In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.

Why is it important?

Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.

How is it calculated?

The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.

How can I improve my score?

By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.

How do I know if my score is low or high?

By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.

How much does it cost?

A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.

The specs: 2018 Maserati GranTurismo/GranCabrio

Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)

Engine 4.7L V8

Transmission Six-speed automatic

Power 460hp @ 7,000rpm

Torque 520Nm @ 4,750rpm

Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km

The%20Specs%20
%3Cp%3E%3Cstrong%3ELamborghini%20LM002%3C%2Fstrong%3E%3Cbr%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%205.2-litre%20V12%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20450hp%20at%206%2C800rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E500Nm%20at%204%2C500rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3EFive-speed%20manual%3Cbr%3E%3Cstrong%3E0-100kph%3A%3C%2Fstrong%3E%209%20seconds%20(approx)%3Cbr%3E%3Cstrong%3ETop%20speed%3A%3C%2Fstrong%3E%20210kph%20(approx)%3Cbr%3E%3Cstrong%3EYears%20built%3A%3C%2Fstrong%3E%201986-93%3Cbr%3E%3Cstrong%3ETotal%20vehicles%20built%3A%3C%2Fstrong%3E%20328%3Cbr%3E%3Cstrong%3EValue%20today%3A%3C%2Fstrong%3E%20%24300%2C000%2B%3Cbr%3E%3C%2Fp%3E%0A
Venom

Director: Ruben Fleischer

Cast: Tom Hardy, Michelle Williams, Riz Ahmed

Rating: 1.5/5

Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EMaly%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Mo%20Ibrahim%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%20International%20Financial%20Centre%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20%241.6%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2015%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%2C%20planning%20first%20seed%20round%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GCC-based%20angel%20investors%3C%2Fp%3E%0A
Updated: January 03, 2023, 11:10 AM