A Side Hustle pint at the microbrewery in Abu Dhabi. (Credit: Instagram via @jrjimenezg)
After decades of restrictions on alcohol production, it is now possible to drink beer made in the UAE.
The country’s first local brewery opened its doors on Saturday, Dec. 23 in Abu Dhabi, marking another step in the strategy to attract foreigners. Located in the Galleria al-Maryah Island shopping mall, Craft by Side Hustle is a microbrewery and gourmet pub that "delivers innovative and authentic experiences worthy of the UAE's high standards," Chad McGehee, co-founder of Side Hustle Brews and Spirits, told local media.
"As founders of the local craft group, we recognize the responsibility we have and are both honored and delighted to open Abu Dhabi's first craft microbrewery," McGehee continued.
Access to alcohol has been restricted in the UAE since the country was established in 1971. At the end of 2020, alcohol consumption was decriminalized in all the emirates except Sharjah, where alcohol remains banned. Despite this, each of the emirates maintains varying degrees of restrictions.
Things are particularly flexible in Dubai, where 90 percent of the population is foreign and alcohol is widely available in hotels, restaurants, bars, clubs, and stores. In January 2023, the emirate suspended its 30 percent tax on alcoholic sales. Additionally, the individual license required for non-Muslim residents over 21 to drink, transport and store alcohol at home, which previously cost around $73, was made free. However, the measures, which have been seen as an appeal to expatriates and Western tourists, are subject to a one-year trial period.
Relaxation of rules
In Abu Dhabi, the inauguration of a brewery came as a surprise, since unlike in Dubai, the sale of alcohol was generally limited to bars and restaurants inside hotels, as well as private clubs and select stores.
But in 2021, a change in law permitted licensees for alcohol production, making Craft by Side Hustle a possibility. Abu Dhabi had already relaxed its rules the previous year, when it abolished the license requirement for alcohol consumption and purchase at the end of September 2020. The measure was aimed at consumers aged 21+ and prohibited resale of alcohol.
Official statements did not specify whether or not Muslims would be allowed to buy alcohol.
Permitting the opening of a brewery in Abu Dhabi can be seen in the wider context of competition between Gulf countries to attract tourists and expatriates — something that has become especially pronounced between the UAE and Saudi Arabia, which is implementing major economic and social reforms as part of its Vision 2030 program.
For several years now, the two petro-monarchies gone head-to-head with their announcements of sky-high salaries, exclusive economic zones, tax breaks and impressive cultural projects.
In a more coercive move, Riyadh is attempting to rival Dubai by requiring international companies to set up their regional headquarters in Riyadh by Jan. 1, 2024, or risk being barred from government contracts.
The measure was confirmed by Saudi Arabia’s economy and finance ministries in October. On Tuesday, Riyadh approved the regulation of contracts for foreign companies, without divulging details.
Casinos and gambling
The UAE remains one step ahead of Saudi Arabia when it comes to certain establishments. In September, the country announced the creation of an authority to regulate gambling, paving the way for the possible legalization of casinos to attract even more tourists.
According to Bloomberg, this decision could generate nearly $7 billion in annual revenues. In 2022, the major American casino group Wynn Resorts announced plans to build a huge resort, 4 percent dedicated to gaming, in the emirate of Ras al-Khayma. The establishment, which will be the first of its kind in the country, is scheduled to open in 2027.
While alcohol and gambling remain strictly forbidden in Saudi Arabia for the time being, the first signs of change can already be seen in some of Riyadh's major hotels, where huge billboards conceal months-long construction work on new bars. Rumor has it that their opening will coincide with the announcement of the legalization of alcohol throughout the Kingdom. All that remains is to await the royal decree that will set this decision in stone.
This article was originally published in French in L'Orient-Le Jour.