Dubai is set to host the Gulf’s first large-scale brewery as a joint venture involving Heineken NV prepares to produce popular beer brands in the emirate.
This marks a significant shift in a region traditionally known for its strict regulations on alcohol sales and consumption.
Sirocco, a partnership between Heineken NV and Dubai-based Maritime and Mercantile International, announced plans to begin construction of the brewery late next year, having already secured the required permits. The project is expected to be completed by 2027, according to Bloomberg.
Dubai, the Middle East’s business and tourism hub, is among the region’s most cosmopolitan cities.
Officials permitted alcohol consumption and sales over two decades ago, with regulations gradually easing to accommodate a surge in tourism.
Recently, the city eliminated a 30% sales tax on alcohol and liquor license fees, though sales to Muslims remain restricted.
Dubai, part of the United Arab Emirates, is one of seven sheikhdoms in the federation. The UAE has been gradually loosening restrictions on alcohol, with notable developments such as Las Vegas-based Wynn Ltd. building the region’s first casino in Ras Al Khaimah and Abu Dhabi granting a license for on-site beer brewing at a restaurant last year.
The planned brewery in Dubai will produce popular brands like Heineken, Kingfisher, Amstel, and Birra Moretti.
The company also aims to expand its workforce from 60 to 190 full-time employees.
Sirocco, which has been supplying alcohol in the UAE for nearly 20 years, states that local production will help increase output to meet rising demand in a market that attracts over 17 million tourists annually.
The establishment of the new brewery highlights the Gulf’s efforts to liberalize their economies while navigating conservative social norms. With Middle Eastern governments aiming to reduce their dependence on oil, Dubai continues its push to attract tourists and expatriates as part of its economic diversification strategy.
