(Bloomberg) -- Dubai is poised to get the Gulf’s first large-scale brewery as a Heineken NV joint venture plans to start producing popular beer brands in the emirate, a landmark move for a region that’s long had strict restrictions around the sale and consumption of alcohol.
Sirocco, a joint venture of Heineken NV and Dubai-based Maritime and Mercantile International, will start building the brewery late next year and has secured all necessary permits, the company said a statement. Construction is set for completion in 2027.
Dubai is the Middle East’s business and tourism hub, and among the region’s most cosmopolitan cities. Officials first allowed alcohol consumption and sale over two decades ago and rules have since been gradually loosened amid a surge in tourism. The city also recently made it easier for residents to buy alcohol, scrapping a 30% sales tax and a liquor license fee even though sales to Muslims remain restricted.
The new brewery offers a look at the steps the Gulf’s rulers are taking to open their economies in a Muslim region with conservative social norms. Governments in the Middle East are increasingly trying to cut their reliance on oil, and in Dubai there’s been a persistent push to draw both tourists and expats.
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Dubai is part of the United Arab Emirates, which includes seven sheikhdoms. Las Vegas-based Wynn Ltd. is building the region’s first casino in the emirate of Ras Al Khaimah, while UAE capital Abu Dhabi last year granted a license to a restaurant to sell beer on tap brewed on the premises.
The brewery in Dubai will produce brands including Heineken, Kingfisher, Amstel and Birra Moretti in Dubai and the company plans to expand its workforce to 190 full time employees from 60 currently.
Sirocco, which has been supplying alcohol in the UAE for nearly 20 years, says local production will boost output to meet growing demand in a market where more than 17 million tourists arrive each year. It’ll also provide a “fresher beer experience,” the firm’s general manager, Georgios Polymenakos, wrote in the statement.
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Dubai had 10.6 million tourists in the first half of the year, an 8% increase from the year earlier period, government data show. The city welcomed 17.3 million visitors in 2023 amid a strong recovery after the pandemic hit. About 20% of tourists came from western Europe this year.
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