The UAE to establish the first alcohol production factory in the Gulf

The UAE is set to host the first alcohol production facility in the Gulf, as revealed in a recent report by the global news agency Reuters, which also disclosed that the country has issued its first-ever license for a gambling operator.

Reuters highlighted that Heineken, the German brewing giant, intends to construct the first large-scale beer factory in the Gulf region in Dubai, a city that draws millions of tourists annually with its high-end bars and restaurants.

The joint venture, Sirocco, formed between Heineken and Maritime Mercantile International (affiliated with the Dubai government), has unveiled plans to build a beer plant in Dubai, where alcohol consumption has been allowed for a long time.

The company indicated that construction will begin before the end of 2025, and the beer factory is expected to be operational by 2027. All required licenses and approvals have reportedly been obtained.

In recent years, the UAE has relaxed regulations concerning alcohol purchases in stores across Dubai and other emirates.

Abu Dhabi, the UAE’s capital and largest emirate, has also eased restrictions by opening at least one bar serving locally brewed beer.

In early October, Wynn Resorts, the operator of hotels and casinos, announced that it had secured the UAE’s first license for a gambling and commercial gaming operator, granted by the country’s General Authority for Regulating Commercial Gaming.

The Las Vegas-based company revealed plans to develop a luxury resort on Marjan Island in Ras Al Khaimah, which would facilitate the official legalization of gambling in the UAE.

The resort, currently under construction, is a joint venture between Wynn Resorts’ subsidiaries, Marjan, and RAK Hospitality Holding.

In a significant move, the UAE recently formed a federal body to regulate gambling and appointed experienced US industry professionals to lead it, ending years of speculation about whether the country would allow gambling, which has long been illegal in the conservative Gulf region.

These developments, which mark a shift towards gambling legalization, come amid growing economic competition in the Gulf, particularly with Saudi Arabia.

Last month, the UAE introduced a range of legal reforms aimed at bolstering its position as a global trade, tourism, and financial hub.

In late July, Bloomberg reported that the UAE had taken its first official step toward legalizing gambling by issuing a lottery license, following its approval to establish the first casinos in the Gulf region.

The issuance of the first lottery license in the UAE signals the potential future legalization of casinos and other forms of controversial gaming.

The General Authority for Regulating Commercial Gaming announced that “The Gym LLC” will manage the “Emirati Lottery.” Although the launch date and format have not been confirmed, this represents a key move toward creating a regulatory framework for commercial gaming in the UAE.

With gambling being prohibited under Islamic law, this represents a significant departure for the UAE, where Sharia law has been the foundation of its legal system. The creation of a federal authority to regulate gambling followed the announcement of Wynn Resorts’ $3.9 billion gaming resort in Ras Al Khaimah.

The agency emphasized that gambling legalization could attract greater tourism and investment from China and generate revenues equating to approximately 1.3% of the UAE’s GDP, or around $6.6 billion, surpassing Singapore’s earnings.

Facing growing competition from neighboring nations like Saudi Arabia and Qatar, Dubai has implemented several reforms to maintain its status as the region’s top tourism and business destination. These reforms include the introduction of long-term visas and the allowance of unmarried couples to cohabit.

Gaming companies can now apply to operate across all seven emirates, with Abu Dhabi and Ras Al Khaimah expected to offer casinos before Dubai, which has delayed its immediate plans to legalize gambling.

The UAE is increasingly attracting major players from the gambling industry, edging closer to officially permitting gambling, setting a Gulf-wide precedent.

In September, the UAE established the “General Authority for Regulating Commercial Gaming,” tasked with creating a regulatory framework for gaming and lotteries, as reported by official media in Abu Dhabi.