Export Market Guide - United Arab Emirates
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All regulatory information for exporting wine to UAE, including the regulatory environment, duties and taxes, and permitted additives.
Unless an exemption has been granted by Wine Australia, grape products exported from Australia must comply with the Food Standards Code. Accordingly, the labelling and wine standards information in Wine Australia’s Export Market Guides should be read in conjunction with Wine Australia’s Licensing and Compliance Guide which contains the requirements of the Food Standards Code and applicable exemptions.
The United Arab Emirates is a federation of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Um al-Qaiwain, Ras al-Khaimah and Fujairah, formed in 1971. The UAE is in the Middle East on the Arabian Peninsula. Since unification, the UAE has transformed from an impoverished region with an economy based on pearl production, fishing, agriculture, and herding, into a modern, economically flourishing state with a standard of living amongst the top nations in the world. The region has vast oil resources and the economy has been built on the world demand for oil. The UAE has the world's fourth largest conventional oil reserves and seventh largest natural gas reserves. It is the Middle East's second largest economy, after Saudi Arabia.
Up to 88 per cent of the population are non-nationals. Many immigrants come from India and other Asian countries, attracted by the high wages and employment opportunities.
The UAE is a member of the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. In 2003, the GCC implemented a Customs Union to reduce trade barriers and remove the import tariff between GCC member states. Alcohol is one of the few products not covered by this common tariff rate as it is a sensitive item and prohibited in some GCC member states. Australian wine and beer is well recognised and prominent in the market. Alcohol is banned entirely in the emirate of Sharjah.
The UAE and Australia has initiated negotiations for a bilateral Free Trade Agreement. Bilateral relations between the UAE and Australia are friendly and growing.
Although a strict adherent to Islam, the UAE makes efforts to balance the western and eastern lifestyles in order to minimise any cultural clashes. Most Emiratis are of the Islamic faith and consequently, the consumption of alcohol is not permitted by them. Alcohol is usually consumed by expatriates and tourists but is strictly controlled. Tourism and religion have the greatest impact on the alcoholic drinks market. Up to ten million tourists pass through Dubai alone each year. The UAE government controls the number of suppliers and retailers of alcoholic drinks and as a result, on-trade channels dominate the market. The majority of sales occur in hotels, bars, pubs, nightclubs and restaurants.
Regulatory environment
As a member of the GCC the UAE adheres to its laws and regulations relating to common external tariff rates and importing requirements. Sensitive items may be exempted from GCC laws and regulations. Alcohol is such an item and consequently the UAE controls the levels of taxation internally. The Emirates Authority for Standardisation and Metrology (ESMA) is the responsible body, in cooperation with other members of the Gulf Standards Organisation (GSO), for developing or adopting all standards. The Ministry of Climate Change and Environment is responsible for establishing and enforcing food safety regulations and laws based on recommendations made by the GSO and the National Food Safety Committee (NFSC) on food related matters.
The importation of alcohol is strictly controlled. There are no specific labelling or wine composition regulations in the UAE.
Alcohol laws
The UAE government has reportedly made significant changes to its legal system including the decriminalisation of the consumption of alcohol beverages. Individuals who sell alcohol beverages in authorised areas without a licence will no longer be prosecuted. Certain regulations remain unchanged, including that alcohol beverages may only be consumed privately or in licensed public places by individuals at least 21 years of age, and anyone selling to someone underage will be punished.
The amendments also gave each emirate ‘the right to issue legislation regulating this issue’. For example, restrictions on alcohol have been updated in Abu Dhabi to eliminate ‘dry days’ and allow alcohol consumption during ‘all religious occasions, throughout the year and in upcoming years.’