Heineken to launch Gulf’s first large-scale brewery in Dubai
Dubai is preparing to host the Gulf's first large-scale brewery, as a joint venture with Heineken NV plans to create popular beer brands in the city.This is a remarkable move in an area that has long had tight alcohol sales and usage laws.
Sirocco, a joint venture between Heineken NV and Dubai-based Maritime and Mercantile International, revealed intentions to begin building on the brewery late next year, having already obtained the necessary permissions. Bloomberg estimates that the project will be completed by 2027.
Dubai, the Middle East's commercial and tourism powerhouse, is one of the area's most cosmopolitan cities.
Officials allowed alcohol drinking and sales more than two decades ago, with limits gradually loosening to suit an increase in tourists.
The city has eliminated a 30% sales tax on alcohol and liquor license fees, but sales to Muslims are still limited.
Dubai, in the United Arab Emirates, is one of the federation's seven sheikhdoms. The UAE has increasingly eased alcohol prohibitions, with major developments including Las Vegas-based Wynn Ltd. constructing the region's first casino in Ras Al Khaimah and Abu Dhabi issuing a license for on-site beer manufacturing at a restaurant last year.
The projected brewery in Dubai will produce popular brands such as Heineken, Kingfisher, Amstel, and Birra Moretti.
The company also intends to increase its workforce from 60 to 190 full-time employees.
Sirocco, which has been supplying alcohol in the UAE for nearly 20 years, says that local production would assist grow output to satisfy increased demand in a region that welcomes over 17 million tourists each year.
The opening of the new brewery exemplifies the Gulf's efforts to liberalize their businesses while adhering to conservative social values. As Middle Eastern governments want to minimize their reliance on oil, Dubai maintains its efforts to attract visitors and expats as part of its economic diversification strategy.
Leave A Comment