Standfirst: Once almost entirely dependent on imported beer, the UAE is developing into a far more sophisticated brewing market. Strong volume growth, the arrival of locally brewed craft beer and Heineken’s planned large-scale Dubai brewery are changing the shape of one of the Gulf’s most important beer markets.
For decades, the UAE beer market had a simple structure: international brands arrived by container, licensed distributors moved them into hotels, bars and specialist retailers, and consumers largely chose between familiar imported names.
That model is beginning to change.
Beer volumes in the UAE grew by an estimated 10% in 2025 to around 197 million litres, according to Euromonitor International — an impressive performance considering the reinstatement of a 30% alcohol tax in Dubai and Abu Dhabi. Retailers absorbed much of the increase on mainstream beer, helping protect demand while higher-priced products experienced greater pressure.
For international brewers, the UAE is increasingly looking less like a specialist export destination and more like a fully developed beer market in its own right.
The Giants Still Rule
The market remains highly concentrated.
Anheuser-Busch InBev and Heineken each accounted for approximately 29% of UAE beer volume in 2025, giving the two brewing groups a combined share of more than 58%.
That dominance reflects the strength of globally recognised beer brands across the UAE’s hotels, bars, restaurants, specialist alcohol retailers and tourism economy.
But what happens next could be more interesting.
The country is beginning to make beer rather than simply import it.
Beer Made in Abu Dhabi
One of the biggest symbolic changes came with the arrival of CRAFT by Side Hustle on Abu Dhabi’s Al Maryah Island.
The venue officially opened in 2024 as the UAE’s first microbrewery and gastropub, producing beer on site rather than importing finished product from overseas. Its rotating range has included IPAs, Belgian-style wheat beers and other small-batch creations.
The significance goes beyond craft beer.
For the first time, UAE consumers could sit inside a commercial venue and drink beer brewed locally in the Emirates.
That is a major psychological shift for a market historically associated almost entirely with imported alcohol.
And craft brewing may only be the beginning.
Heineken Takes Local Production to Another Level
A much bigger development is coming in Dubai.
Sirocco — the joint venture between Heineken and Maritime and Mercantile International — announced plans for a major commercial brewery that is expected to be completed in 2027.
The facility is intended to produce brands including Heineken, Amstel, Birra Moretti and Kingfisher locally, while increasing Sirocco’s workforce from around 60 to approximately 190 employees.
For the UAE beer industry, that represents a significant transition.
The economics of brewing locally are different from importing every case.
Local production can potentially shorten supply chains, improve freshness, increase responsiveness to demand and reduce some of the logistical complexity associated with imported beer.
It also signals something perhaps even more important: one of the world’s largest brewers clearly believes the UAE has enough long-term demand to justify major production investment.
Why the UAE?
Beer benefits from several characteristics of the UAE economy.
A large international resident population, high disposable incomes, a huge hospitality sector and millions of tourists create drinking occasions that are unusually diverse for the region.
Dubai alone has developed one of the world’s most international hospitality markets.
At the same time, the consumer offer is broadening.
Premium beer, craft products, rapid chilled delivery and alcohol-free alternatives are all becoming more visible alongside traditional mainstream lager. Euromonitor expects younger adult expatriates and continued innovation to support further development of the wider alcoholic drinks market.
For breweries and exporters, however, the opportunity comes with serious competition.
The UAE is already populated by many of the world’s strongest beer brands, backed by experienced local distributors and powerful hospitality relationships.
New entrants therefore need more than availability.
They need distinctive positioning, the right distributor, disciplined pricing and a reason for consumers to choose them.
The UAE beer market is no longer simply a place where international breweries ship product.
Craft beer is now being brewed in Abu Dhabi. Large-scale brewing is coming to Dubai. Global giants are increasing their commitment.
The next chapter of Gulf beer is beginning to be written inside the UAE itself.
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