The UAE city will also stop charging for personal alcohol licenses, a document residents must obtain before drinking in their own homes.
The move -which came into effect last weekend - comes amid Dubai’s trend of liberalising laws, such as allowing drink to be sold in the daytime during the holy month of Ramadan and allowing home delivery during the height of COVID-19.
This is believed to be because of the growing levels of competition for tourist interest due to the increasing amount of hotspots for vacations cropping up in the area like Qatar, who recently hosted the FIFA World Cup tournament.
The two companies that distribute swally - which you must be 21 to consume or store at home - across the city, Maritime + Mercantile International and African + Eastern welcomed the decision.
Tyrone Reid, a spokesperson for MMI told the Associated Press: "These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE."
The same company wrote on Instagram: “With the removal of 30 per cent municipality tax and a free alcohol licence, buying your favourite drinks is now easier and cheaper than ever.”
Monica Malik, Abu Dhabi Commercial Bank's chief economist told the FT:“The cut should further support the tourism and hospitality sectors, after the strong recovery from the pandemic,”