The well-known oil-rich state has announced that it will also stop charging for personal alcohol licenses.
This means Dubai has scrapped its 30 percent alcohol tax in an attempt to make the city more attractive to foreigners, while in the competition for the tourist market.
In recent times, Dubai has been relaxing laws for some time, permitting the sale of alcohol in daylight during Ramadan and allowing its home delivery during the pandemic.
The two main companies which distribute alcohol in Dubai, Maritime and Mercantile International (MMI), and African & Eastern, have disclosed that they would reflect the cut in tax for consumers.
However, it is not yet clear if the move which took effect on Sunday, December 1 will be permanent.