The UAE Pubs, Bars, Clubs & Lounges (PBCL) market is expected to be driven by high disposable income, increased tourist numbers, , and changing consumer preferences have all contributed to the expansion of the country’s market for pubs, bars, clubs, and lounges.
The diaspora is made up of six Northern Emirates, including Dubai, and Abu Dhabi, which has about 15% of its residents. 10% of Indians are dependent on family members, even though the majority of citizens are employed.
Earlier drinking alcohol was not permissible in the United Arab Emirates but now tourists and non-Muslims can drink alcohol but only in licensed places and indoors. In restaurants, hotels, and bars connected to hotels with licenses, tourists are allowed to consume alcohol. However, drinking in public is prohibited and illegal. Dubai is quite severe when it comes to intoxication in public and has no tolerance for drunk driving.
Despite its strict penalties, Dubai recognizes the occasional desire for a decent cocktail among its tourists and non-Muslim citizens. Hotel and restaurant wine, beer, and cocktail programs, featuring cutting-edge mixology, staggering wine lists, and carefully chosen liquor selections. The four- and five-star hotels take immense satisfaction in hiring some of the most renowned sommeliers, bartenders, and champagne in the world.
Reduction in Tax on Alcohol to Cater the Market Growth
Dubai Municipality has removed the 30% tax on alcohol sales as of January 1, 2023, to accommodate the growing tourist and expat population.
Increasing Number of Bars and Lounges to Boost Market Growth
Traditional bars have remained popular despite the undeniable rise in many live entertainment and dining establishments opening up across the Middle East in recent years. The number of bars in the country has increased due to the rising tourist population and shifting consumer preferences about drinking and partying. For instance, a new bar in Dubai was inaugurated in 2022 by SLS Dubai Hotel & Residences. With Latin music, Cuban-inspired cocktails, and cigars, the city is getting a taste of South America due to the new bar and lounge that has opened at the opulent hotel. As it is located on the hotel's 74th floor, Smoke and Mirrors is modeled after speakeasies from the 1920s. Owing to the sleek brown leather sofas, dark wood-paneled walls, and shelves holding books and bottles, the opulent furnishings resemble a cross between a gentleman's club and an antique library.
Lounges Seasoned with AI and Technology to Fuel the Market
To increase their presence in the market, many companies are establishing their pubs, bars, clubs & lounges which are enabled with AI (Artificial Intelligence) and technology to help their consumers. For instance, UAE’s first luxury experiential lounge, “Illuminati” launched at V Habtoor Hotel. With aspects present in each offering, Illuminati has turned it into a mainstream topic of interest. The 3D-mapped walls will change every day to fit different themes, while the LED-adorned walls in the dining areas are intended to act as fascinating backdrops. AI-backed touchscreen tables with menu, ordering, and payment options will be found at in VIP pods to provide a convenient and hassle-free dining experience. The setting is intended to arouse a sense of intrigue and mystery. Other distinctive elements include the exclusive "Illuminati Society" club, which is entirely password-protected and opens to exhilarating wall-to-wall 360-degree and 3D-mapped immersive environments.
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Market Segmentation
The Pubs, Bars, Clubs & Lounges (PBCL) market is segmented based on ownership, chained outlets, and region. Based on ownership, the market is further divided into standalone & chained. Based on chained outlets, the market is divided into international & domestic. Based on the region, the market is further segmented into Dubai, Abu Dhabi, Ajman, and the Rest of UAE.
Company Profiles
BLU, Zero Gravity, 1-OAK, Vault, Biggles Pub, Bliss Lounge, Bla Bla, At.Mosphere, Nargui Five, Soho Garden DXB are