Dubai wine market thrives despite higher taxes and strict regulations

2025-08-07

Tourism, expatriate demand, and global investment drive rapid growth in fine wine sales and variety across the city

Dubai’s wine market is showing strong signs of growth despite the reintroduction of a 30% alcohol tax earlier this year, a move that many thought would slow the city’s expanding wine scene. Arturo Scamardella, head sommelier at Dinner by Heston Blumenthal and recently named Sommelier of the Year by Gault&Millau’s UAE Guide 2025, says Dubai’s wine market is not only surviving but evolving rapidly.

Scamardella, who previously worked in London at renowned establishments like the Ritz and Mandarin Oriental Hotel Group, moved to Dubai to help launch Dinner by Heston Blumenthal at Atlantis The Royal. The restaurant has quickly become known for its extensive wine list, which now features over 1,600 labels and a cellar of 6,000 bottles. Rare vintages such as Screaming Eagle from Napa Valley are among the highlights. The restaurant’s focus on British classics with a modern twist has earned it both a Michelin star and the Wine Offering of the Year award in 2023.

According to Scamardella, the process of building the wine list is meticulous. He meets with producers and samples new vintages with suppliers before making selections. The list emphasizes Italian, French, and Spanish wines, but also includes British sparkling wines like Nyetimber to reflect the restaurant’s roots. Each wine is chosen not just for its taste but for its story, with historical facts about each region included on the menu.

Dubai welcomed more than 9.88 million international visitors in the first half of 2025, a 6% increase from the same period last year. This influx of tourists, many from Western countries, has fueled demand for fine wines and contributed to the city’s growing reputation as a global culinary destination. Sales of fine wine in Dubai, Abu Dhabi, and Oman have nearly doubled since the pandemic and are expected to surpass $1 billion in value this year, according to data from ISWR.

International wine firms are taking notice. London-based Cru Wines recently launched operations in Dubai, and other producers are eyeing opportunities in the region. Auction house Bonhams has also highlighted the Middle East as an important market for fine wine. Local sommeliers report that their suppliers’ portfolios have expanded significantly to meet rising demand.

Despite strict regulations—alcohol was only decriminalized in Dubai in 2020 and public drinking remains prohibited—the city’s wine scene continues to grow. The reinstatement of the alcohol tax was seen as a potential obstacle, but Scamardella believes that steady tourism and a large expatriate community are driving continued expansion. He describes Dubai as a “melting pot” where people from England, France, Italy, and beyond bring their own tastes and traditions.

Visitors are often surprised by the quality and variety of wines available in Dubai. Scamardella notes that his restaurant’s cellar rivals those found in London. While classic regions like Burgundy and Bordeaux remain popular among luxury clientele, there is growing interest in New World wines from California, Australia, and China. Residents are also exploring lesser-known grape varieties such as Fiano.

The pace of change is rapid. New venues open regularly, each bringing new trends and preferences to the market. Scamardella says keeping up with these changes is one of his biggest challenges as a sommelier.

He attributes much of Dubai’s wine market growth to an influx of professionals from Europe, South Africa, Australia, and other regions who bring their expertise with them. Technology is also playing a role in shaping consumer behavior, though Scamardella believes that personal interaction with knowledgeable sommeliers remains irreplaceable.

Looking ahead, Scamardella expects further growth in Dubai’s wine scene. He predicts an increase in small producers as well as more organic and biodynamic wines entering the market. With more winemakers visiting Dubai and sharing their products directly with consumers, he sees no sign that the city’s appetite for fine wine will slow down anytime soon.