A monorail passes above the skyline of Dubai, United Arab Emirates, in 2019. The latest move will leave Dubai better-positioned to cater to wider swathes of the market. That's prompted many residents to drive to other emirates like Umm Al Quwain, about 50 miles from Dubai, where prices are much cheaper. Dubai's other state-linked distributor, African & Eastern, has already cut prices to reflect the removal of the sales tax, it said in an Instagram post. They'll still be needed because the United Arab Emirates restricts sales of alcohol to Muslims. Still, the city sometimes compares unfavorably to other hubs on cost and hoteliers have lobbied for a reduction in levies. A 5% value added tax will continue to be levied on alcohol sales. The country's government is planning to attract millions more in the coming decades and authorities have introduced a raft of measures aimed at loosening social restrictions. It also eased immigration rules, including introducing 'golden visas' that allow foreigners to work, live and study without needing a sponsor in the country. In other regional countries including Qatar and Oman, it is heavily taxed.