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The gastropub Craft by Side Hustle will open in Abu Dhabi this month, legally brewing beer using the tubs seen here for the first time in the country’s history. Photo: Side Hustle

A first for the UAE: brewery to make and sell beer in Abu Dhabi, a big change from when locally produced alcohol was illegal

  • Abu Dhabi in the United Arab Emirates has granted a licence to restaurant Craft by Side Hustle to sell on tap beer that has been brewed on site
  • Legal production of alcohol is a big step for the Gulf, a region where several countries still ban outright the sale, consumption and possession of alcohol
Asia travel

A commercial beer brewery will open in Abu Dhabi this month, becoming the first company to legally make alcohol in the Gulf region.

The emirate has granted a licence to the restaurant Craft by Side Hustle to sell on tap beer that has been brewed on site. You can already buy Side Hustle’s imported beer and spirits in United Arab Emirates liquor stores, but all packaged products will still have to be manufactured abroad under the new regulations.

The brewery is the first to open under a little-noticed rule change published in Abu Dhabi in 2021, which allows licence holders to ferment alcoholic beverages for consumption on site.

It is the latest in a series of moves to loosen socially conservative laws in the UAE and the surrounding Gulf region, as countries open up their economies and focus on industries other than oil.

A little-noticed rule change published in Abu Dhabi in 2021 allows licence holders to ferment alcoholic beverages for consumption on site. Photo: AFP

Craft by Side Hustle will serve its own beers alongside Southern, Louisiana-style food. The 250-seat spot is being opened by the owners of Balmaghie Beverage Group and other investors. A soft opening this month will be followed in February by a planned grand opening.

Balmaghie’s chief executive officer, Chad McGehee, moved to the UAE about 14 years ago as an employee of US technology corporation IBM, and co-founded Balmaghie in 2018. He bonded with his now-business partners over their disappointment with the country’s paltry beer options.

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“We started this company so that we can drink better here,” says McGehee, a native of the US state of Louisiana. “Regardless of the size of the market, we legitimately made this beer for us to drink, and then it just kept growing.”

The company opened beer-making facilities, as well as gin and whisky distilleries, in the US state of Pennsylvania, and worked on flavours they thought would appeal to expatriates in the Gulf: pale ales, Czech and German-style Pilsners, stouts and lagers.
The company began selling beer in the UAE in 2019, and spirits more recently. Side Hustle also makes hard seltzers, which McGehee says are popular in the UAE even as the hard seltzer buzz fades in the United States.
Abu Dhabi’s Al Maryah Island is one of the many natural islands that make up the heart of the emirate. Photo: Shutterstock

The brand’s identity is explicitly linked with the UAE, McGehee says: Side Hustle’s camel mascot appears on its cans and bottles, which are also sold in the US and other countries. Before the Covid-19 pandemic, the company held a craft beer festival in Abu Dhabi called Hustle Fest, featuring dozens of beers from US brewers.

In the UAE, most laws governing alcohol are set by each emirate, not at the federal level. Within recent memory, in the relatively liberal emirate of Dubai, alcohol could be served legally only at a few bars and restaurants, usually as part of a hotel; it was banned in daytime hours during the holy month of Ramadan.

Now, however, retail stores selling beer, wine and hard liquor are commonplace, and free-standing restaurants and pubs with alcohol licences exist throughout Dubai.

A craft beer festival was held in Abu Dhabi before the Covid-19 pandemic and featured dozens of beers from US brewers. Photo: Hustle Fest

Still, the production of alcohol is a big step for the Gulf, a region where several countries still ban the sale, consumption and possession of alcoholic drinks. As the countries’ economies and tourism sectors grow, so does the demand for a lifestyle that expats are used to in their home countries – or in places such as Singapore or Hong Kong.

Saudi Arabia, which has major ambitions to become a global tourist destination, still does not allow alcohol but is widely expected to make some concessions to attract visitors.

Although Dubai is the glitzier destination and attracts more tourists, other UAE emirates have taken the lead on loosening other Islamic laws: Ras el Khaimah, to Dubai’s north, for example, looks poised to be the first emirate to allow gambling.

Ras el Khaimah looks poised to be the first emirate to allow gambling. Photo: Shutterstock

Craft breweries have opened in places in the Middle East such as Lebanon, Jordan and Egypt, and craft beer is imported into the UAE. But locally brewed beers are still a very small part of the market.

The Craft microbrewery will be on Abu Dhabi’s Al Maryah Island, one of the many natural islands that make up the heart of the emirate. It is part of a luxury retail, dining and entertainment complex called The Galleria.

Craft’s neighbours will include international high-end chain restaurants Zuma, Em Sherif Cafe and Coya, and Michelin-star 99 Sushi Bar. Five-star hotels Four Seasons and Rosewood are also on the island.

The Galleria is a luxury retail, dining and entertainment complex in the UAE. The Craft microbrewery will serve the first beer legally brewed in the emirate there. Photo: Shutterstock

The brewpub is opening in an expansive location that has several dining areas. One space has a direct view of the beer brewing equipment, such as a mash tun and tubs. Menus above the bars show what brews are available that day.

Craft will also serve cocktails, some made from Side Hustle spirits.

The brewery has the capacity to make about 25,000 pints of beer a month. The brewing time for most beers will be about three weeks. Hops and other ingredients will be imported, for now.

The goal is to make 75 different kinds of beer over the next year, though only five or 10 might be available at any given time.

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