In a landmark move, Abu Dhabi is set to open its first legally licensed commercial brewery this month, marking a significant shift in the Gulf region’s approach to alcohol production. The restaurant Craft by Side Hustle has been granted a unique license, allowing it to brew and serve beer on-site, an initiative born out of regulatory changes in Abu Dhabi in 2021. These changes permit licensed establishments to ferment alcoholic beverages for on-site consumption.
Craft by Side Hustle’s debut is part of a broader trend in the United Arab Emirates (UAE) and neighboring Gulf countries to liberalize socially conservative laws. This shift aims to diversify their economies beyond oil and appeal to international visitors and expatriates. The restaurant will offer its unique beers, paired with Southern, Louisiana-style cuisine, in a 250-seat venue. It represents a collaborative venture by Balmaghie Beverage Group and other investors, with a soft opening scheduled for this month and a grand opening planned for February.
The inspiration behind Craft by Side Hustle traces back to Chad McGehee, CEO of Balmaghie Beverage Group, who relocated to the UAE about 14 years ago. His disappointment with the limited beer options in the country led to the co-founding of Balmaghie in 2018. McGehee’s vision was clear: “We started this company so that we can drink better here.” The goal was to create beers that appealed not just to them but also to the expatriate community in the Gulf.
Balmaghie initially set up beer production facilities and distilleries for gin and whisky in Pennsylvania, USA, focusing on flavors that resonate with expatriates: pale ales, Czech and German-style Pilsners, stouts, and lagers. Side Hustle, a brand under Balmaghie, began selling beer in the UAE in 2019 and spirits more recently. Their product range includes hard seltzers, which remain popular in the UAE despite declining interest in the United States. The brand’s identity is closely linked with the UAE, featuring a camel mascot on its packaging.
In the UAE, alcohol laws are primarily regulated at the emirate level rather than federally. While Dubai has been known for its liberal stance, allowing alcohol in select bars and restaurants, the production of alcohol is a significant development for the Gulf region. This step is considered a response to growing economic and tourism sectors and the demand for a lifestyle familiar to expatriates.
Saudi Arabia, with its grand ambitions as a global tourist hotspot, still prohibits alcohol but might introduce concessions in the future. Other UAE emirates, like Ras el Khaimah, are also progressively loosening Islamic laws, with prospects of legalizing gambling.
Craft breweries are not entirely new in the Middle East, with existing establishments in Lebanon, Jordan, and Egypt. However, locally brewed beers in the UAE have been a small market segment until now. The Craft microbrewery, located on Abu Dhabi’s Al Maryah Island, a part of the luxurious The Galleria complex, is set to change this landscape. The brewpub’s design includes multiple dining areas, with one offering a direct view of the brewing equipment. The brewery aims to produce about 25,000 pints monthly, with plans to develop 75 different beer types over the next year.
This initiative by Craft by Side Hustle not only diversifies the culinary and beverage offerings in Abu Dhabi but also represents a progressive step in the region’s approach to alcohol consumption and production, aligning with global trends and catering to a diverse international community.
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