The Australian beer and wine giant Foster's has expanded into the Middle East by acquiring a Dubai-based marketing and distribution group.

Foster's Brewing International said it had bought a 40% stake in African & Eastern's operations in Dubai and Oman.

No price was given but the company said it was less than $18m (�11.3m).

The acquisition gives Foster's its first foothold in the Gulf area even though its beer has been sold there for decades.

"It also presents some exciting opportunities to further expand Foster's Group's Beringer Blass Wine Estates portfolio in the region, as well as introduce Continental Spirits brands," said Richard Scully, Foster's Brewing International managing director.

Punishing drinkers

Africa & Eastern, known as a+e, supplies mainly Dubai, a regional financial centre and tourist destination.

It is home to thousands of foreigners who are allowed to drink alcohol in the local hotels and restaurants.

Alcohol is banned for Muslim residents, who face public floggings if caught drinking.

Foster's sells more than 100 million cases of beer a year in 155 countries.

Its shares closed four cents lower at A$4.53 on Tuesday despite assuring investors the purchase would boost shareholder profits in the next 12 months.