Detained in Dubai said Jamie Harron, 27, was told his case had been dismissed following an intervention by the Gulf city state's emir. He said he had simply been trying to avoid bumping into the man and spilling his drink.
At the Dubai Court of Misdemeanours, Harron had denied charges of consuming alcohol without a license and committing a publicly indecent act by flagging his middle finger.
On Sunday, Mr Harron was sentenced to three months in prison for drinking alcohol but the case against him is believed to...
The man who initially complained about Harron withdrew the complaint but prosecutors pressed on with the case.
Radha Stirling, CEO of Detained in Dubai, said Jamie was contacted by police last night to say his sentence has been overturned on order from the Sheikh who was anxious that the high profile case could affect tourism in the UAE.
Since the ordeal began, Harron has lost his job and claims to have spent more than $39,000 (AED143,000) in legal fees and expenses.
In a statement, Detained in Dubai said that Harron was "angry, disappointed and dreads what may happen next".
"His family was unable to visit him during this critical time because they faced a very real risk of imprisonment themselves under the UAE's cybercrime laws which forbid criticism of the government", said Detained in Dubai's chief executive, Radha Stirling. He has already suffered tremendously as a result of these allegations, and now faces the likelihood of incarceration.
According to their tweet, Harron's legal team will appeal the decision.
"Key witnesses to the incident were not called upon to testify to discredit the allegations".