Aragh Sagi (or Araq Sagi) literally means "Dog distillate" is a type of distilled alcoholic beverage in Iran which contains at least 65% pure ethanol. It is usually produced at homes from raisins. Its production and possession by ordinary citizens is considered illegal in Iran (which is the case for all alcoholic beverages). Prior to 1979 revolution in Iran this product had been produced traditionally in several cities of Iran. Since it was outlawed after 1979, it became a black market and underground business. Today, Aragh Sagi is widely considered a cheap alcoholic beverage that consumers choose due to lack of other available options.
Aragh (also arak) generically refers to a set of aromatic liquids that are produced by distillation from herbs and seeds, for example mint or anise. Alcoholic aragh is produced from raisins. Aragh-e Sagi (Persian: عرق سگی, literally "doggy arak" from sag = dog in Persian) is a purer and stronger sort of Iranian arak distilled from raisins but without anise.
Back in 1960's the Meikadeh company produced Aragh which had a picture of a Dog -a Beagle- on the bottle as a Trade Mark, and soon public started referring to it as "Aragh Sagi" or "Doggy Aragh", and the name stuck.
Aragh khori, or the Persian drinking session, requires certain rites and rituals usually dictated by the region and the position and age of the participants. Generally speaking, however, the proceedings include considerations for the distributor of the drink, the size and quality of the cups, the participants' turn to drink, and the toasting ceremony.