Saudi Arabia is Lifting the Alcohol Ban for Wealthy Foreigners
For years, Riyadh’s Diplomatic Quarter has existed in a world of its own. With tree-lined walkways, embassies, cafés and carefully manicured lawns, the neighbourhood feels noticeably removed from the rhythms of the wider Saudi capital. Today, it is also home to one of the kingdom’s most discreet – and controversial – social experiments.
Hidden behind an unmarked beige building, a small, tightly controlled shop is now selling alcohol to a select group of non-Muslim foreign residents. It is a development that would have been unthinkable in Saudi Arabia just a few years ago.
The kingdom banned alcohol nationwide in 1952, aligning state law with Islamic teachings. But in recent years, Saudi Arabia has been reshaping both its economy and its public image. Cinemas have reopened, music festivals draw global stars, women are driving, and the powers of the religious police have been sharply curtailed. Still, the cautious easing of alcohol restrictions may be the boldest step yet.
The store quietly opened in January 2024, initially serving only diplomats. By the end of 2025, without public announcement, access was expanded to wealthy non-Muslim expatriates. Eligibility is narrow: customers must either hold a Premium Residency permit – which costs 100,000 riyals annually – or earn at least 50,000 riyals a month. Both categories largely cover senior executives, investors and highly skilled professionals.
Entry is tightly monitored. Visitors must present residency documents detailing both religion and legal status. Those without premium permits must also provide proof of income. Tourists are excluded entirely.
Inside, phones are sealed away, purchases are tracked through a points-based quota system, and prices are steep. A bottle of imported whisky can cost several times more than it would in Europe or North America – though still far cheaper than Saudi Arabia’s long-standing black market.
Despite the secrecy, word has spread quietly among expatriate circles. Many customers say they learned of the shop through friends rather than official channels. The location does not appear on online maps, and there has been no public government statement acknowledging the policy change.
Analysts say that ambiguity is intentional. By avoiding formal announcements, authorities retain flexibility to expand – or reverse – the policy without provoking a public backlash.
Alcohol remains a sensitive issue in a deeply religious society, even as social norms evolve. While officially banned, drinking has long taken place behind closed doors: in private homes, gated compounds and diplomatic spaces. Smuggled alcohol and homemade brews have circulated for decades, often at great personal risk.
The timing of the shift is also significant. Saudi Arabia is under growing economic pressure as oil prices remain well below their 2022 peaks. At the same time, the government is pushing to attract foreign capital, skilled workers and tourists to fuel non-oil industries such as technology, manufacturing and entertainment.
Vision 2030 – the kingdom’s long-term economic transformation plan – places tourism at its core. International arrivals are rising fast, and non-religious travel now accounts for a growing share of visitors. Luxury resorts along the Red Sea, cultural destinations like Al-Ula, and major global events are central to this push.
Industry insiders say hotels and resorts are already preparing for further change. Some hospitality groups have begun recruiting staff with experience in alcohol service, anticipating a possible extension of sales to tourist zones in the future. If that happens, it is expected to be tightly limited to specific locations rather than broadly legalised.
Saudi Arabia is watching regional rivals closely. Dubai’s liberal nightlife has long attracted expatriates and tourists, but analysts believe Riyadh will opt for a more conservative model, similar to Qatar’s approach – where alcohol is confined to designated venues and high-end hotels.
With the country set to host major global events in the coming decade, including the World Expo and the FIFA World Cup, pressure is mounting to accommodate international expectations while maintaining domestic sensitivities.
For now, alcohol remains officially out of public view, accessible only to a narrow segment of foreign residents behind guarded doors. Whether this quiet experiment marks the beginning of a broader shift – or remains an isolated exception – will depend on how far Saudi Arabia is willing to go in balancing tradition, reform and global ambition.
