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Riyadh, 5 February 2026
Exclusive Riyadh store tests controlled alcohol sales for non-Muslim foreigners
Saudi Arabia has discreetly begun selling alcohol to affluent foreign residents, marking a historic shift in a country where such sales have been banned since 1952. The move, introduced without public announcement in late 2025, currently applies only to non-Muslim expatriates holding premium residency permits or earning high salaries.
Discreet store in Diplomatic Quarter serves as pilot
Tucked inside an unmarked beige complex in Riyadh's upscale Diplomatic Quarter, a small liquor outlet has become the testing ground for the kingdom's sensitive policy change. The store, which first opened in January 2024 for diplomats only, now allows wealthy foreign residents to purchase beer, wine, and spirits under strict eligibility rules.
To qualify, expats must either hold a Premium Residency permit-costing 100,000 Saudi riyals ($27,000) annually-or demonstrate a monthly income of at least 50,000 riyals ($13,300). Security guards verify residency status and religion via ID cards at the entrance, while those without permits must present a company-issued salary certificate. Foreign tourists remain barred from entry.
Strict controls and high prices reflect cautious approach
Customers describe a tightly regulated experience: mobile phones are sealed in tamper-proof bags before entry, and queues often exceed an hour. Inside, the store is reportedly well-stocked but prices are steep-two to three times higher than Western markets. A bottle of Johnny Walker Black Label whisky, for example, sells for $124 (£90), though buyers say this is still cheaper than black-market rates.
Purchases are governed by a points-based monthly quota system, allowing individuals to buy dozens of litres of spirits. Diplomats receive discounts, but the government has made no official statement about the policy, leaving details to circulate by word of mouth. The store's location remains unlisted on online maps, underscoring the experiment's low-profile nature.
"Supplies have stabilized, but we're proceeding cautiously to avoid backlash," an unnamed government source told analysts.
Economic pressures and Vision 2030 drive gradual reforms
The policy shift aligns with Saudi Arabia's broader efforts to diversify its economy and attract foreign investment amid subdued oil prices. With crude trading around $60-$66 per barrel-down from over $100 in 2022-Riyadh is seeking to boost non-oil sectors like tourism, AI, and manufacturing. The kingdom aims to double tourism's GDP contribution by 2030, targeting 70 million international visitors annually, up from nearly 30 million in 2024.
"We want to position Saudi Arabia as a modern, investment-friendly society," Tourism Minister Ahmed Al Khateeb said in a November 2025 interview. The country is preparing to host the 2030 World Expo and 2034 FIFA World Cup, though some projects, like the Asian Winter Games in Neom, have faced delays due to budget constraints.
Hospitality industry anticipates further easing
While the current policy excludes tourists, industry insiders say hotels are already preparing for potential expansions. Multinational chains have begun hiring bartenders, and job postings list knowledge of spirits as a desirable skill-even without explicit mentions of alcohol service.
"If rules change, we want to act immediately," said a senior executive at a global hospitality firm, speaking anonymously.
Analysts expect tourist hubs like the Red Sea islands and Al-Ula to be early candidates for broader alcohol access. However, Saudi Arabia is unlikely to adopt Dubai's liberal model. Instead, experts predict a restrictive approach similar to Qatar's, where alcohol is limited to designated hotels and venues-even during the 2022 World Cup.
Social taboo persists amid regional competition
Alcohol remains a sensitive issue in Saudi Arabia, where nearly two-thirds of the population are nationals and public sentiment is difficult to gauge. While some Saudis support recent social reforms-such as cinemas, music festivals, and women driving-many view alcohol as a red line.
"A majority of Saudis who welcomed other reforms may hesitate to support this publicly," said an anonymous Saudi intellectual. "Even those who drink do so privately or abroad."
For now, many Saudis and expats continue to cross into Bahrain, where alcohol is legally available. Meanwhile, Riyadh is reportedly planning two additional stores-in Jeddah and Dhahran-though both are expected to maintain the same eligibility restrictions.
What's next?
Sebastian Sons, a senior researcher at the German think tank CARPO, suggests the government is testing public reaction. "They're willing to take two steps forward and one step back on sensitive issues," he said. If the pilot succeeds, alcohol sales could eventually extend to tourists-but likely under strict controls, especially during major events like the 2034 World Cup.
