Saudi Arabia Quietly Ends 73-Year Alcohol Ban for Affluent Foreign Residents
Saudi Arabia has discreetly eased its decades-long prohibition on alcohol, allowing wealthy foreign residents to purchase alcoholic beverages for the first time in seventy-three years. This significant policy shift, centered in Riyadh's Diplomatic Quarter, represents one of the boldest social experiments under Crown Prince Mohammed bin Salman's comprehensive reform agenda. Analysts suggest this move could potentially pave the way for broader changes, including possible future access for international tourists.
Discreet Implementation in Diplomatic Quarter
The policy change was first tested in Riyadh's Diplomatic Quarter, where a specialized store opened discreetly in January 2024. Initially restricted to non-Muslim diplomats, the establishment expanded access at the end of 2025 to include affluent non-Muslim expatriates. The Saudi government has not formally announced this policy shift, with many buyers learning about the store through word-of-mouth recommendations and digital sharing.
Strict Eligibility Requirements for Purchases
To qualify for alcohol purchases, expatriates must meet specific criteria. They must either hold a Premium Residency permit, which costs 100,000 Saudi riyals annually, or earn a minimum monthly salary of 50,000 riyals. Customers are required to present their residence identification card, which confirms their religion and residency status. Those without permits must additionally provide company-issued salary certificates. Foreign tourists remain excluded from this scheme for the time being.
Rigorous Controls and Premium Pricing
The store implements strict security measures, with visitors reporting that mobile phones are sealed in tamper-proof bags before entry. Queues sometimes extend beyond an hour, indicating significant demand. Inside, the establishment is described as well-stocked, though prices are substantially higher than Western markets, typically two to three times more expensive. Alcohol purchases are regulated through a points-based monthly quota system that customers describe as generous enough to allow dozens of litres of spirits.
Economic Motivations Behind Policy Shift
The timing of this policy change coincides with growing economic pressures within Saudi Arabia. With energy markets experiencing subdued conditions and public finances tightening, the kingdom has actively sought to attract foreign capital and high-skilled expatriates. This move aligns with broader economic reforms, including eased rules for foreign property ownership and investment, alongside scaled-back ambitious projects like the Neom mega-city development.
Vision 2030 and Tourism Expansion
Tourism remains central to Saudi Arabia's Vision 2030 programme, with the country welcoming nearly thirty million international visitors in 2024. Non-religious travel accounted for more than half of these arrivals, and the kingdom aims to attract seventy million international tourists by 2030. The alcohol policy could eventually extend to tourists, though current access remains limited to wealthy expatriates. This quiet expansion of legal alcohol sales represents a significant step in Saudi Arabia's ongoing social transformation.
Analyst Perspectives on Cautious Approach
Analysts suggest the ambiguity surrounding this policy change is intentional, reflecting authorities' cautious approach to sensitive social issues. Sebastian Sons, a senior researcher at German think tank Carpo, noted that Saudi authorities are willing to take measured steps forward while maintaining flexibility to adjust if necessary. This approach allows the government to test public reaction while advancing its reform agenda.
Alcohol has long been prohibited under Islamic law in Saudi Arabia, yet it has circulated privately for decades through homemade brews, imported labels, embassy supplies, and expensive black market goods. The current policy shift represents a formal acknowledgment of changing social dynamics and economic necessities within the kingdom.
