Saudi Arabia has discreetly begun permitting wealthy non-Muslim foreign residents to purchase alcohol, marking a significant departure from a prohibition that has been in place for over seven decades, with observers suggesting the policy may eventually be extended to tourists visiting the kingdom.
In a low-profile development that has received little official fanfare, an unmarked beige complex located in Riyadh’s Diplomatic Quarter, an affluent area long associated with foreign embassies and high-end residential compounds, has emerged as the testing ground for one of the kingdom’s most socially sensitive reforms: the controlled retail of alcoholic beverages to select categories of expatriates.
The kingdom, which is home to Mecca and Medina, Islam’s two holiest cities, officially banned the sale of alcohol in 1952 under King Abdulaziz Al Saud. The prohibition has since been a cornerstone of the country’s strict interpretation of Islamic law and public policy. However, under the leadership of Crown Prince Mohammed bin Salman, who has championed a sweeping modernisation agenda known as Vision 2030, Saudi Arabia has introduced a series of reforms aimed at diversifying its economy, attracting foreign investment, and reshaping its international image.
These reforms have included the reopening of cinemas in 2018 after a 35-year ban, the hosting of major international entertainment and sporting events such as Formula One races and music concerts featuring global stars, the lifting of the driving ban on women in 2018, and the scaling back of the powers of the Commission for the Promotion of Virtue and the Prevention of Vice, commonly known as the religious police. The changes have been framed by Saudi officials as part of an effort to present the kingdom as more moderate, cosmopolitan, and open to business.
The liquor outlet in the Diplomatic Quarter first opened its doors in January 2024, but its operations were initially restricted to non-Muslim diplomats accredited to Saudi Arabia. According to reports, new regulations introduced quietly toward the end of 2025 have expanded eligibility to include wealthy non-Muslim foreign residents who meet specific financial criteria.
Under the updated rules, expatriates must either hold a Premium Residency permit, which costs 100,000 Saudi riyals (approximately $27,000 or £19,300) annually, or demonstrate a monthly income of at least 50,000 riyals. The Premium Residency programme, launched in 2019 as part of Vision 2030, is designed to attract high-net-worth individuals, senior executives, investors, entrepreneurs, and highly skilled professionals to live and work in the kingdom on a long-term basis. The scheme offers benefits including the ability to own property, sponsor family members, and establish businesses without a Saudi partner.
Customers seeking to purchase alcohol at the store are required to present a national residence identity card that indicates their religion and residency status. Those who do not hold a Premium Residency permit must also provide a company-issued salary certificate as proof of income. Tourists and visitors on short-term visas remain ineligible under the current policy.
Several expatriates who have accessed the facility told the BBC that they learned of its existence through informal channels and word of mouth, as Saudi authorities have not issued any official public announcement regarding the policy shift. The store does not appear on commercial online mapping platforms such as Google Maps, contributing to its discreet profile.
“A friend just shared the location with me on Google Maps,” one Asian expatriate residing in Riyadh told the BBC, highlighting the informal manner in which information about the outlet has circulated among eligible foreign residents.
Inside the facility, strict security protocols are enforced. Customers are required to surrender their mobile phones upon entry, which are then placed in tamper-proof bags to prevent photography or recording. Waiting times can exceed one hour due to demand and the processing procedures in place. One European expatriate described the store as “well-stocked,” offering a range of beer, wine, and spirits, though prices are reported to be significantly higher than those in Western markets.
“A bottle of Johnny Walker Black Label whisky cost me $124 (£90). But I don’t mind paying the premium,” a British company executive told the BBC, noting that despite the elevated prices, the legal option remains cheaper and safer than purchasing alcohol through the black market, which has operated clandestinely in Saudi Arabia for decades despite the official ban.
Purchases are regulated through a points-based monthly quota system that permits customers to buy dozens of litres of spirits per person each month, according to buyers familiar with the arrangement. Diplomats reportedly receive discounted rates compared to other eligible customers.
The introduction of legal alcohol sales, albeit on a highly restricted basis, represents a delicate balancing act for the Saudi government. While the reform aligns with Crown Prince Mohammed’s broader vision of economic modernisation and social liberalisation, it also risks alienating conservative religious elements within Saudi society who view such changes as incompatible with Islamic values.
Alcohol consumption has long been prohibited in Saudi Arabia under Islamic law, which forbids intoxicants. The 1952 ban was implemented following the death of a senior member of the royal family in an alcohol-related incident, and it has remained a strict red line in Saudi public life ever since. Violations of the prohibition carry severe penalties, including flogging, imprisonment, and deportation for foreign nationals.
However, diplomats and some expatriates have historically had access to alcohol through informal arrangements, including home-brewing kits and supplies smuggled into diplomatic compounds. The establishment of a formal retail outlet for diplomats and now select expatriates suggests an effort by Saudi authorities to regulate and control a practice that has long existed in the shadows.
Observers of Saudi politics and society have noted that the gradual opening of alcohol sales to wealthy foreign residents could be a precursor to further relaxation, potentially including access for tourists. Saudi Arabia has invested heavily in developing its tourism sector in recent years, with ambitious projects such as the Red Sea Project, a luxury resort development, and NEOM, a futuristic city envisioned as a global hub for innovation and business.
In 2019, the kingdom began issuing tourist visas for the first time, a move aimed at diversifying the economy away from oil dependence and attracting millions of international visitors annually. However, the strict prohibition on alcohol has been cited by analysts as a potential barrier to attracting certain segments of the global tourism market, particularly leisure travellers accustomed to alcohol availability in other destinations.
While no official statement has been made regarding future plans to extend alcohol sales to tourists, the incremental approach taken with the current policy suggests that Saudi authorities may be testing public and religious reaction before considering broader liberalisation.
The reforms under Crown Prince Mohammed bin Salman have generated mixed reactions domestically and internationally. Supporters argue that the changes are necessary to modernise the kingdom’s economy, empower women, and create opportunities for the country’s young population. Critics, however, have pointed to the simultaneous crackdown on dissent, the detention of activists, and restrictions on freedom of expression as evidence that the reforms are largely cosmetic and aimed at improving the kingdom’s image abroad without addressing underlying issues of governance and human rights.
The controlled introduction of alcohol sales fits within this broader pattern of selective liberalisation. By limiting access to high-income expatriates and diplomats, the government can argue that it is catering to the needs of a globalised economy and foreign workforce while maintaining that the policy does not affect the general Saudi population or violate Islamic principles.
