Saudi Arabia | In a move that has sparked global discussion, Saudi Arabia has quietly eased its long-standing restrictions on alcohol sales, allowing broader access to the Kingdom’s only authorised liquor store. While no official announcement has been made, the impact of the decision is already visible, with long queues of cars and people reported outside the store in Riyadh’s Diplomatic Quarter.
According to multiple reports, non-Muslim foreign nationals holding a Premium Residency Permit are now permitted to purchase alcohol from the store. Until recently, access was limited strictly to non-Muslim diplomats. The policy shift marks a significant, though discreet, departure from decades of absolute prohibition on alcohol in the conservative Gulf nation.
The store, which reportedly opened in January 2024, is located in Riyadh’s Diplomatic Quarter and operates without any signage or identifiable markings. From the outside, it appears like an ordinary building, reflecting the cautious approach Saudi authorities have taken while implementing the change.
What Is the Premium Residency Permit?
The Premium Residency Permit is part of Saudi Arabia’s broader strategy to attract high-net-worth individuals, investors, entrepreneurs and professionals with specialised skills. Applicants are required to meet strict criteria, including high income levels and substantial investment. Permit holders enjoy privileges such as the right to own property, run businesses without a Saudi sponsor and live in the Kingdom with their families.
High Prices, Limited Choices
Customers exiting the store told international media outlets, including the Associated Press, that alcohol prices are significantly higher than in neighbouring countries. While diplomats enjoy tax exemptions on purchases, Premium Residency holders do not receive such benefits. Shoppers described the store as well-stocked, though some noted that the selection of beer and wine remains limited for now.
Earlier Alternatives
For years, Saudi Arabia’s strict ban on alcohol led residents to seek alternatives. Many travelled to neighbouring Bahrain, where alcohol consumption is legal for both Muslims and non-Muslims. On weekends and holidays, Bahrain often sees an influx of visitors from Saudi Arabia and other Gulf countries, making alcohol tourism a key part of its economy. Others relied on smuggled alcohol within Saudi Arabia, which is both illegal and extremely expensive.
Why the Change Now?
The easing of access to alcohol is being seen as part of the broader social and economic reforms introduced under the leadership of Crown Prince Mohammed bin Salman and King Salman. Over the past few years, Saudi Arabia has opened cinemas, allowed women to drive and hosted large-scale music and entertainment festivals.
Analysts believe these changes are aimed at boosting tourism, attracting foreign investment and reducing the country’s dependence on oil revenues. The move aligns with the Kingdom’s ambitious Vision 2030 programme, which seeks to modernise Saudi Arabia and integrate it more closely with the global economy—while still balancing traditional values with gradual reform.
