Saudi Arabia has quietly allowed wealthy foreign residents to buy alcohol, marking a major shift in social and economic policies. This comes after a 73-year ban and could pave the way for future tourism reforms.
For decades, Riyadh’s Diplomatic Quarter stood apart as an upscale enclave of embassies and residences. Shaded walkways, greenery, and cafés attract young Saudis and expatriates. Inside a discreet, unmarked building, a small store now sells alcohol to wealthy foreign residents, serving as a testing ground for this sensitive policy change.
Saudi Arabia banned alcohol in 1952 under Islamic law. However, the kingdom has introduced sweeping social reforms in recent years. Cinemas reopened, music festivals returned, women gained the right to drive, and the powers of the religious police were curtailed.
The liquor shop initially served only non-Muslim diplomats. At the end of 2025, authorities extended access to wealthy foreign residents. Eligible residents must hold a Premium Residency permit costing 100,000 riyals a year or earn at least 50,000 riyals per month. Security guards verify residency status and religion before entry. Those without a permit need a company-issued salary certificate. Foreign tourists cannot enter yet.
Inside, they sealed, and queues can stretch over an hour. Prices are high, two to three times Western markets, but lower than the black market. Alcohol is sold under a points-based monthly quota, allowing dozens of liters per customer. Diplomats enjoy discounts.
The government has not officially announced the change, and many learned about it through word of mouth. Analysts say the ambiguity is deliberate, allowing careful social adjustment. Authorities aim to avoid backlash while boosting economic growth.
Economic pressures also motivate the move. Saudi Arabia wants to attract skilled expatriates and expand non-oil sectors, including AI, manufacturing, tourism, and entertainment. Luxury resorts along the Red Sea target Western visitors, while reforms aim to increase foreign investment.
Experts predict the next step may allow tourists to buy alcohol in designated areas, such as the Red Sea islands or al-Ula. The kingdom faces competition from Dubai but plans a more controlled approach, similar to Qatar’s restrictions in hotels and fan zones.
Wealthy foreign residents can now purchase legal alcohol, showing Saudi Arabia’s gradual shift toward balancing tradition and modernization.
