- Wealthy non-Muslim foreign residents can now legally buy alcohol in Riyadh.
- The move marks a major change after a 73-year ban on sales.
- Analysts say authorities appear to be testing the policy cautiously.
Saudi Arabia has begun allowing wealthy foreign residents to purchase alcohol under tightly controlled conditions, marking a significant shift after a ban that has been in place since 1952. The Saudi Arabia alcohol policy change is being seen as part of the kingdom’s broader effort to modernise its economy and social landscape, though officials have not made any formal public announcement.
The small retail outlet, located in Riyadh’s Diplomatic Quarter, had initially opened in January 2024 for non-Muslim diplomats. Under new rules introduced at the end of 2025, access has reportedly been extended to wealthy non-Muslim foreign residents, according to reports. Commentators expect the relaxation could eventually be widened to include tourists, though no official confirmation has been given.
The Diplomatic Quarter has long stood apart from the rest of the capital, known for its embassies, upscale housing and relaxed atmosphere compared with other parts of the city. Within this setting, the discreet store has effectively become a testing ground for one of the kingdom’s most sensitive reforms.
Controlled access and cautious rollout
To qualify, foreign residents must hold a Premium Residency permit — which costs about £19,300 ($27,000) a year — or earn at least 50,000 riyals per month. Applicants are required to present residency documents showing their religion and status, while those without the permit must also provide proof of income. Tourists are not currently allowed entry.
Customers reportedly say mobile phones are sealed before entering and that queues can stretch beyond an hour. One European expatriate described the shop as “well-stocked” but said prices are “two to three times” higher than in Western markets, though still cheaper than Saudi Arabia’s black market, as quoted in a news report. Purchases are managed through a points-based monthly quota system, with diplomats reportedly receiving discounts.
Authorities have not publicly commented on the expansion, and analysts suggest the lack of clarity may be intentional. Sebastian Sons, a senior researcher at German think tank Carpo, reportedly said policymakers are moving cautiously on sensitive social issues, adding that reforms may advance gradually and be adjusted if needed, as quoted in a news report.
Alcohol remains prohibited under Islamic law and religious observance continues to shape social norms across much of the country. Despite the longstanding ban, alcohol has circulated privately for years through homemade production, diplomatic imports and black-market channels.
The gradual loosening of restrictions is widely viewed as part of a broader reform agenda under Crown Prince Mohammed bin Salman, which has included reopening cinemas, hosting large entertainment events and expanding social freedoms. Whether the controlled sales experiment expands further is likely to depend on public response and broader policy priorities.
