Key insights and market outlook
Saudi Arabia has quietly expanded access to its only official alcohol store in Riyadh's Diplomatic Quarter to include foreign residents holding Premium Residency permits. The store, opened in January 2024 for non-Muslim diplomats, now serves non-Muslim foreign professionals, investors, and entrepreneurs. This move is part of Crown Prince Mohammed bin Salman's broader liberalization agenda to attract tourism, global business, and reduce oil dependence.
In a significant policy shift, Saudi Arabia has expanded access to its sole official alcohol store located in Riyadh's Diplomatic Quarter. The store, which opened in January 2024 exclusively for non-Muslim diplomats, now allows foreign residents holding Premium Residency permits to purchase alcoholic beverages. This development is part of Crown Prince Mohammed bin Salman's broader efforts to modernize the economy and attract foreign investment.
The decision reflects Saudi Arabia's ongoing economic liberalization efforts, which include opening cinemas, allowing women to drive, and hosting large music festivals. These changes aim to diversify the economy and reduce dependence on oil revenues. However, the expansion of alcohol sales remains highly controlled, with strict regulations limiting access to specific groups of foreign residents.
The alcohol store operates without a visible sign outside, maintaining a low profile despite its expanded customer base. The new policy has resulted in long queues both in-person and online, with high prices being a notable factor. This controlled experiment in alcohol sales represents a careful balancing act between economic liberalization and maintaining the country's conservative social norms.
While this move signals a significant shift in the kingdom's conservative stance on alcohol, it remains to be seen how this controlled experiment will evolve. The strict limitations on who can purchase alcohol suggest that while Saudi Arabia is opening up economically, it is doing so in a measured manner that respects its cultural and religious heritage.
Alcohol Sales Expansion
Premium Residency Policy Update