Saudi Arabia's Quiet Alcohol Expansion: Long Queues and High Prices in Riyadh
Saudi Arabia's Alcohol Store Expansion Draws Crowds

In a significant yet unannounced shift, Saudi Arabia has quietly broadened access to its only alcohol store, leading to long queues and high prices for a select group of wealthy foreign residents. This move represents the latest step in the kingdom's ambitious liberalisation drive under Crown Prince Mohammed bin Salman.

A Discreet Outlet in the Diplomatic Quarter

The sole, unmarked store is located in Riyadh's Diplomatic Quarter. Initially opened in January 2024 exclusively for non-Muslim diplomats, its clientele has now been expanded. It now permits entry to non-Muslim foreigners who hold a Premium Residency permit, a scheme designed to attract investors, entrepreneurs, and those with specialised skills.

Despite the lack of official announcement, news of the expanded access spread rapidly. This has resulted in conspicuous lines of both cars and people outside the discreet venue, which is designed to resemble a duty-free shop. The ownership of the store remains officially undisclosed.

Strict Security and Soaring Costs

Security at the location is exceptionally tight. Every visitor undergoes rigorous eligibility checks and is frisked before entry. Phones and cameras are strictly prohibited inside, with staff even inspecting eyewear for concealed smart glasses.

Customers who spoke to The Associated Press on condition of anonymity reported that prices inside are sharply elevated. While diplomats are exempt from taxes on their purchases, Premium Residency holders are not afforded the same benefit. Those interviewed described the store as relatively well-stocked, though some noted the selection of beer and wine was limited.

A Cautious Test in a Transforming Kingdom

This controlled experiment in alcohol sales is widely seen as a cautious test by the Saudi authorities. The kingdom, home to Islam's holiest sites, has enforced a ban on alcohol since the early 1950s. The prohibition was instituted by founding monarch King Abdulaziz after a 1951 incident involving his son, Prince Mishari.

The policy unfolds against the backdrop of sweeping social and economic reforms spearheaded by Crown Prince Mohammed bin Salman and his father, King Salman. Their Vision 2030 plan aims to diversify the economy away from oil, attract international business, and boost tourism. This has already seen the introduction of cinemas, permission for women to drive, and the hosting of major music festivals.

However, this liberalisation has strict limits. Political dissent remains harshly criminalised, while alcohol is still firmly banned for the general Saudi public and most residents.

Alternative Routes and Social Shifts

For decades, Saudis and other residents seeking alcohol have often travelled to neighbouring Bahrain or the more expensive option of Dubai in the United Arab Emirates. Others resort to the risky and costly black market for smuggled or bootleg liquor.

Concurrently, a cultural shift is visible within the kingdom. At major events like the Soundstorm music festival, long lines frequently form at stands serving non-alcoholic beer. Many young Saudis and visitors enjoy these beverages as a substitute or to capture the social aesthetic of drinking, often sharing photos on social media.

The Premium Residency permit itself is a cornerstone of the new Saudi strategy. It grants holders rights to own property, start businesses, and sponsor family without a Saudi sponsor, but requires a high income or significant investment to obtain.

This quiet expansion of alcohol access, marked by its exclusivity and high cost, underscores the careful, calculated path Saudi Arabia is taking as it redefines its social contract and global image.