Saudi Arabia Expands Alcohol Access with New Stores, Navigating Reform and Tradition

In a significant step within its ambitious reform agenda, Saudi Arabia is preparing to open three new alcohol stores exclusively for its non-Muslim foreign residents, according to sources familiar with the plans who spoke with Reuters. This move carefully expands a service initially launched for diplomats and signals the kingdom’s continued, albeit cautious, social evolution.

Targeted Access for a Growing Foreign Population

The planned stores are strategically located to serve specific, segregated communities:

• One outlet will be situated in the eastern port city of Jeddah, catering primarily to the diplomatic corps.

• Another will be established within the heavily secured residential compound of state oil giant Aramco in Dhahran, exclusively for its qualified non-Muslim employees.

• While details on the third location are less clear, it is expected to serve a similar demographic of foreign professionals and Premium Residency holders.

Sources indicate that both the Jeddah and Dhahran stores are slated to become operational in 2026, though no official opening dates have been announced.

Building on a Precedent-Setting Pilot

This expansion follows the landmark opening of Saudi Arabia’s first official alcohol store in the capital, Riyadh, in early 2023. That store, which ended a 70-year prohibition on official alcohol sales, was initially restricted to non-Muslim diplomats. It operates under a strict quota system, earning it the unofficial nickname “The Booz Bank” among its clientele.

Significantly, the customer base at the Riyadh store has already broadened. Diplomatic sources confirm that holders of the coveted Saudi Premium Residency (SPR) permit—a program offering long-term residency to skilled expatriates and investors—are now eligible to shop there. This indicates a clear, incremental strategy to integrate alcohol access into the benefits offered to a high-value foreign demographic.

A Delicate Balance: Vision 2030 and Social Conservatism

The gradual liberalization of alcohol access is a tangible outcome of Crown Prince Mohammed bin Salman’s Vision 2030 reform plan. This sweeping agenda has already transformed the social landscape by reintroducing women’s right to drive, promoting mixed-gender public spaces, and launching a world-class entertainment sector, all while aggressively diversifying the economy away from oil.

“The expansion of these stores is a direct function of Saudi Arabia’s economic ambitions,” said Dr. Emily Milliken, a Senior Gulf Analyst. “To attract the global talent and tourism required for projects like NEOM and the Red Sea development, the kingdom must offer a lifestyle that, at a minimum, approaches international norms. This is a pragmatic, economically-driven decision.”

However, the issue remains deeply sensitive. Saudi Arabia’s identity as the birthplace of Islam and the custodian of its two holiest sites imposes powerful social and religious constraints. The ban on alcohol for the vast majority of the citizen population remains absolute, and public consumption is strictly illegal. The previous black market for alcohol and the dangers of unregulated home distillation underscore the risks of an unaddressed demand.

Official statements reflect this caution. When asked about the potential for alcohol availability for international tourists, Tourism Minister Ahmed Al-Khateeb offered a tellingly ambiguous comment: “We know some international tourists want alcohol, but no change has happened yet.” Pressed on the word “yet,” he replied, “Interpret that as you wish.”

A Calculated Path Forward

As Saudi Arabia prepares to host global events like the 2034 FIFA World Cup, the pressure to accommodate international visitors will only intensify. The new alcohol stores represent a calibrated compromise: creating controlled enclaves for foreign residents without overtly challenging domestic prohibitions. The kingdom is navigating a path of opening its doors to the world while attempting to preserve the traditional social boundaries that have long defined it. The success of this balancing act will be crucial for the future it seeks to build.

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