Saudi Arabia allows first alcohol sales — but only to foreign diplomats

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Saudi Arabia will allow the public sale of alcohol for the first time in decades at a new shop in the capital Riyadh catering exclusively to non-Muslim diplomats.

The move follows years of speculation about whether Crown Prince Mohammed bin Salman would allow exceptions to the conservative kingdom’s prohibition on alcohol, as he drives an ambitious agenda to develop the nation as a regional trade, finance and tourism hub.

Other Gulf states, including the United Arab Emirates, have allowed non-Muslims to drink in hotels and licensed restaurants for several years.  

But the shop’s inauguration comes as Riyadh reportedly seeks to tighten oversight of the import of alcohol by diplomatic missions, and it was not clear if the move represented a step towards any further changes to laws governing alcohol sales.

Arab News, which is owned by the state-backed Saudi Research and Media Group, reported this month that Riyadh was introducing regulation to “curb the uncontrolled importing of . . . special goods and liquors within the diplomatic consignments” in an effort to end the “improper exchange” of the goods inside the kingdom.

Embassies in Saudi Arabia, such as the US, have shops that sell alcohol to their diplomats, while diplomatic pouches can be moved across borders without facing normal legal procedures. This has meant diplomats have been able to drink in the country — and offer beverages to Saudi guests at parties where liquor flows freely. There is also a thriving black market for alcohol.

The new shop permitted by the government appears designed to bring greater regulation to the diplomatic alcohol supply. Only diplomats who have been registered will be permitted to enter the alcohol shop in Riyadh’s diplomatic quarter, according to “store guidelines” seen by the Financial Times, and they will have to use a designated app to verify their identity and make purchases. 

Entrance will be “strictly restricted to non-Muslims”, photography prohibited and mobile phones are to be secured in special bags while shoppers are in the store, the guidelines state. 

The guidelines lay out a points system to restrict monthly alcohol sales for registered individuals, allowing for up to 40 litres of spirits, 80 litres of wine or 240 litres of beer.

“Apparently the place is extremely well stocked,” said one western diplomat. But they added that it was unclear whether diplomats would now be required to purchase from the new shop rather than accessing drinks through their embassies, as they had done previously.

The Saudi government did not immediately respond to a request for comment about the new shop.

The 70-year-long blanket prohibition on alcohol was originally brought in after an intoxicated Saudi royal shot and killed a British diplomat. But as new restaurants and hotels open boasting alcohol-free bars, and Riyadh develops tourism resorts on the Red Sea, speculation has swirled about whether Prince Mohammed would allow alcohol sales in certain regulated areas to non-Muslim customers.

Many have also suggested that hard drinks might be served on Saudi Arabia’s newest airline, Riyadh Air, a question executives have at times dodged.

Tourism is part of the crown prince’s economic diversification plan, which hopes to boost non-oil business in the world’s largest oil exporter.

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