Saudi Arabia Expands Alcohol Access with New Stores in Jeddah and Dhahran
In a significant continuation of its social reform agenda, Saudi Arabia is planning to open two new alcohol retail stores, according to sources familiar with the matter. This move follows the landmark opening of the Kingdom's first liquor store in Riyadh in 2024, which ended a decades-long de facto prohibition on such retail outlets.
The proposed new stores are designed for specific, non-Muslim groups. One will be located within a Saudi Aramco compound in Dhahran, catering exclusively to the state oil giant's non-Muslim foreign workers. The other will open in the port city of Jeddah—a hub for international consulates—and will serve non-Muslim diplomats. While no official timeline has been announced, sources indicate both outlets are expected to become operational in 2026.
A Controlled and Cautious Approach to Liberalization
This expansion reflects a highly controlled and incremental strategy by Saudi leadership. Since the inaugural Riyadh store opened, its customer base has already been cautiously broadened to include non-Muslim holders of "Premium Residency" status, an elite visa for wealthy investors and specialists.
Despite these changes, alcohol remains strictly forbidden for the vast majority of Saudi citizens. The government's approach balances economic ambition with deep cultural and religious sensitivities. There has been no official public policy announcement regarding a broad change in alcohol regulation, underscoring the cautious nature of these reforms.
Economic Diversification Under Vision 2030 Drives Change
The loosening of alcohol restrictions is intrinsically linked to Crown Prince Mohammed bin Salman's Vision 2030, a strategic framework to reduce Saudi Arabia's dependence on oil. A key pillar of this vision is to attract foreign investment, talent, and tourism.
As the Kingdom aggressively expands its tourism infrastructure and prepares to host mega-events like the 2034 FIFA World Cup, creating a more accessible environment for international visitors and residents is considered crucial. The availability of alcohol, even in a limited capacity, is seen as a step toward meeting the expectations of a global audience and workforce.
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Regional Context and the Path Forward
This shift brings Saudi Arabia's policies closer, though not equal, to other Gulf nations. Most of its neighbors, with the notable exception of Kuwait, permit the sale of alcohol under specific licenses and within designated areas.
The planned stores in Jeddah and Dhahran represent a clear, albeit measured, step in Saudi Arabia's deeper engagement with the global community. They signal a willingness to adapt certain cultural norms to facilitate economic and social integration. However, senior officials remain publicly non-committal on wider availability. A recent query to a tourism minister about alcohol for visitors was met with the response, "nothing has changed yet," indicating that widespread sales are not on the immediate horizon.
In summary, the opening of two new alcohol outlets in Saudi Arabia for diplomats and Aramco workers marks the next phase in the Kingdom's controlled social liberalization. Driven by the economic imperatives of Vision 2030, these changes are implemented with extreme caution, focusing on specific foreign demographics while the ban for the general public remains firmly in place. This gradualist approach allows Saudi Arabia to pursue its global ambitions while managing a complex and sensitive social transition.
