Saudi Arabia has realized that to attract wealthy expats and Western tourists it needs something: alcohol

Maybe the Spanish we are moving away little by little from alcohol, but beer, wine and spirits continue to be a pillar of Western leisure. Saudi Arabia knows this well, as in its efforts to modernize and gain appeal to Westerners (both expats wealthy as tourists) has decided to make more flexible access to the drink in the country, where its purchase has been radically restricted for more than 70 years. The change is being made timidly, silently, almost underground; but it tells us a lot about how the kingdom is transforming.

The news that they are coming in drops to the West they leave a resounding reading: foreigners will be able to buy alcohol in Saudi Arabia… as long as they meet a series of requirements that focus in your wallet.

Looking to the 20th century. If you like to share a few beers with friends, have dinner with a glass of wine or drink a cocktail when you go out, Saudi Arabia is not your country. Or it hasn’t been at least for the last seven decades. The kingdom is governed by shariawhich vetoes alcohol. Even Foreign Affairs reminds Spaniards traveling to the country that public consumption “is strictly prohibited” and landing with bottles can lead to “severe fines” and an accusation of smuggling.

Saudi Arabia’s zeal to ban the drink dates back to at least the mid-20th century. And not only because of Koranic law and the fact that the kingdom claims to be the guardian of the sacred places of Islam. In the early 1950s, King Abdul Aziz banned the sale of alcohol after one of his sons, Prince Mishari, assassinate a diplomat British drunk.

For diplomats. Although getting alcohol in Saudi Arabia is much (very much) more difficult than in Europe or even in Dubaisomething is changing in the Islamic kingdom. The first sign came just two years ago, beginning of 2024when the Saudis saw the first liquor store in more than 70 years. Of course, the business was launched with certain limitations.

To begin with, the establishment only sold alcohol to non-Muslim diplomats. In fact, it opened precisely in the neighborhood of the city where they work. At least at first The Executive also intended that customers would have to register through an app, obtain an authorization code and respect certain quotas.

A small (big) step. That first store may not look anything like the liquor stores of Europe, but its debut marked a milestone in Saudi Arabia and began to break the long taboo that prevailed in the kingdom around alcohol.

Last November that opening was confirmed when agencies such as Reuters either Bloomberg revealed that the country planned to open two new liquor stores: one in Dhrahan, in a complex owned by the oil company Aramco, and another in Jeddah. The first would be designed for non-Muslim employees of the company. The second would be located again in an area frequented by diplomats.

Expanding the market. In November, both Reuters and Bloomberg reported another relevant news that is now has confirmed The Wall Street Journal: The Riyadh liquor store that was theoretically intended for foreign diplomats will also sell bottles to certain residents of Saudi Arabia. To whom? Especially non-Muslim foreigners with Premium Residence.

These residence permits are basically granted to businessmen, large investors, wealthy foreigners and qualified professionals who work in strategic sectors or for the Government. In December Bloomberg needed In fact, customers who want to buy wine or spirits in Riyadh have to prove that they earn at least 50,000 riyals per month, about $13,300.

Reporter Vivian Nereim, from The New York Times, came in person outside the Riyadh liquor store and spoke with customers of the business who (among other issues) confirmed that one price is applied to diplomats and another, higher price, to the rest of the buyers. A bottle of mid-priced white wine cost about $85, about five times the US price.

“Something was coming”. Against this backdrop, recently TWSJ public a chronicle which goes one step further. According to the American newspaper, Saudi Arabia plans to continue making its relationship with alcohol more flexible with another historic decision: allowing its consumption in luxury hotels and resorts in the Red Sea.

“We always knew it was going to happen, that Saudi Arabia was preparing for something,” explains Michael Ratneyformer US ambassador, who speaks of “physical signs” that have been seen for years: “You went into restaurants and they all had bars. They didn’t offer alcohol, but the infrastructure was emerging.”

The example of Dubai. The objective is clear: to reinforce the country’s attractiveness for expats, investors and tourists as part of the policy promoted by Prince Mohammed bin Salman to modernize the nation, diversify its economy and reduce your fiscal deficit. In recent years the kingdom has already taken several steps in that direction in different areas (in 2018 allowed women get behind the wheel of a car and in 2034 will host the World Cup) and there are those who point that in terms of leisure and alcohol will look to the United Arab Emirates. Especially to Dubai.

In part of the UAE, access to alcohol is limited, but it is relatively easy to obtain in Dubai, a city that has stood out for its ability to attract tourists and wealthy foreigners. For years, those who wanted to access alcohol in Saudi Arabia had to resort to the diplomatic courierartisanal manufacturing at home or the black market, with the risks that it entails. The question is to what extent the kingdom is willing to change that to attract foreign assets.

Images | سيف الظاهر (Unsplash), Ambitious Studio*-Rick Barrett (Unsplash)

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