• Saudi Arabia is expanding its tightly controlled alcohol access with plans for two new stores, building on its first licensed shop opened in early 2024.
  • The policy is designed to serve non-Muslim diplomats, expatriates, and tourists ahead of major global events, while alcohol remains broadly prohibited for the general public.
  • The move supports Saudi's Vision 2030 economic diversification goals but maintains strict operational guidelines to preserve the kingdom's Islamic identity.

Saudi Arabia is moving forward with plans to open two additional alcohol stores, according to people familiar with the matter, marking a further calibrated easing of restrictions as the kingdom prepares to host major international events including the 2030 World Expo and 2034 FIFA World Cup.

The expansion follows the discreet opening of the country's first licensed alcohol shop in Riyadh's Diplomatic Quarter earlier this year. That location, accessible only to non-Muslim diplomats, operates with strict monthly quotas and requires entry approval, with no outward advertising indicating its presence.

Efforts to formalize alcohol access have accelerated in recent months as Saudi Arabia positions itself to accommodate growing international business and tourism traffic. The new stores would maintain the same highly restricted framework, serving diplomatic and select expatriate communities while aiming to curb smuggling and informal channels that have long existed.

"This isn't about changing social norms—it's about creating controlled access points for specific populations that have always had some form of access," said one person briefed on the planning, who asked not to be identified discussing sensitive policy matters.

The government continues to enforce strict operational guidelines: alcohol cannot be advertised, removed from premises where it's served, or provided to Muslims or minors. Violations carry harsh penalties, and authorities have been careful to frame the measures as addressing specific diplomatic and touristic needs rather than representing a broader policy shift.

When reached for comment, a government spokesperson reiterated that "alcohol remains prohibited in the Kingdom according to official policy," without directly addressing questions about the planned new stores.

The incremental approach mirrors policies in neighboring Gulf states like the UAE and Bahrain, which have seen tourism and business gains from regulated alcohol sales while maintaining conservative social frameworks. However, Saudi's system remains significantly more restrictive, with access limited to specific licensed venues rather than general retail.

Religious conservatives have expressed concern about any liberalization, while many business leaders see the moves as pragmatic steps toward economic modernization. The debate has largely focused on economic rather than social arguments, reflecting the government's careful balancing act between international engagement and domestic tradition.

Analysts expect the policy to remain tightly constrained in the near term, with potential for gradual expansion depending on the success of initial implementations and security considerations. Some experts suggest expatriate business executives may gain controlled access after diplomats, but mass retailing or broad public consumption remains highly unlikely.

The reforms represent one of the most visible tests of Saudi Arabia's approach to social liberalization as international events approach and global scrutiny intensifies. The kingdom appears committed to a cautious, incremental strategy that supports economic ambitions while preserving core religious and cultural norms.

Correction: An earlier version of this article stated that spirits would be available at licensed venues. According to current policy proposals, beverages over 20% ABV will remain banned.