Saudi Arabia eyes limited alcohol licensing in selected tourism zones by 2026
In a move that could be considered by many observers as a historic shift in the conservative Kingdom’s social policy, Saudi Arabia is reportedly preparing to permit the sale of alcohol. It would however be limited to about 600 designated venues beginning in 2026, under strict licence and regulatory conditions.
Sources say the pilot scheme is designed to service luxury hotels, resorts and high-end tourist developments. In particular the ones aligned with the ambitious Saudi Vision 2030 agenda. These venues are expected to include five-star hotels, international resorts. But also large tourism development projects such as Neom, the Red Sea Project, and Sindalah Island.
Only beer, cider and wine?
According to a briefing by market-intelligence firm Wine Intelligence, the licensing would only allow 3 types of alcohol : beer, wine and cider. It would specifically exclude spirits and beverages with greater than 20 % alcohol by volume.
Alcohol sales and consumption will be restricted to these licensed venues; retail sales, take-away, public drinking and in-home consumption would meanwhile remain fully prohibited.
The initiative is framed as part of Saudi Arabia’s efforts to diversify beyond oil, elevate its tourism sector and challenge regional hubs such as Dubai and Doha for global visitors in the lead-up to events like the 2034 FIFA World Cup and the Expo 2030 Riyadh.
Yet significant uncertainty remains. While multiple trade-consulting sources cite the proposed framework, no Saudi governmental body has so far publicly confirmed the full policy adoption or published official regulations. Some points to continuous denials by authorities that the reform is settled.
If implemented, the reform would reflect one of the most consequential cultural changes in the kingdom in decades. Alcohol has been criminalized in Saudi Arabia for more than 70 years, under religious and legal code.
For hospitality operators, global hotel chains and event managers, the prospect of regulated alcohol service in luxury zones could signal new opportunities in licensing, imports, training and venue-management. But the caveats are clear: the reforms appear tightly circumscribed, aimed at foreign visitors and high-end tourism settings. There is no hint of a mass retail or liberalization across society.
In fact, the Kingdom will continue to evaluate how to balance a careful opening up to world-class tourism expectations while preserving its Islamic social fabric.
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