Saudi Arabia tipped to ease alcohol ban as it uncorks tourism potential

There are signs the kingdom is weighing loosening alcohol restrictions to unleash a tourism gold rush

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A bartender serves a drink at a pop-up bar in Riyadh offering non-alcoholic cocktails. Saudi Arabia opened its first-ever liquor store this year. Photo: AFP

Published: 8:00am, 24 Jun 2024

Saudi Arabia’s ambitions of becoming a leading global tourist destination and regional business hub have fuelled expectations that the kingdom may gradually relax its ban on alcohol.

The government tested the waters by allowing the opening of a liquor store in the al-Sarafat diplomatic quarter of Riyadh in February for non-Muslim embassy staff.

Next could be the Red Sea island resorts being built under Saudi Arabia’s Vision 2030 economic diversification programme, where analysts say hotels and restaurants may be allowed to have alcohol licences, mimicking Egypt’s popular Sharm el-Sheikh and Hurghada resort towns.

The St. Regis Red Sea Resort, part of a tourism megaproject being developed by state-run Red Sea Global, hosted a fashion show last month featuring women wearing modest swimwear – a notable departure from the kingdom’s strict conservative dress norms. Saudi women typically wear concealing black abaya gowns, though this dress code has been relaxed for foreign visitors.

The introduction of entertainment hubs like Red Sea Global and the Qiddiya project near Riyadh “may also incorporate more liberal amenities to cater to international visitors while balancing religious sensitivities”, said Saudi political commentator Salman al-Ansari.

Models wear beachwear from a Moroccan designer’s collection during a fashion show at the St. Regis Red Sea Resort in May. Photo: AFP

“Any such changes will likely be carefully managed to ensure they align with Saudi societal values,” he told This Week in Asia.