Alcohol in Saudi Arabia: Small change or big upheaval?

The announcement of the impending opening of Saudi Arabia's first alcohol store is sparking debate in the ultra-conservative kingdom, with locals and expatriates wondering whether it is a change of facade or the start of a major upheaval.

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Sources familiar with the matter revealed on Wednesday the details of the project, which is being closely monitored by authorities and will not change anything for the vast majority of the Gulf monarchy's 32 million residents.

The store is located in the capital Riyadh and will only be open to non-Muslim diplomats, who were previously able to purchase alcohol through diplomatic bags.

Buyers are subject to quotas and must register via a mobile application. They will also be required to keep their phone in a “special bag” while filling their shopping carts with beer, wine and spirits.

However, some see the measure as a violation of the country's prohibition policy since 1952 and a harbinger of major changes to come.

“This country never ceases to surprise us,” reacts a Lebanese businessman dining on Wednesday evening at LPM, a French restaurant in Riyadh known for its extensive selection of wines and non-alcoholic cocktails, as well as its 18-meter-long marble bar.

“It is a country that is developing, growing and attracting a lot of talent and investment. So yes, of course there will be many more,” he believes.

Like other LPM clients, the businessman refuses to be named, underscoring the sensitivity of issues surrounding alcohol – banned by the Muslim religion – in the country that is home to two of the world's holiest sites: the Islam.

“Scary”

Two Saudis in their 30s sit over hazelnut tiramisu and worry about the kingdom's identity.

“We’re not,” one of them said, but assured that he doesn’t judge people who drink. But, he said, “having a store that sells alcohol impacts the culture and the community.”

“Let’s say if I have a younger brother and there’s alcohol around, there’s a chance he could become an alcoholic,” he explains.

His friend believes that those who want to drink should, as always, do so abroad. “It’s scary that they allow things like this to enter the country,” he said.

As part of his sweeping reform agenda, the kingdom's crown prince and de facto ruler Mohammed bin Salman is seeking to diversify the economy of the world's top oil exporter by developing the business, sports and tourism sectors.

It needs to attract more foreigners, and a “gradual” lifting of alcohol restrictions could play a role in this, emphasizes Kristin Diwan of the Arab Gulf States Institute in Washington.

“This is another step by the government to normalize the licensing of alcohol in certain contexts,” she said.

“Strictly controlled”

Saudi authorities said on Wednesday their aim was to “combat the illegal trade in alcoholic products received by diplomatic missions”, citing the black market where a bottle of whiskey can cost several hundred dollars.

For Kristian Ulrichsen, a researcher at Rice University's Baker Institute, they send a “subtle message that change could happen, but that the process will be gradual and tightly controlled.”

Meanwhile, catering professionals remain cautious. The measure has “no direct impact” on the industry, says an industry representative, but emphasizes that it could help change Saudi Arabia’s image and attract “more visitors,” i.e. customers.

On the other hand, the purveyors of mocktails and other soft drinks that are thriving in the teetotal kingdom are in no rush when it comes to change in the country.

“That is not good for me. I would lose my business,” jokes Evans Kahindi of Blended by Lyre’s, a non-alcoholic spirits company.

“There has always been speculation” on the issue, he emphasizes, but “it is in the hands of the government.”