• Saudi Arabia will allow limited wine and beer sales in 600 designated tourist zones by 2026, as part of Vision 2030 to boost tourism and diversify its economy.
• Alcohol will be restricted to licensed luxury resorts and international hotels, with strict regulations to align with Islamic cultural values.
• The policy aims to attract 100 million annual visitors by 2030, positioning Saudi Arabia as a competitive tourism hub alongside regional players like the UAE.

Saudi Arabia has announced a significant policy shift to allow limited alcohol consumption in 600 designated tourist zones by 2026, as part of its broader economic transformation initiative under Vision 2030. The change marks a cultural milestone for the traditionally conservative Kingdom.

The big picture

This decision introduces wine and beer sales at high-end tourism facilities, like five-star hotels and licensed resorts, while maintaining strict regulations to ensure compliance with Islamic cultural values.

• Alcohol sales will be restricted to on-premise venues in tourist areas. No off-premise retail sales or hard liquors will be permitted.
• Public spaces, private homes, and unlicensed venues will remain under Sharia-compliant restrictions prohibiting alcohol.
• The new policy reflects Saudi Arabia’s ambition to attract 100 million visitors annually by 2030 and compete with UAE and Bahrain, where alcohol is already part of tourism.

How it works

Saudi Arabia’s Ministry of Tourism has laid out clear boundaries for the alcohol rollout:

• Designated zones only: Alcohol will be available in licensed luxury resorts, tourist villages, and international hotels.
• Tight regulation: Licensing, importation, and service will be strictly monitored, with mandatory staff training for responsible serving.
• Limited access: Only wine and beer will be allowed, as spirits remain banned.

Context: Vision 2030

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The alcohol policy is part of Crown Prince Mohammed bin Salman’s Vision 2030, a reform program launched in 2016 to reduce Saudi Arabia’s dependence on oil by diversifying its economy through tourism, entertainment, and technology.

• The Kingdom aims for tourism to contribute 10% of GDP by 2030, up from 3% today.
• Projects like the Red Sea Global Project and AlUla UNESCO Heritage Sites are already attracting international attention.

What’s next

Saudi authorities are preparing for a phased implementation of the alcohol policy, starting with pilot zones like the Red Sea Project.

• The Saudi Ministry of Economy and Planning emphasizes balancing global expectations with Islamic cultural preservation.
• Strict measures will ensure alcohol sales don’t create cultural conflicts or violate Sharia law outside tourist zones.

Broader implications

This policy shift positions Saudi Arabia as a more competitive player in the tourism sector, especially against regional rivals like the UAE.

• The move is likely to attract Western tourists and international investors, while critics warn of potential friction with religious conservatives.
• Saudi Arabia is also hosting major global events, such as the FIFA World Cup 2034, which could drive tourism demand further.

The decision to allow alcohol sales in tourist zones is a historic shift for Saudi Arabia, signaling its commitment to economic diversification and international openness. With this change, the Kingdom is setting the stage to become a global tourism leader.

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