Sales of non-alcoholic drinks are booming amongst locals in Saudi Arabia as the government has loosened its hardline ban on alcohol, permitting rich foreign residents to buy alcoholic beverages for the first time in 70 years.
The birthplace of Islam loosened its total ban on alcohol in 2024, when a store exclusively for foreign diplomats quietly opened in Riyadh.
More recent changes mean that non-Muslim foreign residents earning at least 50,000 riyals (around £10,000) per month will now be allowed to shop at the store and purchase alcohol.
New stores to be built
Two new stores serving alcohol are also expected to be built, with one reportedly set to serve state-owned oil giant Saudi Aramco’s foreign workforce.
The other store is to be opened in Jeddah, according to some sources. The city hosts several diplomatic consulates.
The move comes as Saudi Crown Prince Mohammed bin Salman, the de facto ruler of the kingdom, pushes for reforms in a bid to diversify the heavily oil-dependent economy.
The so-called ‘Vision 2030’ reforms have seen a number of hardline Islamic restrictions loosened, from lifting the ban on women driving to the reopening of cinemas.
The government has, however, confirmed that alcohol will not be served at the 2034 World Cup, which the kingdom is set to host.
New opportunities for brewers
The sweeping reforms by the Saudi government have unlocked new ways for young people to socialise.
With a lack of an established pub and bar culture, cafés in the kingdom have begun serving non-alcoholic beer to Saudi locals.
The non-alcoholic beer market in Saudi Arabia is the largest in the Middle East, valued at over half a billion US dollars. Sales of non-alcoholic wine have also ramped up in recent years.
European breweries and vineyards have been eyeing expansion in MENA (Middle East and North Africa) as low- and non-alcohol drinks sales pick up pace in the region.
This all comes at a time when much of the world, especially young people, are drinking less alcohol, whilst ‘no-and-low’ beverage sales across the West fail to compensate for this decline.
Although foreigners wanting a cold pint after work in the desert nation may still have to wait until the two new stores open in 2026, non-alcoholic sales mean it could already be Happy Hour for the drinks industry in Saudi Arabia.
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