Saudi Arabia’s rumoured 2026 alcohol licences draw official denial

Saudi Arabia’s push to host global events like Expo 2030 and the 2034 FIFA World Cup is intensifying discussions about its strict alcohol ban. Recently, several foreign media reports claimed the Kingdom would legalise alcoholic beverages in select high-end tourist zones by 2026 as part of its modernisation drive. However, Saudi authorities have been quick to deny these claims, maintaining that the longstanding prohibition remains – and will remain – firmly in place.

Rumours of Alcohol Licensing in 2026

In mid-May 2025, an international wine industry blog, along with several other media (citing Spanish outlet Vinetur) reported a landmark policy shift: Saudi Arabia would begin licensing the sale and consumption of alcohol in approximately 600 locations across the country starting in 2026. The story suggested this move was timed to enhance tourism ahead of major events like Riyadh’s 2030 World Expo and the 2034 FIFA World Cup. If true, it would mark the first major easing of Saudi Arabia’s 73-year alcohol ban and a dramatic change in policy.

According to these unconfirmed reports, the new licensing program would allow only certain types of alcoholic drinks and restrict where and to whom they could be served. Key details of the rumoured plan included:

  • Permitted venues (about 600 total): Only in controlled, high-end environments such as five-star hotels, luxury resorts, and designated zones within flagship tourism projects (e.g. NEOM’s developments, Sindalah Island, the Red Sea resorts). Licensed distributors and authorised embassies could import/serve alcohol, and some upscale expatriate residential compounds and international cultural or business events would be allowed to serve drinks. Retail shops, ordinary restaurants, and public spaces would not be licensed – no alcohol would be sold in supermarkets or corner stores, and none in open public areas like beaches or streets.
  • Allowed beverages: Only wine, beer, and cider with at most 20% alcohol by volume. Spirits and liquors stronger than 20% (e.g. whiskey, vodka) would remain prohibited under this scheme. This mirrors policies in some Gulf neighbours where only lower-alcohol drinks are offered to tourists.
  • Strict on-site consumption: Alcohol could only be consumed on the premises of licensed venues. Takeaway sales or off-site consumption would be banned, meaning no bottle could leave the bar or hotel. Home storage, personal brewing, or bringing alcohol into the country outside these licensed channels would still be illegal. Public advertising of alcoholic beverages would also remain forbidden[10] to keep visibility low.
  • Access limited to non-Muslims: The rumoured regulations aimed to cater primarily to foreign visitors and non-Muslim expatriate residents. The general ban for Saudi citizens and all Muslim residents would ostensibly continue in force. Even in tourist zones, staff would check IDs or special permits to ensure only non-Muslims partake, in line with Islamic law. Religious holy cities Mecca and Medina would categorically remain dry, with no exceptions.
  • Tight operational control: Licensed venues would operate under strict regulations and training. Staff would be specially trained in responsible service per Saudi norms. Clear guidelines would govern serving practices (e.g. no overserving, no sales to underage or Muslims). Violations – such as alcohol appearing outside approved areas or service to unauthorized persons – would carry severe penalties, potentially including venue closure or legal action. This ensures alcohol service remains discreet and tightly managed even within the allowed zones.

The rationale given for this controlled legalization was to boost tourism and international business in line with Vision 2030 economic diversification. Observers noted that neighbouring Gulf states like the UAE and Bahrain have long allowed regulated alcohol sales in tourist enclaves, which helped attract foreign visitors and high-profile events. Saudi Arabia, the reports argued, was looking to replicate that success while “balancing cultural and religious considerations”. Indeed, the initial media story framed the change as a balanced approach: opening up just enough to satisfy international travellers during events, without fundamentally altering Saudi society at large.

Official Denials and Current Policy

Despite the detailed plans described in foreign media, Saudi officials swiftly refuted the reports. On May 26, 2025 – just days after the rumour spread – an unnamed Saudi official told Reuters that claims of lifting the alcohol ban were “unfounded,” emphasizing there was no plan approved by authorities to legalize alcohol by 2026. The Reuters report noted the story had first appeared on a wine blog without any official sources, and it “did not give a source for the information”.

State-aligned media in Riyadh echoed the rebuttal. Citing informed sources, Arab News reported that the rumours “lack any official confirmation from relevant authorities and do not reflect existing policies or regulations” in Saudi Arabia. In other words, as of now the law remains unchanged – alcohol is strictly illegal in the Kingdom. Saudi sources stressed that under the Vision 2030 tourism strategy, the country still intends to offer a rich cultural experience without introducing alcohol, a stance that has so far been “well-received by international visitors” according to officials.

Indeed, current Saudi law imposes a blanket prohibition on producing, importing, or consuming alcoholic beverages. This ban has been in place since around 1953, and violations are met with harsh penalties. For foreigners, getting caught with alcohol typically means arrest and deportation, while Saudi citizens face stricter punishments such as fines, imprisonment, or even public flogging under Sharia-based laws. Saudi Arabia (along with Kuwait) remains unique in the Gulf as a nation of zero tolerance for alcohol – even the sale of beer or wine is completely forbidden, unlike the regulated sales in the UAE, Qatar, Bahrain, or Oman.

No official policy changes have been announced to alter this status quo. The only minor exception to the ban has come through highly controlled diplomatic channels. In 2024, Saudi authorities quietly opened a licensed liquor store in Riyadh’s Diplomatic Quarter – but only for non-Muslim foreign diplomats. Access to this store is tightly managed via a government app and Foreign Ministry approval: only registered diplomats can enter, phones are confiscated at the door to prevent photos, and monthly purchase quotas are enforced. This limited pilot initiative was introduced to curb black-market smuggling of alcohol for embassies, without violating the public ban. Aside from that diplomatic exception, alcohol remains completely off-limits to the general public in Saudi Arabia, and officials insist that remains the case going forward.

Crucially, Saudi authorities have even reaffirmed the ban in context of upcoming events. In February 2024, after Saudi Arabia won hosting rights for the 2034 FIFA World Cup, Prince Khalid bin Bandar Al Saud (the Saudi ambassador to the UK) publicly stated that alcohol will not be allowed at the World Cup. In an interview with Britain’s LBC, Prince Khalid emphasized “at the moment, we don’t allow alcohol… If you want to drink after you leave, you’re welcome to, but… we don’t have alcohol”. He confirmed there would be no beer in stadiums or fan zones, not even in hotels during the tournament, humorously adding: “Rather like our weather, it’s a dry country.”  This candid remark from a royal official underscores that Saudi leadership is not prepared to bend the rules even for a global sporting event. “Everyone has their own culture… we don’t want to change our culture for someone else,” the prince explained, reflecting the firm view that national religious norms take precedence over foreign fan expectations.

Tourism Ambitions vs. Cultural Norms

Reports of possible alcohol licensing gained traction largely because of Saudi Arabia’s ambitious Vision 2030 agenda – a sweeping plan to diversify the economy beyond oil by boosting sectors like tourism, hospitality, and entertainment. Crown Prince Mohammed bin Salman’s reforms have already introduced previously unthinkable changes in Saudi society: music concerts, film cinemas, mixed-gender events, and women driving are now officially permitted as the Kingdom seeks to present a more modern, investor-friendly image. Major investments are flowing into luxury mega-projects (NEOM, Red Sea, Qiddiya), and Saudi cities are bidding for international concerts, festivals, and business conferences. The country expects millions of visitors for the Riyadh Expo 2030 and the 2034 World Cup, and acknowledges that many of those visitors come from cultures where having a glass of wine with dinner is routine.

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Saudi Arabia is THE place to go for delicious alcohol-free “mocktails” (photo: Rirri / Unsplash)

From an economic perspective, allowing limited alcohol access in tourist zones could have clear benefits. Industry experts speculate that it would make Saudi Arabia more competitive with Gulf neighbours for hosting global conferences and sporting events. International hotel chains and event organizers often factor in the availability of familiar amenities (like alcohol) when choosing destinations. The rumoured licensing plan was said to potentially create new jobs in high-end restaurants, hotels, and event management, as venues upgrade to meet international expectations. It would also help attract a segment of leisure travellers and expatriates for whom a strict no-alcohol environment is a deterrent. In countries like the UAE, regulated alcohol sales in places like Dubai’s hotels have long been intertwined with tourism growth, and Saudi Arabia’s planners are well aware of these models.

At the same time, any relaxation of the alcohol ban runs into significant cultural and religious barriers. Saudi Arabia’s identity is deeply rooted in Islamic tradition – the King’s title is Custodian of the Two Holy Mosques, reflecting the country’s role as the guardian of Islam’s most sacred sites. Social acceptance of alcohol is extremely low among the Saudi public; many view prohibition as a moral duty and a distinguishing feature of the Kingdom’s Islamic character. Religious scholars (ulema) in Saudi Arabia consistently oppose permitting alcohol, citing Islamic law (sharīʿah) which strictly forbids consumption of intoxicants. There are also fears that even limited alcohol access could lead to public social problems or erode the country’s Islamic values over time. These sensitivities mean the leadership must move cautiously. As one analysis noted, any step toward legalisation would be “controversial both domestically and across the Muslim world”. Thus far, the Saudi government’s approach has been to introduce entertainment and openness without crossing certain red lines – and alcohol remains perhaps the biggest red line.

Outlook – Modernisation with Cultural Integrity

Moving forward, Saudi Arabia faces the challenge of reconciling its economic modernisation goals with its conservative cultural framework. The alcohol licensing episode highlights the intense scrutiny on how far the Kingdom is willing to go. For the moment, officials insist that tourism can thrive without alcohol – pointing to cultural attractions, historical sites, entertainment events, and luxury facilities that can draw visitors even in a “dry” environment. The government is investing heavily in alternative leisure offerings (from theme parks to concerts) to make up for any limitations on dining and nightlife. Enforcement of the ban also remains strict to reassure the public that Islamic norms are upheld; recent years have seen individuals punished for covert alcohol smuggling or consumption, reinforcing that the core law has not changed.

However, with the World Expo and World Cup on the horizon, pressure will likely continue to mount on Saudi Arabia to find some compromise on this issue. It may explore creative solutions – for example, “dry hotels” serving special upscale non-alcoholic cocktails, or alcohol consumption restricted to foreigner-only clubs within secure compounds. Some analysts suggest the Kingdom could implement a system of permits for non-Muslim residents (as existed in Qatar and Oman) if needed, or allow alcohol on cruise ships off the Saudi coast to satisfy tourist demand while technically keeping sales outside Saudi land. As of mid-2025, though, these ideas remain speculative. The official stance is that no change is happening to alcohol laws until further notice.

Our take: It appears that a single speculative report – totally unfounded – was simply picked up by several media outlets, who did not verify their sources. SA-FE.org always checks – and double checks – facts before reporting them. If any official change of policy is announced and enacted, you will find the news here.

Following is a short-list of some of the sources cited in this article:

https://www.reuters.com/world/middle-east/saudi-arabia-official-denies-reports-lifting-ban-alcohol-2025-05-26

https://www.arabnews.com/node/2602196/saudi-arabia

https://wine-intelligence.com/blogs/wine-news-insights-wine-intelligence-trends-data-reports/saudi-arabia-to-license-alcohol-in-select-locations-from-2026?srsltid=AfmBOopbG5VA_L0_oCISsWFVX_bsRbVWNVjvwaQdgpLVYGzEbs4DL9QE

https://www.vinetur.com/en/2025051687704/saudi-arabia-to-allow-alcohol-sales-in-select-venues-ahead-of-major-global-events.html

https://tribune.com.pk/story/2547874/saudi-arabia-to-permit-alcohol-at-600-tourist-sites-ahead-of-world-cup

https://www.vinetur.com/en/2025052788068/world-cup-2034-saudi-arabias-alcohol-debate-intensifies.html

Photo top of page: Stephan Valentin / Unsplash

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