• Limited Alcohol Legalization: Saudi Arabia will allow the consumption of wine and beer (no spirits) in approximately 600 designated high-end tourist zones (hotels, resorts) starting in 2026, with strict on-premise consumption rules.
• Vision 2030 Driver: This policy is a key part of Saudi Arabia’s Vision 2030 plan to diversify its economy, reduce oil dependency, and significantly boost international tourism (aiming for 100 million annual visitors by 2030).
• Strategic Imperatives: The decision is influenced by the need to compete with other Gulf tourism hubs and to cater to international expectations ahead of hosting major events like Expo 2030 and the FIFA World Cup 2034.
• Balancing Modernization and Culture: The rollout will be tightly controlled with strict licensing and regulations to ensure cultural sensitivity and uphold Islamic values, while other social and tourism liberalization measures continue.

In a significant policy shift tied to its Vision 2030 economic transformation plan, Saudi Arabia will permit limited alcohol consumption in approximately 600 designated tourist zones starting in 2026. This landmark decision aims to bolster the Kingdom’s appeal as a top-tier international travel destination, balancing the move with the preservation of Islamic cultural values.

The new policy will restrict access to wine and beer only, available exclusively in high-end tourist facilities such as five-star international hotels, licensed resorts, and designated tourism villages like those within the Red Sea Global Project and NEOM. Sales will be for on-premise consumption only, with spirits remaining prohibited and no off-premise retail sales allowed. Public spaces, local retail outlets, and private homes will continue to operate under existing Sharia-compliant restrictions, with alcohol strictly banned outside the defined tourist infrastructure. This controlled rollout is a strategic component of Vision 2030, which seeks to reduce oil dependence and attract 100 million annual visitors by 2030, positioning tourism to account for 10% of GDP.

The move is also seen as crucial for competing with neighboring Gulf countries like the UAE and Bahrain, where alcohol is already part of the tourism economy, and in preparation for hosting major global events such as the FIFA World Cup in 2034. International hotel chains have reportedly welcomed the decision, and tour operators are revising packages. Strict licensing, controlled importation, staff training, and clear zoning will be implemented to ensure cultural sensitivity and responsible service. This alcohol reform is part of broader tourism and social liberalization efforts, including an e-visa system and international entertainment events, all designed to modernize Saudi Arabia’s image while respecting its heritage.