Unlock the Editor’s Digest free of charge
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Saudi Arabia will enable the general public sale of alcohol for the primary time in many years at a brand new store within the capital Riyadh catering solely to non-Muslim diplomats.
The transfer follows years of hypothesis about whether or not Crown Prince Mohammed bin Salman would enable exceptions to the conservative kingdom’s prohibition on alcohol, as he drives an formidable agenda to develop the nation as a regional commerce, finance and tourism hub.
Different Gulf states, together with the United Arab Emirates, have allowed non-Muslims to drink in accommodations and licensed eating places for a number of years.
However the store’s inauguration comes as Riyadh reportedly seeks to tighten oversight of the import of alcohol by diplomatic missions, and it was not clear if the transfer represented a step in direction of any additional modifications to legal guidelines governing alcohol gross sales.
Arab Information, which is owned by the state-backed Saudi Analysis and Media Group, reported this month that Riyadh was introducing regulation to “curb the uncontrolled importing of . . . particular items and liquors throughout the diplomatic consignments” in an effort to finish the “improper change” of the products inside the dominion.
Embassies in Saudi Arabia, such because the US, have retailers that promote alcohol to their diplomats, whereas diplomatic pouches might be moved throughout borders with out dealing with regular authorized procedures. This has meant diplomats have been capable of drink within the nation — and supply drinks to Saudi friends at events the place liquor flows freely. There’s additionally a thriving black marketplace for alcohol.
The brand new store permitted by the federal government seems designed to carry higher regulation to the diplomatic alcohol provide. Solely diplomats who’ve been registered will likely be permitted to enter the alcohol store in Riyadh’s diplomatic quarter, in accordance with “retailer pointers” seen by the Monetary Instances, and so they should use a delegated app to confirm their id and make purchases.
Entrance will likely be “strictly restricted to non-Muslims”, images prohibited and cell phones are to be secured in particular baggage whereas consumers are within the retailer, the rules state.
The rules lay out a factors system to limit month-to-month alcohol gross sales for registered people, permitting for as much as 40 litres of spirits, 80 litres of wine or 240 litres of beer.
“Apparently the place is extraordinarily effectively stocked,” mentioned one western diplomat. However they added that it was unclear whether or not diplomats would now be required to buy from the brand new store slightly than accessing drinks via their embassies, as they’d finished beforehand.
The Saudi authorities didn’t instantly reply to a request for remark in regards to the new store.
The 70-year-long blanket prohibition on alcohol was initially introduced in after an intoxicated Saudi royal shot and killed a British diplomat. However as new eating places and accommodations open boasting alcohol-free bars, and Riyadh develops tourism resorts on the Pink Sea, hypothesis has swirled about whether or not Prince Mohammed would enable alcohol gross sales in sure regulated areas to non-Muslim clients.
Many have additionally advised that tough drinks is likely to be served on Saudi Arabia’s latest airline, Riyadh Air, a query executives have at occasions dodged.
Tourism is a part of the crown prince’s financial diversification plan, which hopes to spice up non-oil enterprise on the earth’s largest oil exporter.