What does Saudi’s first-ever alcohol store say about new Gulf culture?

Saudi Arabia is planning to open its first liquor store for non-Muslim diplomats in the coming weeks, in the latest shift in the kingdom’s conservative societal traditions and more broadly in the Gulf states’ culture, where many countries are seeing the opening up of alcohol shops, as well as breweries.

Reuters, citing a document and a source familiar with the plans, reported on Wednesday that Saudi Arabia was preparing to open the first such store in the capital Riyadh. Customers will have to register via a mobile app, get a clearance code from the Saudi foreign ministry and then keep to monthly quotas with their purchases, the document reportedly said.

The move is in line with Crown Prince Mohammed bin Salman’s vision to transform the conservative country into a tourism, business and entertainment hub, and build an economy that is not reliant on oil revenues. 

The new store will be in Riyadh’s Diplomatic Quarter, which houses many of the embassies and diplomats in the Saudi capital. Reuters reported that it would be “strictly restricted” to non-Muslims. Some foreign embassies in the quarter already serve drinks. 

Saudi law around alcohol is strict in adherence with Islam where alcohol is forbidden. Those caught consuming or possessing alcohol can be fined, go to jail, experience a public flogging and foreigners can be deported.

Across the kingdom, bars have also been opening offering non-alcoholic cocktails or “mocktails”. One pop-up bar in Riyadh by Blended by Lyre’s serves alcohol-free Bellinis and spritzes in cocktail glasses.

UAE brewery

In the United Arab Emirates and until recently, all alcohol had to be produced overseas and shipped over.

However, Abu Dhabi emirate published a subtle rule change in 2021, which allows licenses holder to make their own alcohol on site. Following the change, Craft by Side Hustle will be opening the country’s first brewery in Abu Dhabi in February, after having a soft launch in December. The venue has the capacity of up to 280 people and will also serve Cajun food. Beers will cost around 45 dirhams ($12.25) a pint.

The Side Hustle brand was created in UAE capital by a group of expats who wanted a taste of home.

Founder Chad McGehee, a native of southern Louisiana, moved to the Emirates around 14 years ago while he was working for IBM. His initial ambition was not to open a brewery in the Emirates.

“The inspiration was to create an authentic ‘local’ craft alcohol brand despite the fact brewing and distilling wasn’t allowed. I always thought of it through the lens of ‘being local is more than just producing here,” McGehee told Al-Monitor.

“While it began as a way for myself and friends to enjoy beer styles we couldn’t get from the macro producers and their importers, it grew into a close knit community of craft enthusiasts who helped us build the brand/branding and even create recipes,” he added.

McGehee said that his company’s cocktail, spirits and wine lists are all filled with “small batch, artisanal offerings” not available in the broader UAE. 

When the brewery opened, Side Hustle already had team of brewers with around 20 years experience building and operating pubs international, so brewing alcohol wasn’t a challenge. 

“The first real challenge I faced was to find partners who were experienced in Abu Dhabi food and beverages (an area Side Hustle lacked experience) and whose vision for what the Capital’s first brewpub should be aligned with ours,” McGehee said.

He then partnered with co-founders Peter Samaha, Nadim Selbak, Adam Davis, Elias Kanaan and the team at Craft LTD to launch the brewery.

McGehee said there was little pushback given the rule change, but he worked with his colleagues to establish the venue in a way that respected the local culture and intent behind the new regulation. 

Asked if there is a strong market for non-alcoholic beers in the UAE, he said: “Given the costs and process specific nuances of producing non-alcoholic beer, we currently do not produce any and do not have a view on the market but it is something we are exploring. We may consider adding to our offering in the near future, should the right product become available.”

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