The news that Saudi Arabia is to allow its first alcohol shop has citizens and foreigners alike mulling one question: Is this a minor policy tweak, or a major upheaval?
Sources familiar with preparations for the store disclosed details of the plan on Wednesday, as a document circulated indicating just how carefully leaders of the teetotalling Gulf kingdom is to manage its operations.
Located in the capital’s Diplomatic Quarter district, the store is to be accessible only to non-Muslim diplomats, meaning that for the vast majority of Saudi Arabia’s 32 million people, nothing has changed for the moment.
Photo: AFP
Additionally, purchasing quotas are to be enforced. Access to the store is to be restricted to those who register via an application. Customers are to be asked to keep their phones in a “special mobile pouch” while they browse for beer, wine and spirits.
Still, some Riyadh residents said that they saw the development as the first step toward wider availability of alcohol, which would be a dramatic break from the nationwide prohibition that has been in place since 1952.
“This country keeps on surprising us,” said a Lebanese businessman dining on Wednesday night at LPM, a French restaurant in Riyadh known for its lengthy list of non-alcoholic wine and cocktails mixed behind an 18m long marble-top bar. “It is a country that is developing, that is growing and that is attracting a lot of talent and a lot of investments. So yes, of course, there’s going to be much more.”
Photo: AFP
However, like other diners at LPM, the businessman declined to be named, highlighting the sensitivity surrounding anything related to alcohol — which is banned in Islam — in the country that is home to the Muslim holy places of Mecca and Medina. At another table, tucking into an order of hazelnut tiramisu, two Saudi men in their thirties said they worried about what the sale of alcohol would mean for the kingdom’s identity.
“It’s not who we are,” one of the men said. “It’s not that I have, like, some kind of judgement towards people who drink. No, absolutely not. But having something that is out there affects the culture and the community.”
He added: “Let’s say if I have a younger sibling, if alcohol is out there, there is a possibility that he will become an alcoholic.”
His friend chimed in to say that he would prefer that people continue to go abroad to drink, as many do currently.
“It’s just scary that they’re allowing such things into [the country]. Any individual that wants to try alcohol, it’s literally an hour by plane away,” he said. “Everybody travels here. It’s easily accessible. But what I want to say is that in this jurisdiction, I’m not happy that it’s allowed.”
Under his Vision 2030 reform agenda, de facto ruler, Saudi Arabian Crown Prince Mohammad bin Salman, is trying to turn the world’s biggest crude exporter into a business, sports and tourism hub that can prosper in an eventual post-oil era. That requires attracting more foreigners and permitting alcohol “in stages” could play a role in that, Arab Gulf States Institute in Washington researcher Kristin Diwan said. “This is one more step in normalizing government sanction of alcohol in defined settings.”
The Saudi Arabian Center for International Communication on Wednesday said the new policy’s goal was “to counter the illicit trade of alcohol goods and products received by diplomatic missions.”
That was an apparent reference to the thriving local black market, where bottles of whiskey frequently go for hundreds of dollars. Framing the news this way “is likely intended to send a subtle message that change may be on the way, but that the process will be incremental and tightly controlled,” said Kristian Ulrichsen, fellow for the Middle East at Rice University’s Baker Institute for Public Policy.
For their part, restaurant industry insiders were unsure whether business would be affected in the immediate term.
“For the food and beverage industry, this doesn’t make a direct impact,” one manager said, though he added that if it alters how the outside world sees Saudi Arabia, “this could attract footfall towards the kingdom,” meaning more customers.
If access to alcohol in Saudi Arabia eventually expands beyond what sources described on Wednesday, those with the most to lose include vendors of mocktails and other non-alcoholic beverages, which are increasingly fashionable.
“It’s not a good thing for me. I’ll lose my business,” Evans Kahindi, brand manager for Blended by Lyre’s, a non-alcoholic spirits company, said with a laugh. “There has always been speculation about having the real alcohol here... But to be honest, it’s with the government, we don’t know yet and I cannot speculate on anything.”
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
RSS