Saudi Arabia clarifies duty free alcohol sales rules

It was reported last year that the Kingdom had considered the sale of alcohol in duty free areas of selected airports, but the idea has been quashed by Saudi’s tax and customs authority.

In a post on its website on Friday, Zatca clarified the rules for establishing duty free shops in selected airports in Saudi Arabia.

No alcohol in Saudi Arabia duty free: Zatca

The official rules clarified by Zatca state that only products permitted for sale in Saudi Arabia will be offered at airports. As the sale of alcohol is prohibited in Saudi Arabia it will not be permitted in duty free stores.

The authority said that duty free shops are currently located in the departure halls of King Abdulaziz Airport in Jeddah; King Khalid Airport near Riyadh; King Fahd Airport in Dammam and Prince Muhammad bin Abdulaziz Airport in Medina. It indicated it seeks to expand in the air, sea and land ports in coordination with customs legislators.

Duty free shops in the Kingdom sell products which are exempt from customs duties and taxes, making them potentially cheaper than in regular retail outlets.

In its statement Zatca sad: “Tax exemption systems differ from one country to another depending on the location of the duty-free market, arrival or departure terminals, and in accordance with the provisions of the unified customs system and its executive regulations and other relevant regulations in each country.”

Last year the Wall Street Journal reported that Saudi Arabia is planning to allow a beach resort in its megaproject Neom to serve alcohol.

Scheduled to open as soon as this year, the beach resort on Red Sea’s Sindalah island is expected to offer a premium wine bar, a separate cocktail bar, and a bar for “champagne and desserts,” WSJ reported, citing documents dated January.