Wines in Saudi Arabia: ISIC 1552

Saudi Arabia’s wine market was valued at SR1.4 billion in 2011. Sales are based almost entirely on non-alcoholic wine, imitational wine drinks and tourist spending abroad, as wine legally consumed by Saudi residents in other countries technically falls under Saudi Arabia’s wine imports. The actual wine market is nonexistent in Saudi Arabia, as Sharia Law prohibits any form of alcohol in the country. The domestic alcoholic market solely comprises non-alcoholic beer, which is the only acceptable beverage under Saudi Arabian regulations. . Saudi Arabian laws are intended to protect people from the perceived negative effects of alcohol consumption, both on the individual and on society as a whole. Alcohol is viewed as preventing the imbiber from carrying out prayers and as leading the intoxicated person into potentially reprehensible and negative social habits. In addition, alcohol is seen as preventing people from performing everyday tasks while creating the alcohol-related problems which are visible elsewhere in the world.. Alcohol is classified as Al Khamr, a term generally including any beverage that intoxicates the drinker, whether it is produced from grapes or other substances such as dates, corn or barley. This prohibition includes any volume measure where the whole beverage can cause intoxication. The majority of jurists agree that when a person speaks or acts irrationally after the consumption of alcohol he or she can be considered to be intoxicated and thus liable for punishment under Sharia Law. Other evidence of drinking is required, however, with this typically based on testimony, smell, confession, vomiting and/or intoxication. . There is no specific punishment provided by the Koran for the consumption of alcohol. However, the Prophet later set a precedent by using flogging as a punishment for such an offence. There are different views among jurists as to the number of lashes a person should receive, however, with some calling for 80 and some for 40. . Despite the fact that the consumption of alcohol and intoxicating matter is strictly prohibited in Saudi Arabia, illegal trade occurs throughout the Kingdom. This involves some wealthy and influential Saudi Arabian nationals as well as a number of expatriates from Europe and North America. Alcohol is mostly smuggled in from the United Arab Emirates and Bahrain, where it can be legally consumed. In addition, wine is sometimes produced within the country, with some individuals even sharing distillation recipes online. . Ordering alcohol is an extremely risky business inside Saudi Arabia. Telephone and internet connections are tapped and distributors and purchasers thus devise codes in order to fool the police. Alcohol is normally requested by addressing the other person as “siddiqui,” which is a common greeting throughout the Arab world. Numbers are then worked into the conversation in order to convey the amount of alcohol and type of beverage required. . In line with local regulations, alcoholic drinks with the exception of non-alcoholic beer are not sold through any duty-free shop in the country. Sales of alcoholic drinks through duty-free shops are solely generated by non-alcoholic beer, which is sold freely in all outlets and served in Saudi airport cafés and restaurants. . While non-alcoholic beer is becoming a popular beverage in the entire Middle East region, non-alcoholic wine is more difficult to make and promote. Since the alcohol in wine is a flavour carrier, de-alcoholised wine only looks “real” yet is generally very different in terms of taste. The best performing non-alcoholic wine during the review period was sparkling wine, which contains a high level of carbonic acid and therefore stabilises the flavour without the use of alcohol. Also apple wine looks promising, as it contains less alcohol in general.. Alcohol-free wine and champagne are mainly exported to countries with a high alcohol tax, such as Sweden, Norway or Finland. However, these products are also exported to countries with an Islamic ban on alcohol, such as Saudi Arabia, with these countries showing an increasing interest. . In 2011, Dutch businessman Taner Tabak , managed to get a certificate for alcohol free wine Kevserhelalwine. The company making the wine is called Delikatwine and is based in the Netherlands. The company offers non-alcoholic red, white and rose wine, in addition to the heavy wine.. Unless some drastic changes are implemented to the current regime, alcoholic wine has no future in Saudi Arabia. The Kingdom’s economy survived the global financial crisis with minimal effect and is expected to maintain strong growth in the short-term on the back of a healthy recovery in oil earnings. However, strict anti-alcohol laws will continue to limit the mass consumption of wine in the country. A possible niche is the production of non-alcoholic wine. However, this product area is still in a nascent stage globally. Developers are struggling to create an aroma and taste similar to that of real wine that does not boost production costs. However, as Saudi Arabia is increasingly exposed to Western culture and drinking a glass of wine, even non-alcoholic, could eventually become a status symbol in the country, especially among the ever-expanding mid-income group. .

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