A police patrol apprehended the expatriate red-handed with 12 cases of liquor in his car near Malaz intersection in the city.
Police searched the car after getting a tip-off from an unidentified caller, who complained the man was selling liquor at various points in Riyadh, the Arab News reported. It did not say when the man was arrested.
Police found that the car used to distribute the liquor was hired from a rental company and the man had failed to return it on time. The company had reported this delay to police.
The man is facing charges on two counts - manufacture and sale of liquor and the use of a stolen car.
He confessed to the charges, police were quoted as saying by the daily.
During their investigation, police found the place where the liquor was brewed and the dealers responsible for its distribution.
Last year, an African school van driver was caught in Riyadh with a large consignment of locally-brewed liquor.
Alcoholic drinks are banned in Saudi Arabia, where the punishment for drinking is a public lashing.