In a reversal, the alcoholic drink will not be offered in Qatar's World Cup stadiums, according to a statement released by FIFA on Friday.
The announcement comes two days before the World Cup's Sunday opening match.
Following discussions between host country authorities and FIFA, a decision has been made to concentrate the sale of alcoholic beverages on the FIFA Fan Festival, other fan attractions, and licensed establishments, removing beer sales points from the perimeters of Qatar's FIFA World Cup 2022 stadiums.
Budweiser, a critical World Cup sponsor owned by AB InBev, intended to serve alcoholic beer solely within the ticketed perimeter of each of the eight stadiums for three hours before and one hour after each game.
"Tournament organizers appreciate AB InBev's understanding and ongoing support of our collaborative commitment to provide for everyone during the FIFA World Cup," according to the statement.
This policy change results from lengthy negotiations between FIFA president Gianni Infantino, Budweiser, and executives from Qatar's Supreme Committee for Delivery and Legacy (SC), which is organizing the World Cup, a source familiar with the negotiations told Reuters on the condition of anonymity.
"More admirers are coming from the Middle East and South Asia, where alcohol does not play such a prominent role in society," the insider said.
The belief was that the presence of alcohol would make the event less enjoyable for many fans.
According to the source, alcohol will continue to be supplied within the hospitality zones of the stadium.
According to the announcement, Budweiser will sell its non-alcoholic beer throughout the stadium.
Budweiser and the Supreme Court did not respond to Reuters' request for comment.
Since Qatar earned the 2010 World Cup hosting rights, speculation has surrounded the role of alcohol in this year's competition. Qatar is not a "dry" state, however, alcohol consumption in public areas is prohibited.
Alcohol cannot be brought into Qatar, even from the duty-free portion of the airport. Some hotels feature bars that sell alcohol.
Budweiser will continue to sell alcoholic beer at the main FIFA Fan Fest in central Doha, where it is marketed for approximately $14 per half a pint, according to a source. Some additional fan zones will sell alcohol, while others will be alcohol-free.
"Fans can choose where they wish to go without experiencing discomfort. This was previously not the case in stadiums, according to the source.