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Homosexuality is illegal and can be punished by imprisonment or even the death penalty. Saudi law does not honour an individual's right to privacy and officials can raid homes and intercept communication. Added to this, there are no laws against hate crimes or discrimination, so if you get beat up on the street for being gay, you're on your own. It is not unheard of for police to entrap people they suspect of being gay and of torturing and beating them up in prison.
Obviously it depends on how open you are about it, but yes, I would say it is dangerous!
That said, many expats manage to take part in illegal activities, such as drinking alcohol, within the privacy of their Western compounds. It all depends on how willing you are to take risks.
Good points of course - if there's one thing you can know about human nature, it's that people are going to find ways around laws if it suits them and there're determined to. If that weren't true there'd be no murder, drugs, prostitution, political rebellions or people running red lights! When you've got a group of like-minded people (like American/British expats) in relative seclusion (like in expat compounds) then sure, of course you can find ways around laws you don't feel morally obliged to uphold.
Still, though, if the question is "is it safe?" - you should be aware that drinking is against the law, and that therefore it does carry a certain amount of risk.
Similarly, if you come from a country where being openly gay might get some raised eyebrows but that's about it, and you're coming to a country where you could technically be put to death - that's worth knowing beforehand so you can make the mental adjustment to living a different sort of life.