They're not "tolerated" in Saudi Arabia. The guards have to be paid to tip off the residents when the mutawwas (the Islamic police) and the regular police are on their way for inspections. People in the compound I lived in had spare bathrooms where they stored their home-made alcohol and where they also dumped everything when the guards tipped them off. However, I was in Riyadh which is more strict than Jeddah, but Jeddah is still part of Saudi Arabia and the same council of Mutawwas sets the rules there as in Riyadh.
At the end of the day you need to know how to live in a hell hole, if you don't then you shouldn't bother living there.
It is very rare for police to enter a Western compound. This would be especially true at the ARAMCO compound, the world's largest oil company. Many Westerners make their own alcohol and are never bothered however transporting it outside the compound is risky. Incidentally, Catholic and Protestant services are held on a weekly or even more frequent basis on the ARAMCO compounds despite the fact that it is illegal. What I would like to know is EXACTLY what happened that this Brit got caught.