Saudi Arabia updates regulations for 24-hour business operations

Saudi Arabia has introduced new regulations that permit commercial businesses to operate around the clock, following a Cabinet decision. Businesses can now obtain a 24-hour operating permit in exchange for an annual fee, which can reach up to SR100,000.

The Ministry of Municipalities and Housing has been authorized to set the applicable fee and identify specific business activities that may be exempt from payment, based on public interest and the nature of the operation. To secure a permit, businesses must gain approval from both the relevant municipality and the police. The permit is issued electronically and is linked to a valid municipal license, serving as an additional authorization beyond normal working hours.

These regulations cover operations between midnight and 5 a.m. However, the restrictions do not apply during the holy month of Ramadan and Eid holidays, which have their own separate seasonal regulations. The Ministry of Human Resources and Social Development will establish rules for employees working extended hours, ensuring compliance with Saudi labor laws.

Several categories of businesses are exempt from the annual fee. These include fuel dispensing services at stations, fuel stations and service centers located outside urban areas, hotels, hotel apartments, resorts, pharmacies, wedding halls, recreational rest houses, medical services, and educational institutions. This exemption reflects the essential nature of these services to the public.

Municipalities are empowered to designate specific streets and commercial zones suitable for 24-hour operations, provided these activities do not negatively impact residential neighborhoods or the overall quality of life. The regulations also mandate compliance with Saudi labor laws concerning women's employment. Businesses have the right to appeal decisions related to these rules before designated grievance committees.