Saudi Arabia introduces new regulations for business operations

Saudi Arabia has approved a new regulatory framework governing businesses that wish to operate around the clock, introducing a licensing system that allows eligible commercial establishments to remain open 24 hours a day upon payment of an annual permit fee.

Issued by the Ministry of Municipalities and Housing following a Cabinet decision, the regulations establish clear operational requirements for businesses seeking extended trading hours. The annual permit fee can reach up to SR100,000, although the exact amount and any exemptions will be determined by the Minister of Municipalities and Housing based on the nature of the business and broader public interest considerations.

To qualify for a 24-hour operating permit, businesses must first secure approval from the relevant municipality and local police authorities. The permit will be issued electronically and linked to an existing municipal licence, providing legal authorisation for commercial activities to continue beyond standard operating hours. The regulations define the extended operating period as between midnight and 5:00 a.m., while separate seasonal rules will continue to apply during Ramadan and the Eid holidays.

The new framework also places significant emphasis on labour compliance. The Ministry of Human Resources and Social Development will oversee employment regulations for businesses operating overnight, ensuring that working conditions, employee rights and shift arrangements comply with the Saudi Labour Law and other relevant legislation, including provisions relating to women’s employment.

Businesses granted a 24-hour permit will be required to pay the prescribed annual fee and comply with all regulations issued by the relevant government authorities. However, several essential services have been exempted from the fee requirement, recognising their importance to public welfare. These include fuel stations and fuel dispensing services, service centres located outside urban areas, hotels, serviced apartments, resorts, pharmacies, healthcare facilities, educational institutions, wedding halls and recreational rest houses.

The regulations also empower municipalities to designate commercial districts and streets where round-the-clock operations will be permitted. These areas will be selected to ensure that extended business hours do not negatively affect nearby residential communities or compromise the quality of life for local residents.

In addition to setting operational standards, the framework provides businesses with legal safeguards by allowing them to appeal decisions relating to permit approvals or regulatory enforcement through municipal grievance committees or other competent authorities.

The introduction of the new regulations reflects Saudi Arabia’s continued efforts to modernise its commercial environment while balancing economic growth with effective governance. By creating a structured licensing system for 24-hour operations, the Kingdom aims to support business expansion, improve access to essential services and enhance the overall commercial experience for residents and visitors alike.