24-Hour Rules: Hotels, Pharmacies Exempt from Fee

Businesses across Saudi Arabia now face clearer rules for operating around the clock, with several activities exempted from the new 24-hour operating fee. Under a Cabinet decision, the annual fee for a round-the-clock permit is capped at SAR 100,000 while a defined list of activities pays nothing for this specific fee — though all still require a permit.

Hotels, hotel apartments, resorts and similar accommodation facilities are exempt from the fee, as are pharmacies and all healthcare and medical establishments, including hospitals and clinics. Other exempt activities include fuel stations, service centers outside urban areas, educational institutions, wedding and banquet halls, and recreational rest houses (istirahahs).

How the permit works

The 24-hour permit legally covers operation between midnight and 5:00 a.m. These night restrictions do not apply during Ramadan or the Eid holidays. Issuing a permit requires approval from the relevant municipality (Amanah or Baladiyah) and from security authorities, and is governed by the Municipal Licensing Procedures System and its executive regulations.

Municipalities and Baladiyah platforms decide which streets and locations are eligible, aiming to avoid negative effects on residential neighborhoods, and set operating times in line with the Saudi Labour Law and decisions on women's work. The Ministry of Municipalities and Housing sets rules for employee shift arrangements during the permitted night hours.

The exemption applies only to the 24-hour operating fee; exempt establishments must still obtain municipal commercial licenses and any sectoral approvals through their usual procedures. Separately, a temporary incentive package offers a 50% cut on selected security permit renewal fees, a 50% reduction on fines for economic establishments, a 50% cut on security system subscription fees, and a 20% reduction on mandatory company training fees — valid for three months from the decision's start.

For residents and business owners, the changes mean essential services such as pharmacies and hotels can stay open overnight without the added fee, while other operators gain a clear, regulated path to serve customers at all hours.

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