New Rules Reshape Doing Business in Saudi Arabia

A wave of updated commercial, labor, and e-commerce regulations is changing how businesses are set up and run in Saudi Arabia, moving most licensing and employment processes onto national digital platforms and removing the need for in-person visits.

Commercial municipal licenses are now issued electronically through the Balady platform, with instant licensing for qualifying activities and other activities routed to the municipality for review. The same service issues both the commercial licence and the civil-defence safety permit without a trip to the municipality. Standard commercial licences are generally processed within about one to five business days once documents are complete.

Fees are calculated automatically in Balady based on activity type, area in square metres, location, signage, waste contract, and licence duration. There is no single fixed fee schedule, so the official calculator determines exact amounts. Typical fees for standard activities range from roughly SAR 100 up to several thousand riyals a year, with many guides pointing to an average band of about SAR 500–5,000 annually. Payments are made electronically via the national bill payment system using biller code 177 through bank apps or ATMs. Commercial register issuance is now fully integrated with municipal licensing and other agencies through the unified government services portal.

Big changes for workers and employers

On the labor side, all employment contracts must now be registered on Qiwa; any contract not registered is legally unenforceable as of October 2025. The kafala sponsorship system was formally abolished in October 2025, allowing workers to change employers without sponsor consent after completing their contractual obligations or notice periods.

Workers can also apply for exit/re-entry and final exit visas directly through platforms such as Qiwa and Absher, without employer permission, subject to contractual and immigration rules. Employer accounts in Qiwa are linked with Saudiization (Nitaqat), wage protection (Mudad), social insurance (GOSI), and immigration status (Muqeem), making these the primary official channels for managing work relationships.

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