Saudi Arabia Exempts Key Sectors From 24-Hour Fee

Saudi Arabia has exempted a range of essential and service businesses from the annual fee charged for operating around the clock, while keeping the permit and approval requirement in place for other overnight activities. The change is tied to the updated municipal regulations for overnight operations.

The exemptions cover fuel dispensing services at fuel stations outside urban areas, hotels, hotel apartments, resorts and similar accommodation, pharmacies, healthcare services, educational institutions, wedding halls, and recreational rest houses. For non-exempt activities, the annual fee can reach up to SAR 100,000, with the exact amount set by the competent municipal authority under the current rules.

How the permit works

The 24-hour permit covers operations between 12:00 a.m. and 5:00 a.m. Businesses apply for the permit through Balady, where it is listed as a proactive electronic service linked to the commercial license. Approval requires clearance from the relevant municipality or secretariat as well as the security authority. If the commercial license is canceled, the related permits are canceled automatically.

The night-operating restriction does not apply during Ramadan or the Eid holidays. Municipalities can also designate specific streets and locations where 24-hour activity is allowed.

For residents and expats, the update means easier late-night access to services such as pharmacies and healthcare, and clearer rules for shop and restaurant owners planning to operate overnight. The latest revision removed the overnight operating fee for the listed essential and service sectors, while non-exempt businesses that wish to stay open through the night still need to obtain the permit and secure the required approvals.

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