Saudi Arabia Exempts Key Sectors from 24-Hour Fee

Saudi Arabia has exempted a set of commercial activities from paying the annual 24-hour operating fee, aiming to support round-the-clock services and reduce financial burdens on essential and tourism-related sectors. The move comes as part of updated municipal licensing procedures overseen by the Ministry of Municipalities and Housing.

The 24-hour operating fee applies to commercial establishments that operate during the legally restricted window from midnight (00:00) to 5:00 a.m. For non-exempt activities, the fee is capped at 100,000 ريال سعودي Permits are issued and managed electronically through the Balady platform and are linked to the establishment's commercial license; if that license is cancelled, all related 24-hour permits are automatically cancelled.

Under the current regulations, the following activities are exempt from paying the fee, though they may still require registration or a permit: hotels, hotel apartments, resorts and similar accommodation facilities, pharmacies, healthcare and medical establishments across specialties, educational institutions, wedding halls, and recreational rest houses. Fuel stations are exempt only for fuel dispensing services and service centers located outside urban boundaries.

What businesses should know

Ramadan and Eid seasons are excluded from the midnight-to-5 a.m. restriction, allowing commercial activities to operate during these periods without the specific fee constraints. Issuing a 24-hour permit requires prior approval from the competent municipality and security authorities before it is granted.

For non-exempt businesses, the application is submitted through the Balady e-platform linked to the existing municipal commercial license. Applicants must comply with municipal zoning rules and labor regulations for night work, then obtain electronic confirmation of permit issuance. The Ministry also sets operational rules for workers during the overnight window, while municipalities designate suitable streets and locations to protect residential neighborhoods and align working hours with labor law and decisions related to women's work.

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