Saudi Arabia Exempts Key Sectors From 24-Hour Fee

Saudi Arabia has exempted a range of business activities from the annual fee required to operate 24 hours a day, in a move designed to encourage round-the-clock commercial activity. The updated regulations were issued by the Ministry of Municipalities and Housing, which may set the fee level and determine exempt activities based on public interest and business type.

The 24-hour operating permit carries an annual fee of up to SAR 100,000. However, several sectors are now exempt from paying it. These include fuel dispensing services at fuel stations, fuel stations and service centers outside urban areas, hotels, hotel apartments, resorts and similar accommodation, pharmacies, wedding halls, recreational rest houses, medical services, and educational institutions.

How the permit works

The permit covers business operations from midnight to 5:00 a.m. It does not apply during Ramadan and Eid holidays, as separate seasonal rules govern operating hours during those periods.

Before a permit is issued, a business must obtain approval from the relevant municipality as well as police and security authorities. The permit is available as an electronic service on Balady and is linked to a valid municipal license. It serves as an additional authorization tied to that license, meaning that if the commercial license is canceled, all related permits are automatically canceled as well.

The changes matter for shops, restaurants and service providers across the Kingdom that want the flexibility to serve customers late into the night. By waiving the fee for essential sectors such as pharmacies, medical services and fuel stations, the update aims to keep vital services accessible around the clock while supporting broader efforts to boost economic activity.

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