Saudi Arabia Exempts Some Businesses From 24-Hour Fee

Saudi Arabia has exempted a range of businesses from the annual fee required to operate around the clock, easing costs for essential services that stay open through the night. The fee, which can reach up to SAR 100,000 no longer applies to a defined list of activities under updated regulations for round-the-clock commercial operations.

The exemptions cover fuel dispensing services at fuel stations, fuel stations and service centers located outside urban areas, hotels, hotel apartments, resorts and similar accommodation facilities, pharmacies, wedding halls, recreational rest houses, medical services, and educational institutions.

The permit itself is an additional municipal authorization that allows businesses to operate beyond normal hours, specifically covering the period from midnight to 5 a.m. It is linked directly to a valid commercial license and is canceled automatically if that license is canceled.

How to apply

Businesses can apply through the Balady electronic service for a 24-Hour Commercial Activities Permit, provided they hold a valid municipal license. Before the permit is issued, applicants must obtain approval from the relevant municipality and the police.

The updated rules were approved by the Ministry of Municipalities and Housing, which gave the minister authority to set the fee and determine which activities are exempt based on public interest and the nature of the business. Notably, the midnight-to-5 a.m. restriction does not apply during Ramadan and Eid holidays, when separate seasonal rules take effect.

The change is expected to reduce operating costs for many services that residents rely on late at night, particularly pharmacies, medical facilities and fuel stations, while giving businesses clearer rules for extended operating hours.

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