Saudi Arabia updates regulations for 24-hour business operations

RIYADH — Saudi Arabia's Ministry of Municipalities and Housing has approved new regulations governing commercial activities operating around the clock, implementing a Cabinet decision that allows businesses to operate 24 hours a day in exchange for an annual fee of up to SR100,000.Under the regulations, the minister of municipalities and housing is authorized to determine the applicable fee and identify activities exempt from payment based on the public interest and the nature of the business.Businesses seeking to operate around the clock must obtain approval from the relevant municipality as well as the police before a 24-hour operating permit is issued. The permit must be linked to a valid municipal license and is issued electronically as an additional authorization allowing businesses to operate beyond normal working hours.The permit covers operations between midnight and 5 a.m., with the restriction not applying during the holy month of Ramadan and Eid holidays, when separate seasonal regulations are in effect.The regulations assign the Ministry of Human Resources and Social Development responsibility for establishing rules governing employees working during extended operating hours, ensuring compliance with the Saudi Labor Law and related regulations.Businesses are also required to pay the prescribed annual fee for 24-hour operations in accordance with ministerial decisions.Several activities are exempt from the fee, including fuel dispensing services at fuel stations, fuel stations and service centers located outside urban areas, hotels, hotel apartments, resorts and similar accommodation facilities, as well as pharmacies, wedding halls, recreational rest houses, medical services and educational institutions, reflecting the essential nature of these services.Municipalities have been granted the authority to designate suitable streets and commercial areas where businesses may operate around the clock, provided such operations do not adversely affect residential neighborhoods or quality of life.The regulations also require operating hours to comply with Saudi labor laws and regulations governing women's employment.Permit holders must comply with all applicable laws and instructions issued by relevant government authorities. The regulations also provide businesses with the right to appeal decisions related to the implementation of the rules before grievance committees affiliated with municipalities or other competent authorities where applicable.