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Saudi Arabia approves new tourism law to boost investments in the sector

The legislation is intended to help attract more visitors and make it easier doing business in the industry.

An ancient Nabataean carved tomb at the archaeological site in AlUla. Saudi Arabia is developing a number of major tourism projects. AFP

Saudi Arabia has approved a new law to boost the development of the tourism sector in the Arab world’s largest economy, attract more investment in the sector and increase visitor numbers.

This is part of efforts by the Saudi government to diversify the country's economy away from oil.

The new tourism law, approved by a resolution passed by the Council of Ministers this week, will establish a new regulatory environment to “attract tourism innovators and improve ease of doing business” in the kingdom, the Saudi Press Agency reported on Wednesday.

It will also streamline the licensing processes and procedures by creating a one-stop-shop platform for all tourism stakeholders as well as allow “new or experimental tourism businesses to receive special licences” to operate in the country.

The new tourism law will “drive business and investment, support innovation and attract tourists, in line with international best practices”, Saudi Arabia’s Tourism Minister Ahmed Al Khateeb, said.

“This law follows the kingdom’s recent announcement of the Regional Tourism Development Councils Regulation, a major milestone in advancing Saudi Arabia’s National Tourism Strategy,” Mr Al Khateeb said.

“The regulation will accelerate the development of tourist destinations in the various regions, including Neom, Al Soudah, the Red Sea and Diriyah Gate.”

Saudi Arabia is developing a number of tourism projects as it seeks to raise the economic contribution of the tourism sector from 3 per cent of gross domestic product to 10 per cent by 2030.

These include Neom, a $500 billion futuristic city comprising a nature reserve, coral reefs and heritage sites on a number of islands along the Red Sea, and Diriyah Gate, a seven-square-kilometre site with the At-Turaif Unesco World Heritage Site at its core.

The Red Sea Development Company — which is owned by the kingdom’s Public Investment Fund — is also building a mega-tourism project along the Red Sea coast, with 16 hotels across five islands and two inland sites as part of the first phase.

The Council of Ministers also approved a resolution that “empowers the ministry of tourism to enable sector growth”, SPA reported.

It allows the ministry to give tax and custom exceptions or reductions with related government entities, creating incentives for businesses to invest in the tourism sector.

“This new framework for collaboration with the private sector and relevant government entities will improve the quality of services in the tourism sector and promote Saudi Arabia as a top five global destination,” the report said.

“It will accelerate achieving the goals set by the kingdom’s National Tourism Strategy and Vision 2030, including 100 million new visits, tourism’s 10 per cent GDP contribution and 1 million new tourism jobs.”

Saudi Arabia's economy recovered in 2021 from the coronavirus-induced slowdown, with economic activity picking up momentum this year as oil prices rose.

Output grew 11.8 per cent in the second quarter of this year, on the back of higher oil prices and rising oil-related activities, according to flash estimates released by the General Authority for Statistics.

Saudi Arabia's travel and tourism sector will grow an average of 11 per cent annually over the next decade, making it the Middle East's fastest-growing market, the World Travel and Tourism Council said in a recent report.

By 2032, the sector’s contribution to Saudi Arabia's GDP could reach nearly 635bn Saudi riyals ($169bn), representing 17.1 per cent of the kingdom's total economy, it said.

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Saudi megaprojects 2022

The site of the $500bn Neom project in the Tabuk Province of northwestern Saudi Arabia. Photo: SCTH

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Saudi arabia aims to boost tourism sector through 10 new regulations   .

https://arab.news/wb6hg

RIYADH: Saudi Arabia has initiated 10 new policies aimed at expanding the tourism sector and protecting tourists, according to the Minister of Tourism Ahmed Al-Khateeb.   

The issued policies included laws for the sector, as well as regulations for quality control and monitoring of services.   

Al-Khateeb described the new laws as “a promising step towards a prosperous tourism future” in a tweet. 

The latest regulations ensure that the tourism sector keeps up with the renaissance that Saudi Arabia is undergoing, and mirror the ministry’s efforts to achieve the goals of the development strategy for tourism in the Kingdom.   

“These regulations would allow the ministry to strengthen cooperation with the private sector, and to offer job opportunities for the national competencies in the tourism sector,” Al-Khateeb said.  

The regulations intend to contribute to making the Kingdom more attractive for investors, as well as develop the quality of services, protect the rights of tourists, and, in addition, boost job opportunities for the younger generations. This also emphasizes Saudi Arabia’s objective to build a competitive tourism sector at a global scale.  

Al-Khateeb noted that regulations issued under the tourism law were planned in accordance with the international best practices chosen based on the index of the top 10 countries in the Travel and Tourism Competitiveness issued by the World Economic Forum.  

The ministry has granted agencies and operators in the tourism sector up to 90 days to accommodate the latest conditions and standards.   

It also requested that these organizations take these regulations into account to preserve the rights of tourists, and the quality of the services offered to keep away from being subjected to legal penalties and fines.  

“The adoption of NIPST (National Intellectual Property Strategy) supports the empowerment of innovators in various fields to build an ambitious country and a diversified and prosperous economy for the Kingdom and attracts interested researchers, entrepreneurs and innovators from Saudi Arabia and around the world towards innovation, creativity and respect of IP rights,” stated the Saudi Press Agency.  

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Saudi Arabia’s Tourism Law: Regulations, Permits, and Penalties

Saudi Arabia’s Tourism Law: Everything you need to know about regulations, permits, penalties

Practicing Tourism – Criteria and Requirements

This article emphasizes the criteria, requirements, and permits necessary for engaging in tourism activities falling within the jurisdiction of the Ministry. It includes the classification of activities and the issuance of necessary approvals, permits, and licenses.

Providing best services with compliance

Under this article, the commitment of licensees to provide the best services in adherence to approved standards is underscored.

Licensees are expected to comply with the requirements and conditions for licensing, ensuring the validity of their classification during the specified period.

Additionally, entities are mandated to register all data of their employees with the Ministry and update it in case of any changes within three months.

Financial guarantees for tourism activities

This article of the law details the financial guarantees required for tourism activities, specifying conditions, amounts, and collection procedures.

This includes obligations to the Finance Ministry, third parties, and fines.

Entities engaging in tourism activities are required to enter into an agreement with the Finance Ministry to provide the necessary financial guarantees.

Collaboration and adherence to strategy

Detailed in this article of the law is the necessity of collaboration between the private sector, local communities, and relevant government agencies to achieve the objectives outlined in the law.

Private agencies are mandated to adhere to the criteria and conditions specified in the law and are subject to the powers granted by the law to regulate and oversee tourism-related matters.

Planning and protecting tourist destinations

Outlining the process of identifying, allocating, and protecting tourist destinations, this article includes setting environmental protection standards, specifying competencies and responsibilities of government agencies, and proposing the transfer or participation of the Ministry in specific matters related to tourist destinations.

Prohibition of actions harming tourism reputation

This article prohibits actions that may undermine the reputation of tourism or cause damage to tourist destinations.

The Ministry, in coordination with the Interior Ministry, is responsible for preventing and protecting resources and destinations from encroachment or harm.

Electronic platforms and information database

This article details the establishment of electronic platforms and a comprehensive database to provide information on all aspects of tourism.

The Ministry will integrate relevant platforms, ensure international best practices, and regularly update information for stakeholders, including tourists, service providers, and investors.

Inspections and precautionary measures

This section of the article states that based on inspections by competent authorities, if a facility is found as an imminent threat to public health or safety, precautionary measures will be implemented. This could also include the closure of the facility.

In case of the facility being an accommodation, it will lead to immediate evacuation and guests will be moved to an alternative accommodation.

Licensing Fees

Outlined in this section of the article is authorization of the Ministry to determine fees for activities related to tourism licenses. It specifies that fees will be issued in accordance with the law and its regulations, ensuring transparency and fairness.

Visa Approvals for Tourists

This section outlines the procedures for issuing tourist visas, emphasizing coordination between the Ministry, the Interior Ministry, and the Foreign Affairs Ministry. This includes specifying rules and procedures for the issuance of visa approvals.

Inspection responsibilities

Established in this section of the article are the duties of inspectors appointed by the Minister, allowing them to investigate violations, review relevant conditions, and ensure that tourism activities comply with the law.

Inspectors will have the authority to receive complaints, gather data, and refer cases for further action.

Violations will be detected, recorded and referred to the committee detailed in Article 15 of the tourism law.

Committee formation

This section of the article mandates the formation of a committee, comprising at least three members, including a legal specialist.

The committee will review violations and issue penalties based on the gravity of the offense, excluding penalties stipulated in Article 16.

Remuneration of members will be determined based on the decision by the Minister and regulations will be specified.

Penalties for Violations

This article details the penalties for violating the law, including warnings, temporary or permanent closure of facilities, lowering classification, suspension or revocation of licenses, fines, and compensation for damages. The law allows for an appeal process within 60 days of receiving the penalty notice.

Penalties implementation

Detailed in this article is the committee’s authority to impose fines, doubling the amount for each day of continued violation.

Repeat offenses within one year will be considered more severe, and the decision will include the impact and gravity of the violation.

Effective Date

This article specifies that the law becomes effective 90 days from the date of its publication in the Official Gazette.

Saudi Arabia’s new Tourism Law aims to create a structured and regulated environment for the growing tourism sector, providing clear guidelines, promoting collaboration, and enforcing compliance to ensure sustainable growth and protection of the Kingdom’s tourism assets.

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The tourism industry is likely to develop and grow as the government is keen to attract both domestic and foreign tourists. Encouraging tourism from outside the Kingdom of Saudi Arabia is a relatively, new concept as tourist visas have only been available since 2013. However a number of initiatives are now in place to boost tourism, the main initiative being a new tourism law.

There has, for some time, been a need for regulation within the industry and change has been eagerly anticipated. The new Tourism Regulation promulgated by Royal Decree No. 2 dated 09/01/1436H corresponding to 25 October 2014 (“Regulation”), together with its Implementing Regulations (collectively known as  the “Tourism Law”) comes into force in May this year. It replaces the Hotel Regulation issued by Royal Decree M/27 dated 11/04/1395H corresponding to 23 April 1975.

The Tourism Law seeks to regulate the entire industry within KSA and is applicable to dealings with both domestic and foreign tourists. Furthermore, it serves as an anchor and interaction between the different sectors within the industry.  It also seeks to regulate the relationship between service providers and consumers. This will enable a conducive atmosphere for development in order for tourism to thrive within the Kingdom providing investment opportunities for Saudis and foreigners alike.

The implementation of the Tourism Law confirms the support of the government to the industry, and development of tourism generally within the Kingdom is intended to become  a key contributor to the economy, according to His Royal Highness Prince Sultan bin Salman bin Abdul Aziz, President (“President”) of the Saudi Commission for Tourism and National Heritage (“Commission”). The President further considers that the Tourism Law will create jobs and will address an increased demand for domestic tourism. It is understood that in formulating the new Tourism Law, the Kingdom has drawn on the experience of many other countries with an already well-established tourism infrastructure.

The Regulation deals with specific sectors and is implemented by seven Implementing Regulations, as follows:

• Tourist Accommodation Reservations and Marketing
• Tour Agents (including the provision of services incidental to providing tours)
• Travel and Tourism Agents (all services incidental to tourism)
• Tourist Accommodation
• Tourist Guides
• Committee for Overseeing Tourism Regulation Infringement
• Tourist Destinations

All activities that fall within the tourism industry are now regulated.  Anyone wishing to carry out business activities within the industry must be appropriately licensed by the Commission and hold all relevant approvals. With the exception of tourist guides (which are limited to Saudi Nationals), any GCC or foreign entity or person can carry out a tourism activity. This is a significant change, as previously, tourism business activities were mostly limited to Saudi nationals or Saudi-owned entities. As long as an applicant meets the criteria set out in the Implementing Regulations and has not had a previous licence revoked within the last five years, a licence is available. Licences are valid for three years, are personal to the applicant and cannot be assigned or transferred.

The role of the Commission is affirmed in the Tourism Law, as a monitoring authority that oversees prices, practices, licences and many other aspects of the industry. The Commission will be responsible for grading, supervising and conducting inspections to ensure that licensees are compliant with the Tourism Law. By enabling the Commission to set relevant grading levels, it will ensure that quality is preserved and that licensees meet internationally-set standards, thereby allowing favourable comparisons against service providers outside KSA. The Commission also functions as an enforcement authority that has the power to penalise offenders in accordance with the Tourism Law. Anyone in violation of the Tourism Law may be subject to a fine ranging from SAR 1,000 – 50,000, and or cancellation of their licence. The Commission has the power to multiply fines in the case of repeat offenders. The Tourism Law authorises the Commission to determine the criteria for the publication of any printed or electronic material including articles, books, maps, guide books, pictures or posters to promote tourism. This will ensure that a positive impression is given with regard to the Kingdom, and will encourage Saudi nationals to explore more of their own country, whilst also attracting international tourists.

Even though the Tourism Law has been approved and published, the classifications referred to in the initial five Implementing Regulations are not stated or defined within them and have not yet been made publically available. It is understood that the Implementing Regulations are a framework from which the Commission’s authorities and powers stem. The Commission will have the ability and discretion to issue and amend the classifications as and when they deem it appropriate. Hotel accommodation was previously classified in accordance with the classifications stated in the Hotel Regulation, however the replacement classifications are currently unknown.

The Commission will now have a tourism data centre that will compile all information related to the Kingdom’s tourism industry, which must be collected from licensees. This information will be shared with other relevant ministries within the Kingdom, such as the Ministry of Interior. As well as having to share relevant information with the Commission, the Tourism Law places additional obligations on licensees, including an obligation to meet Saudization requirements in respect of employees, and having to register information with regard to all employees with the Commission.  In addition, every licensee must display its services and prices in a visible location at its premises, or online at the Commission’s discretion, to ensure transparency and encourage healthy competition. There is now an emphasis on consumer protection and all consumers will have access to a complaints procedure.

In accordance with Article 5(1) of the Regulation, non GCC tourists are required to obtain a tourist visa where applicable to enter KSA. Tourist visas are a relatively new concept in Saudi Arabia as visas were usually only granted for work, business or religious purposes. Previously, few tourist visas were issued, however it is envisaged that the number will now increase.

The Tourism Law specifically deals with development of tourist destinations, both within cities and other destinations such as beaches, islands and deserts. It emphasises the need for and the ability of the Commission to coordinate with different authorities where tourist destinations are concerned. Many tourist locations are protected sites owned by the State, and the Kingdom is particularly keen to develop and promote these sites further. This will be done through direct investment from the government and through commercial arrangements with the private sector.  Saudi Arabia now has four World Heritage Sites, in addition to the holy sites of Makkah and Medina. It also has the Red Sea, which is home to an abundance of varied marine life, as well as beautiful mountains and oases.

Saudi Arabia is now officially open to foreign investment in the tourism market after years of restriction. This move is in line with the Kingdom’s strategy to increase competition in the market and to support sustainable development. The tourism sector is believed to be the second biggest potential creator of jobs within the Kingdom and there is a large emphasis within the Tourism Law on creating employment opportunities for Saudi nationals.  The President has stated that the Commission will not support any tourism or heritage project that fails to consider this. Therefore, any foreign investor hoping to take advantage of the opportunities within the Kingdom must demonstrate a viable Saudization Plan, both to the Foreign Investment Authority and the Commission. Notwithstanding this, Saudi Arabia is aiming to consolidate the tourism sector and attract foreign investment across the entire industry.

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Saudi Arabia launches 10 new regulations to enhance tourism

Ahmed Al-Khateeb, Minister of Tourism

Saudi Arabia launched today, Dec. 25, 10 new regulations to develop the tourism sector and safeguard tourists, Minister of Tourism Ahmed Al-Khateeb said in a tweet.

The regulations aim to ensure that the sector maintains pace with the renaissance that the Kingdom is witnessing in various fields. They also reflect the ministry’s efforts to achieve the goals of development strategy for tourism in the country.

The regulations aim to contribute to creating an attractive environment for investment, in which ease of business, innovation, and sustainability are taken into account, improving the quality of services, and protecting tourists’ rights, in addition to supporting the sector and boosting job opportunities for Saudi youth.

He pointed out that the issued regulations included provisions to organize tourist activities of all kinds. They also added new activities to the market and provisions to regulate oversight and inspection to ensure services quality as follows:

First , the regulations for tourism activities, includes a list of travel and tourism services, tourist advisors and tourist guide regulations, a list of private tourist hospitality facilities, tourism hospitality facilities management regulations, experimental activities list, and tourist hospitality facilities list.

Second , the regulations for quality control and services monitoring focuses on lists of tourism violations committee and tourism activities inspection.

Third , the regulations for enabling and activating tourism sector, which is related to the tourist destination development list.

The minister called on all workers in the tourism sector to adjust their conditions and benefit from the prescribed deadline, within 90 days, in line with the new requirements and standards included in the regulations, and to integrate with the current renaissance to achieve a sustainable tourism future.

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Saudi Arabia is admitting general tourists for the first time. Here are 22 things that could get you arrested or fined, like dabbing, carrying a Bible, or wearing shorts

• Saudi Arabia is finally open for mass tourism after the launch of a new tourist visa on September 27.
• The country is full of wonder, with five pristine UNESCO heritage sights, Red Sea beach resorts, and futuristic cities like Riyadh.
• But the kingdom's laws are complicated, and tourists can easily fall foul of them and receive a hefty fine, or worse.
• Here's what to look out for.
• Visit Insider's homepage for more stories.

On September 27, Saudi Arabia launched a brand-new tourist visa that lets tourists explore the country for 90 days.

It's a landmark moment for the kingdom and its stop-start tourist industry, which hopes to process 100 million tourists a year by 2030.

But the legal system in Saudi Arabia is tricky to navigate and full of pitfalls for tourists unfamiliar with life on the Arabian Peninsula or the government's version of Shariah, or Islamic law.

In September, Saudi Arabia rolled out 19 new public-decency laws , some of which, if violated, are punishable with a maximum $1,600 (6,000 riyal) fine or, in severe cases, imprisonment.

Here's what you need to know.

No dabbing.

The viral 2017 dance move was prohibited by the Saudi Interior Ministry's National Commission for Combating Drugs because of its association with drug culture.

It happened after the Saudi TV host and actor Abdallah al-Shahani was filmed dabbing at a music festival in Taif and later arrested.

Dancing at concerts — a new entertainment experience for Saudis in itself — is also prohibited.

In October 2019, a woman was charged with violating publish morality after a viral video showed her "shuffling" in her abaya and niqab at a concert in Riyadh.

Source: راصد المشاهير  , al-Weeam

No wearing shorts.

In September's new public-decency laws, men were advised not to wear shorts and to "dress modestly."

The US State Department advises male visitors to dress conservatively when visiting Saudi Arabia and not go without a shirt.

While the country is moving toward more a relaxed dress code, recently saying female travelers won't have to wear a long cloak called an abaya, it's best to err on the side of caution.

Women are still required to cover their shoulders and knees in public, the public-decency decree states.

Source: The National , Arab News

Getting drunk on the flight over, or bringing in alcohol, could land you in serious trouble.

Alcohol of any kind is banned in Saudi Arabia. Those who break the law are subject to hundreds of lashes, deportation, fines, or imprisonment. 

You may be able to access alcohol on the flight over, but if you are deemed to be intoxicated at customs, you risk arrest.

Don't bring in a drone without approval.

Importing drones for commercial or personal use is prohibited without approval from the Saudi General Authority of Civil Aviation.

So, if you're a photographer hoping to get aerial shots, best call ahead.

Source: US State Department

Don't cut in line.

The new public-decency laws say a fine of 50 riyals, or $14, will be incurred by anyone who jumps in front of someone in a queue.

Source: Arab News

You can't bring any pork into the country.

Islam prohibits consumption of pork, and as the birthplace of the religion, Saudi Arabia adheres to this principle with gusto.

This includes pork-flavored chips and snacks.

Strangely, it's forbidden to bring products containing frog meat into the kingdom too.

Gambling is in principle illegal.

While many Saudis play poker and gamble online using VPNs, the punishment for gambling can be as harsh as a six-month jail term.

Source: Blue Abaya

Being gay or transgender is illegal.

In March 2017, two transgender people were shoved in bags, beaten with sticks, and tortured to death, according to human-rights activists with the Blue Veins group.

Sex-reassignment surgery is illegal in Saudi Arabia.

Source: UK government , The Independent

Playing loud music in public is taboo and a finable offense.

It's especially important to observe this rule during each of the 20-minute prayer times, which happen five times a day. 

The fine for playing loud music is 500 riyals, or $133, outside prayer time and 1,000 riyals during prayers.

No public displays of affection.

The new public-decency code explicitly warns against public displays of affection, so be wary where your hands are.

The maximum fine for PDA is 3,000 riyals, or $800.

Lighting a barbecue or smoking a Shisha pipe in public areas.

The Ministry of Municipal Affairs announced in November that those lightig barbecues or shisha pipes in public would be slapped with a minimum fine of 100 Riyals ($27.)

Spitting in the street.

Spitting in the street is punishable with a 500 Saudi riyal ($133) fine, according to a new law from the Ministry of Municipal and Rural Affairs.

Any narcotics are illegal in Saudi Arabia, and many drug offenses are punishable by death.

Bringing a Bible into the country, or having any non-Islamic religious items on your person, can land you in trouble.

The government has hinted that personal Bibles can be brought into the country for private worship.

But waving one around in public may see the religious police report you to authorities.

Photographing a Saudi without his or her explicit permission is illegal.

The fine for taking someone's photo without permission is 1,000 riyals, or $266.

Taking up seats and utilities reserved for elderly and disabled people is a finable offense.

The fine for sitting in a priority seat is a 200 riyals, or $53.

Photographing government buildings is illegal, for national security reasons.

It's illegal to subject women and children to pranks or anything that "can scare them or put them in danger."

The advisory was included in the new set of public-decency laws in September.

It's illegal to hold two passports in Saudi Arabia.

Second passports will be confiscated by the immigration authorities if they're discovered.

Source: UK government

Be careful with outward Valentine's Day displays

Valentine's Day, a Christian occasion, has never really been permitted in Saudi Arabia, and it was formally banned in 2008.

Though, last year the ban looked to have eased, with small red tokens appearing freely across the cities of Riyadh and Jeddah and no public injunctions against Valentine's Day items reported.

Source: Business Insider

Sitting as a single man in the family area of a restaurant is also forbidden.

In a famous September 2018 case, an Egyptian man was arrested in Saudi Arabia for having breakfast with an unmarried woman in the family section of a restaurant and posting a video of it to social media. 

Some restaurants have relaxed the divide between unmarried and married, but it would be prudent to establish the restaurant's preference before you sit down.

Source: BBC , Reuters

Entering Mecca and Medinah as a non-Muslim is forbidden

Entering either Mecca or Medinah, the two holiest cities in Islam, as a non-Muslim is forbidden, so don't try to sneak in.

The punishment is a large fine, deportation, or whatever the judge decides. 

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Saudi cabinet passes new tourism law to attract tourists, encourage investments

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Saudi Arabia: New law for whistleblowers' protection takes effect, hefty fines and jail terms imposed

The system allows withholding their identities and addresses to stave off harm

Cairo: A law providing legal protection for whistleblowers, witnesses, and victims, approved earlier this year by the Saudi government, went into effect Saturday in the kingdom, which is stepping up anti-corruption efforts.

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Hailed as a new era in the Saudi justice system, the law stipulates protection measures for whistleblowers, witnesses, victims, and experts during the litigation process, including withholding their identities and addresses. Another measure ensures they are not seen while giving their testimonies before the court.

Moreover, the law allows the use of technological methods to alter voices and images as part of safeguarding them.

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Under the law, anyone who deliberately makes disclosures potentially harming those covered by this protection faces up to one year in jail and a maximum fine of SR200,000, or one of the two penalties. If perpetrated by a civil servant, the crime is deemed a corruption crime. If the perpetrator is a private sector employee, they will be liable to a maximum fine of SR5 million or deprivation of contracting with any government institution for up to five years.

Saudi public prosecution has established a center to provide justice protection for these categories to protect them from any threat, danger, or harm.

In November 2018, the Saudi advisory Shura Council endorsed a 39-article draft law for ensuring necessary protection for whistleblowers, witnesses, experts, and victims at risk of harm, threats, or assaults due to furnishing information to authorities in connection to crimes.

In recent years, Saudi Arabia has revamped the justice system as part of sweeping reforms in the country.

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Saudi Arabia gets new Tourism Law, prepares for a tourism overhaul

The Kingdom of Saudi Arabia’s tourism ecosystem is undergoing a major overhaul with the announcement of a New Tourism Law approved this week by a Council of Ministers Resolution.

The new tourism law will streamline licensing processes and procedures by creating a one-stop-shop platform for all tourism stakeholders. It will accelerate the development of an internationally competitive tourism sector in the Kingdom which will drive business, innovation, and investment.

The latest law also envisages new or experimental tourism businesses to receive special licenses and support from the ministry for achieving faster growth.

The New Tourism Law will further boost new regulatory environments in the Kingdom to attract tourism innovators and improve ease of doing business. This allows new or experimental tourism businesses to receive special licenses and support from the Ministry, allowing them to flourish. It will also streamline licensing processes and procedures by creating a one-stop-shop platform for all tourism stakeholders. Both initiatives were announced in February 2022 as part of the Ministry’s Digital Tourism Strategy.

With the new legal framework, the Ministry of Tourism will have greater control of the quality of tourism services offered within the Kingdom, ensuring the highest standards possible for both tourists and businesses while also strengthening destination development.

The law also extends the Ministry’s remit for swift collaboration with government entities to mitigate risks and manage crises.

The Council of Ministers further approved a resolution that empowers the Ministry of Tourism to enable sector growth. The resolution gives the Ministry permission to facilitate tax and custom exceptions or reductions with related government entities, creating powerful incentives for businesses to invest into the Kingdom’s growing tourism sector.

It also enables the Ministry to work collaboratively with other private sector entities to establish work plans and training programs, enabling job creation and training for Saudis and boosting human capital development in the Kingdom.

This new framework for collaboration with the private sector and relevant government entities will improve the quality of services in the tourism sector and promote Saudi as a top five global destination. It will accelerate achieving the goals set by the Kingdom’s National Tourism Strategy and Vision 2030, including 100 million new visits, tourism’s 10 percent GDP contribution and 1 million new tourism jobs.

His Excellency Ahmed Al Khateeb, Minister of Tourism, the Kingdom of Saudi Arabia, said: “In our continued work to develop, promote and enable an internationally competitive tourism sector as a key pillar of Vision 2030, we are delighted to announce the approval of the new tourism law in the Kingdom of Saudi Arabia will drive business and investment, support innovation and attract tourists, in line with international best practices.

“This law follows the Kingdom’s recent announcement of the Regional Tourism Development Councils Regulation, a major milestone in advancing Saudi Arabia’s National Tourism Strategy. The regulation will accelerate the development of tourist destinations in the various regions, including NEOM, Al-Soudah, the Red Sea, and Diriyah Gate.

“With a future-focused vision, we are working diligently to upgrade hospitality standards and provide unprecedented and enriching visitor experiences.”

The New Tourism Law was developed with reference to international best international practices identified by the top twenty countries in the World Economic Forum’s Travel and Tourism Competitiveness Index. The tourism sector’s rapid development and its integration with modern technologies is considered within the law, including the provision of a new tool which administers permits for experimental tourism activities. The tourism sector is amongst the first sectors in the Kingdom to use this regulatory tool.

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Is Airbnb coming to Saudi Arabia? The country has passed a new tourism law

Saudi citizens will now be able to rent their homes to tourists. But with caveats.

The Ministry of Tourism of Saudi Arabia has adopted a new law on tourism. It will allow the local residents to rent their houses to tourists. In this way, the government continues the renaissance that has already taken place in different aspects of the country. 

Saudi Arabia’s Minister of Tourism, Ahmed Al Khatib, noted that the new rules will make the state more attractive to investors. In addition, thanks to the new regulations, players such as Airbnb, HomeAway, etc. will be able to enter the local rental market.

What are the nuances?

• First, Saudi nationals will have to apply for permission to rent out their homes. In this case, one person will be able to get no more than three such invitations. 
• It will be necessary to confirm the right of ownership: the owner must provide the appropriate electronic document or electronic rental agreement.
• The private object of tourist hospitality (apartment, townhouse, villa, etc.) must be a part of the property, which is intended for residential or agricultural use. 
• The owner must publish photos of the property that are accurate. The same goes for the prices of all services, including any legal fees and taxes. They must be in English and Arabic.
• The property owner is forbidden to visit the property occupied by a tourist without prior arrangements with him. The only exception is an emergency situation in which the owner is accompanied by the competent authorities.

What about tourists?

• The tourist must provide a valid ID before entering the property.
• Once the tourist has checked in, it is no longer possible to force him to leave the accommodation. At least, unless required by the competent authorities.

I am responsible for editorial work. I write expert interviews and guides.

Understanding UAE’s new law on counterfeit goods and services

This new legal framework intends to safeguard consumers from deceitful practices and ensure that the UAE’s commercial environment remains fair and competitive

The UAE has updated its laws to fight against commercial fraud, enhancing protections for consumers to ensure fair competition in the market.

The Ministry of Economy (MoEc) has clarified that Federal Decree-Law No. (42) of 2023 on Anti-commercial fraud contributes to the creation of an integrated legislation that will significantly enhance consumer rights protection and combat commercial fraud in the UAE, aligning with global standards. 

This law introduces comprehensive mechanisms and regulations to prevent the trade of counterfeit, adulterated, and corrupt products and to combat counterfeiting activities, ensuring fair competition and bolstering the UAE’s global competitiveness.

Combating fraud

The MoEc, in an official statement, said it had intensified inspection campaigns to identify and penalise commercial fraud. 

In 2023 alone, 4,444 inspections uncovered 620 violations.

In a note explaining the provisions of the new law , Al Tamimi & Co, write, “The new law has expanded its definition of fraudulent goods to now include goods that don’t conform to the specifications, standards, or descriptions declared by the supplier and goods that are expired or damaged. Moreover, the law now also makes clear a definition of what a “supplier” is…This new legislation has enhanced consumer protection against fraud in all its forms through several amendments. ”

The ministry noted that the amended law enhances the efficiency of the economic sector and the competitiveness of trademark owners, while also establishing integrated mechanisms to combat counterfeit, adulterated, and corrupt products as well as services.

Abdullah Ahmed Al Saleh, undersecretary of the Ministry of Economy, highlighted that this law marks a significant milestone in the UAE’s transition towards an economic model based on fair competition and innovation. “The primary objective of this law is to enhance the regulatory and legislative landscape for the economic sector, reinforcing the business environment and governance in line with the ministry’s strategic objectives,” he said.

Here are the key points of the new law:

• Definition of fraudulent goods:
• The law now includes goods that don’t match the supplier’s declared specifications, standards, or descriptions, and those that are expired or damaged.
• A supplier is anyone involved in importing, exporting, manufacturing, selling, or storing goods and services. This comprehensive definition helps clarify responsibilities.
• Roles and responsibilities:
• The law clearly defines the duties of various entities like authorities, courts, and the new Higher Committee in handling fraud cases.
• New regulations for suppliers:
• Suppliers must now notify authorities and customers when removing prohibited goods and are obligated to replace or refund fraudulent items.
• Authorities can remove such goods at the supplier’s expense and impose penalties.
• Inspection powers:
• Judicial officers can inspect, seize, and sample goods suspected of fraud, entering non-residential premises without prior notice if necessary.
• Stricter penalties:
• Fines now range from Dhs5,000 to Dhs2,000,000, depending on the severity of the offence.
• Imprisonment can last from 6 months to 2 years, extendable in severe cases.
• Managers aware of fraudulent activities but not acting to prevent them may also face penalties, including imprisonment.
• Reconciliation mechanism:
• Offenders can settle cases by paying a fine, provided the offence does not involve food, medicine, or products that affect public health and safety.
• Appeal procedures:
• Appeals against decisions must be filed within 15 days and will be decided within 30 days. Seized goods that risk perishing must be addressed by the court within 24 hours.
• Regular inspections:
• The Ministry of Economy (MoEc) has intensified inspection campaigns to identify and penalise commercial fraud. It said that over 4,444 inspections uncovered 620 violations in the country.

Al Saleh emphasised that this law’s forward-thinking approach is designed to adapt to future economic developments, ensuring the UAE remains a leader in maintaining a robust and competitive market environment.

This new legal framework intends to safeguard consumers from deceitful practices and ensure that the UAE’s commercial environment remains fair and competitive.

Read: Abu Dhabi warns residents, tourists against fake currency dealers

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