Updating tobacco sales regulations in Saudi Arabia and exempting hotels

The Saudi Ministry of Municipalities and Housing announced significant updates to its regulations governing the sale of tobacco and tobacco products, a move aimed at restructuring the sector to align with urban and tourism development goals. The new regulations include an explicit exemption for "tourist hospitality facilities" from the previously 500-meter distance requirement from mosques and schools, a condition that was strictly enforced across all outlets without exception.
Details of the exception and new controls
According to the new updates, hotels, resorts, and other facilities classified within the tourism and hospitality sector can now offer their services and products without being restricted to a half-kilometer radius from educational institutions or places of worship. This amendment addresses the operational challenges previously faced by major tourist establishments, particularly those located in busy, service-oriented areas.
In contrast, the ministry maintained strict regulations regarding independent shops and traditional retail outlets, which are still obligated to meet the minimum distance requirement (500 meters) to separate them from schools and mosques, in order to protect public health and to limit the easy access of young people to these products in their educational environments.
Supporting the tourism sector and Vision 2030
This decision comes in the context of the Kingdom’s efforts to strengthen the tourism sector as one of the pillars of Vision 2030. This exception contributes to granting greater operational flexibility to hotels and tourist facilities that target visitors and tourists from around the world, which raises the competitiveness of the Saudi hospitality sector and makes it more compatible with the global standards applied in international tourist destinations.
The decision reflects the delicate balance that stakeholders are striving to achieve between regulatory and supervisory requirements on the one hand, and improving the business environment and attracting investment in the hospitality sector on the other. The distinction between "general retail outlets" and "enclosed hospitality facilities" demonstrates an understanding of the nature of the target audience in each category.
Regulatory and economic impact
This update is expected to expedite the issuance of municipal licenses for new tourist establishments that previously faced obstacles due to their proximity to public services. The decision also enhances the concept of "quality of life" by improving the urban landscape and regulating commercial activities according to their proper classifications, rather than applying a single standard to all.
The ministry confirmed that the updated texts in the regulation will be the primary and sole reference for issuing and renewing licenses, thus eliminating any previous interpretations and establishing a new phase of regulatory clarity that serves both the investor and the community.



