Saudi Arabia has taken a new step toward tightening regulation of the entertainment sector, following the publication in the official gazette “Umm al-Qura” of the Entertainment Activities Regulation, which establishes a comprehensive legislative framework for the practice of entertainment and supporting activities.
The regulation requires investors and organizers to obtain licenses, permits, or accreditation certificates from the General Entertainment Authority before operating entertainment cities and centers or holding events and live performances, It also grants the Authority broad powers of oversight and inspection and imposes fines of up to one million riyals on violators, in a move aimed at improving service quality, enhancing visitor safety, and regulating the sector’s growth in accordance with unified standards.
The details of the regulation are as follows:
Chapter One
General Provisions
Article 1:
The following words and phrases—wherever they appear in this regulation—shall have the meanings set forth opposite each, unless the context requires otherwise:
The Authority: The General Entertainment Authority.
The Regulation: The Regulation on Recreational Activities and Supporting Activities.
The Bylaws: The Executive Bylaws of the Regulation.
The Board: The Authority’s Board of Directors.
Entertainment Activities: The operation of entertainment cities and centers, the organization of entertainment events and shows, and the staging of live performances.
Supporting Activities: Crowd control and management for entertainment activities, and the provision of reservation and ticket sales services for entertainment activities.
Licensee: A person who has obtained a license, permit, or certificate of accreditation from the Authority to engage in any of the recreational or supporting activities.
License: A document issued by the Authority authorizing the licensee to carry out the activities specified in paragraph (1) of Article (5) of the Regulation.
Classification: The process of evaluating and categorizing licensees into groups based on their technical qualifications and operational competence, and assessing the quality of recreational and supporting activities, with the aim of measuring performance and enhancing the quality of services provided in those activities.
Permit: A temporary authorization issued by the Authority allowing the licensee to carry out the activities specified in paragraph (2) of Article (5) of the Regulation.
Accreditation Certificate: An approval issued by the Authority accrediting the applicant to carry out supporting activities.
Committee: The Committee for the Review of Violations.
Article 2:
The purpose of this Regulation is to regulate, develop, and improve the quality of recreational and supporting activities.
Article 3:
1- Without prejudice to the jurisdiction of other relevant authorities, no recreational or supporting activities may be carried out unless a license, permit, or accreditation certificate has been obtained from the Authority in accordance with Article (5) of the Regulation.
2—Without prejudice to the requirements of other relevant authorities, the Council may grant an exemption from the requirement to obtain a permit.
Article 4:
1- Without prejudice to the powers of other relevant authorities, the Council—subject to the approval of the Council of Ministers—may add activities that fall under the definition of recreational and support activities as stipulated in the Regulation.
2—Private entertainment events and performances that are not open to the general public shall not be considered recreational and support activities covered by the provisions of this Regulation.
Chapter Two
Licenses, Permits, and Accreditation Certificates for Recreational and Supporting Activities
Article 5:
1—Without prejudice to other licenses, a license must be obtained prior to engaging in any of the following recreational activities:
a—Operating theme parks.
b- Operating entertainment centers.
2- Without prejudice to other licenses, a permit must be obtained prior to engaging in any of the following recreational activities:
a- Organizing recreational events.
b- Staging entertainment performances.
c- Organizing live performances.
3. A certificate of accreditation from the Authority must be obtained before engaging in any supporting activities.
4. These regulations specify the terms, conditions, controls, and procedures necessary to obtain, renew, or amend a license, permit, or certificate of accreditation, as well as the duration of each license and certificate of accreditation.
5. Without prejudice to other licenses, the regulations shall specify the time period required for the Authority to issue a decision regarding an application for a license, permit, or certificate of accreditation, as well as the renewal of any of them.
6. The Authority shall establish standards and requirements for the practice of recreational and supporting activities in coordination with the relevant authorities, and shall update them periodically.
7. The Authority may classify licensees, recreational activities, and supporting activities, and may issue classification certificates for each of them.
Article 6:
1—The Authority may, by a reasoned decision, reject an application to renew a license, permit, or accreditation certificate.
2- The Authority may suspend any recreational or supporting activities—in whole or in part, or permanently or temporarily—in any of the following cases:
a- The existence of a danger or threat to the safety or health of those attending or participating in the activities.
b. A violation of the provisions of the law or these regulations.
c. Requirements of the public interest.
3. The licensee may submit a request to the Authority to revoke, amend, or suspend the license, permit, or accreditation certificate issued to them.
4. The regulations shall specify the consequences of the revocation, suspension, or amendment of a license, permit, or accreditation certificate.
Article 7:
1—Subject to the provisions of Article (8) of the Regulation, the Board shall determine the fee for issuing, renewing, or requesting the suspension or amendment of a license, permit, or accreditation certificate.
2. The Authority may collect a fee from the sale of tickets for recreational activities not exceeding (10%) of the value of each ticket, as specified in the regulations.
Article 8:
The Council shall classify licenses, permits, and accreditation certificates into categories and establish the terms, conditions, and regulations specific to each category.
Chapter Three
Obligations of the Licensee
Article 9:
The licensee must comply with the following:
1. The provisions of the law, regulations, and decisions issued by the Authority, as well as related regulations and instructions.
2. To observe and respect public order and public decency.
3. To publicize the recreational or ancillary activity in accordance with the controls and requirements issued by the Authority, without prejudice to the relevant statutory provisions.
4. The terms, conditions, and regulations governing the license, permit, and accreditation certificate issued to the licensee.
Chapter Four
Supervision and Inspection of Recreational and Supporting Activities
Article 10:
1—The Authority shall oversee recreational and supporting activities, receive reports, and address violations of the provisions of the law and regulations.
2. Inspectors—whose appointment is by decision of the Chairman of the Board—shall detect violations of the provisions of the Law and Regulations and verify compliance with the standards and requirements for conducting recreational and supporting activities issued pursuant to the provisions of the Law; and, for this purpose—after presenting proof of their official status—they shall have the right to enter and inspect the sites and facilities of recreational and supporting activities, review records and data, receive complaints, and obtain the information they request, and they may, when necessary, seek the assistance of the competent security authorities to enable them to carry out their duties.
3- The Authority shall refer detected violations to the Committee, and the Authority may grant the violator—upon notification—a specific and sufficient period to rectify the situation; this notification shall include the date on which the violation will be referred to the Committee if the situation is not rectified.
4—It is prohibited to prevent inspectors from performing their duties as stipulated in this article. Owners of sites and facilities for recreational and supporting activities, as well as employees at the inspected location, must cooperate with the inspectors and provide them with the necessary assistance.
5. Violations of the provisions of this Regulation may be proven by all means of evidence prescribed by law.
6. The regulations shall specify the procedures that inspectors must follow in performing their duties and exercising the powers set forth in this article.
Article 11:
Without prejudice to the jurisdiction of the relevant authorities, the regulations shall specify the provisions and procedures that the Authority must adhere to in order to protect visitors who participate in recreational or supporting activities and to address any complaints they may file.
Chapter Five
Penalties
Article 12:
1- Without prejudice to any more severe statutory penalty provided for in another law, anyone who violates the provisions of this Law or these Regulations shall be punished with one or more of the following penalties:
a. A warning.
b. A fine not exceeding (one million) riyals.
c. Prohibition from engaging in any recreational or supporting activity for a period not exceeding (five) years.
d- Revocation or suspension of the license, permit, or accreditation certificate.
2- The Council shall issue a schedule specifying the classification of violations and their corresponding penalties—as provided for in paragraph (1) of this article—including their amounts and durations, taking into account the gradation of penalties. The schedule shall include violations for which the fine does not exceed (ten thousand) riyals, to be imposed immediately by the competent inspector upon detection; and the inspector may grant the violator—upon issuance of a notice—a specific and sufficient period to rectify the situation; this notice shall include the date on which the fine will be imposed if the situation is not rectified.
3. The Committee may double the penalty imposed on the violator in the event of a repeat violation, provided that the penalty does not exceed its maximum limit. A violation is considered a repeat violation if it occurs within one year of the date the previous violation was committed.
Chapter Six
Committee for Reviewing Violations
Article Thirteen:
1- By a decision of the Council, one or more committees shall be formed, each consisting of no fewer than three members, provided that the chairperson or at least one of its members is duly qualified. The Council shall, by its decision, determine the committee’s operating procedures and the remuneration of its members.
2—The committee shall be responsible for reviewing violations of the provisions of the Law and the Regulations and for imposing the penalties stipulated in Article (12) of the Law in accordance with its provisions, without prejudice to the provisions of paragraph (2) of Article (12) thereof.
3. The Authority shall notify the violator of the Committee’s decision.
4. An appeal against the Committee’s decisions may be filed with the Administrative Court within (sixty) days from the date of notification of the decision.
Chapter Seven
Final Provisions
Article 14:
The Authority may engage —when necessary—with specialized companies or technical entities to carry out certain tasks entrusted to the Authority under this Law, in accordance with regulations specified by the bylaws, without prejudice to the core tasks assigned to it under the provisions of this Law.
Article 15:
The Council shall issue the regulations within (one hundred and eighty) days from the date of publication of the Law.
Article 16:
The Law shall enter into force (one hundred and eighty) days after the date of its publication in the Official Gazette.
