This article was first published by LexisNexis Middle East on 12 September 2026. Saudi Arabia: Steps to Take as the New Entertainment Activities Law Establishes Distinct Regulatory Requirements. Reprinted with permission.
Background
Saudi Arabia has issued Saudi Arabia Cabinet Decision No. 18/1448 On the Approval of the Law on Entertainment Activities and Their Supporting Activities which regulates entertainment activities and related supporting services across Saudi Arabia.
The law has established a legal framework governing entertainment events and supporting activities. The legislation is expected to enhance regulatory oversight of the sector, clarify licensing and compliance requirements, and support the continued growth of Saudi Arabia's entertainment industry.
What entities does the law apply to?
“Saudi Arabia Cabinet Decision No. 18/1448 addresses entertainment operations with impacts including public safety, administrative coordination and efficiency, targeted at a growing sector with increasingly diverse offerings. It applies to the operation of amusement cities and entertainment centres, as well as entertainment events, entertainment shows and live performances in the Kingdom of Saudi Arabia. Importantly, it also regulates supporting activities, specifically crowd organisation and management, booking services and ticket sales. Private events and performances to which the public is not invited fall outside its scope,” states Abdullah Alzamil of Greenberg Traurig Khalid Al-Thebity.
What are the most significant changes this law brings in?
“The most significant change is not merely that entertainment businesses require regulatory approval - licensing requirements have already formed part of the General Entertainment Authority’s regulatory practice - but that licensing, supervision and enforcement are now placed within a comprehensive primary legislative framework.”
“It establishes three distinct regulatory instruments: operators of amusement cities and entertainment centres must obtain licenses; organisers of events, entertainment shows and live performances must obtain permits; and providers of supporting services must obtain accreditation certificates,” continues Alzamil.
“These approvals are required in addition to any licenses or permissions imposed by other competent authorities.”
“This distinction matters because it allows the Authority to regulate according to the nature and risk profile of an activity. A permanent entertainment facility presents different operational and safety issues from a one-off concert, while a ticketing platform or crowd-management contractor may affect several events without itself producing entertainment content,” adds Alzamil.
“More broadly, Saudi Arabia Cabinet Decision No. 18/1448 gives the Authority a complete regulatory cycle: entry controls, classification, operational standards, inspection, corrective measures, sanctions and administrative appeals. Inspectors may enter entertainment premises, examine records and data, obtain information and seek assistance from security authorities. Sanctions include warnings, fines of up to SAR 1 million, suspension or cancellation of licenses, permits, or accreditation certificates, and exclusion from entertainment or supporting activities for up to five years.”
“This statutory foundation aims to improve regulatory certainty and also signals that entertainment is no longer being treated as an emerging or exceptional industry, but as a permanent economic sector requiring mature governance and consumer protection.”
What could be the potential market and compliance impacts?
“The market and compliance impacts will depend on the implementing regulations, which will set out the framework for the practical implementation of Saudi Arabia Cabinet Decision No. 18/1448. Until application requirements, approval periods, license categories, standards and fees are specified, businesses may face uncertainty when planning events extending beyond the effectiveness date.”
“The requirement to obtain other governmental approvals may also involve engagement with multiple competent authorities. Depending on the nature of the event, organisers may need entertainment approval in addition to municipal, civil-defence, security, cultural, tourism, or other required permissions.”
“Cost is another important issue. The Authority may receive an amount of up to 10% of the value of each entertainment ticket. Depending on how the implementing regulations calculate and collect this amount, operators may pass it on to consumers, absorb it in margins or restructure ticketing and sponsorship models,” adds adds Alzamil.
“Finally, the accreditation of crowd-management and ticketing providers might raise professional standards, but it may initially narrow the supplier market. Limited numbers of accredited providers may increase costs or create bottlenecks during major entertainment seasons.”
What should operators be considering now?
“Operators might consider a regulatory-mapping exercise. Each business line would be classified as a permanent entertainment activity, a temporary event or performance, or a supporting activity. Operators may wish to review existing approvals to determine whether they will remain valid, require conversion or need renewal under the new framework,” states Alzamil.
“Businesses may also wish to identify all additional approvals applicable to their venues and events and assign internal responsibility for each regulatory work-stream. Contracts with venues, performers, promoters, sponsors and suppliers might address permitting risk, regulatory cancellation, refunds, compliance cooperation and responsibility for additional fees.”
“Operators may also wish to test ticketing models against a potential charge of up to 10%. Organisers should also consider conducting due diligence on crowd-management and ticketing providers and including contractual requirements to obtain and maintain accreditation.”
“Finally, operators may wish to prepare for inspections, updating key documents and keeping them easily available and training staff to cooperate with inspectors," adds Alzamil.
“Saudi Arabia Cabinet Decision No. 18/1448 provides the architecture for the legal framework, and the implementing regulations will provide much of the operational detail. Businesses may wish to use the transition period to put effective compliance systems in place. Companies that act during the transition period might be better equipped to meet the new requirements, obtain approvals and reduce the risk of penalties or event cancellations.”