Complete Guide to Daily and Tourist Rental in Saudi Arabia 2026: Requirements, Licensing, Penalties, and the Difference Between Regular and Tourist Rental

Introduction: Why Does Daily Rental Now Require a License?

If you own a furnished apartment, chalet, rest house, or even a private room and are thinking about renting it out daily to tourists and visitors, you have an excellent investment opportunity. But before you start, there is a fundamental matter you must know: daily rental in Saudi Arabia has become a fully regulated activity under the supervision of the Ministry of Tourism, and practicing it without an official license is prohibited.

Starting January 1, 2025, the Ministry of Tourism mandated all booking platforms and applications to stop listing or displaying any unlicensed units. This means units without a permit no longer appear on well-known platforms. More importantly, fines for operating without a license have jumped to 250,000 SAR with permanent closure until the violation is corrected.

In this comprehensive guide, we will cover everything you need to know in detail: What is daily rental? How does it differ from regular rental? How do you obtain the license? What are the requirements and fees? And what penalties await violators? Save this article and share it with anyone interested.

First: What Is Daily (Tourist) Rental?

Daily rental, officially known as the "Private Tourism Hospitality Facility" activity, involves renting a fully furnished and equipped residential unit to provide daily overnight accommodation for tourists and visitors for a set fee. This unit could be a furnished apartment, villa, rest house, chalet, studio, or even a private room.

The Regulatory Authority

The Ministry of Tourism is the official body responsible for regulating this activity in Saudi Arabia. Minister of Tourism Ahmed Al-Khateeb issued the Private Tourism Hospitality Facility regulations under Ministerial Decision No. 2295, dated 19/5/1444 AH, requiring anyone who owns or rents a furnished residential unit providing daily overnight accommodation for tourists for a fee to obtain an official permit.

What Is the Private Tourism Hospitality Facility Permit?

It is an official document issued by the Ministry of Tourism granting its holder the right to practice daily tourist rental. Without this permit, any daily rental is considered a clear regulatory violation subject to penalties. The permit is valid for one year and renewable, with fees of 1,100 SAR annually per unit.

Types of Units Covered

The Private Tourism Hospitality Facility system covers all types of residential units rented on a daily basis: furnished apartments, villas, rest houses, chalets, studios, private rooms, camps, and any other residential unit providing daily overnight accommodation for tourists for a fee, whether permanently or temporarily.

Second: The Difference Between Regular (Annual) and Daily (Tourist) Rental

This is one of the most common questions, and many people confuse the two types. The difference between them is fundamental in terms of regulations, regulatory authority, and requirements:

Contract Duration

Regular rental (annual or monthly) relies on long-term contracts typically extending for a year or more, targeting permanent residence or extended property use. Daily rental relies on short-term arrangements ranging from a single night to a few weeks, targeting tourists, visitors, and travelers seeking temporary accommodation.

Regulatory Authority

Regular rental falls under the Ejar platform operated by the Ministry of Municipal, Rural Affairs and Housing, requiring an electronic rental contract through the platform. Daily rental falls directly under the Ministry of Tourism, requiring a Private Tourism Hospitality Facility permit through the Tourism Activity Licensing Portal.

Required License

Regular rental does not require a tourism license, though it requires contract documentation through the Ejar platform and may require a commercial registration for establishments. Daily rental mandatorily requires a Private Tourism Hospitality Facility permit from the Ministry of Tourism at 1,100 SAR annually per unit.

Cost and Income

Annual rental offers stable, consistent income but lower than daily rental. The tenant pays a fixed monthly or quarterly amount. Daily rental achieves significantly higher income but is variable, depending on seasons, events, and geographic location. Daily rates are higher compared to the daily share of monthly rent, but there are additional operational costs such as cleaning, maintenance, and guest reception.

When to Choose Daily Rental?

Daily rental suits you if your property is in a tourist location or near event venues, or in major cities like Riyadh, Jeddah, Makkah, and Madinah. It also suits you if you own a well-furnished unit and desire higher income while accepting seasonal income fluctuations. It is also an excellent option for those who own a unit they don't use permanently and wish to invest in it during periods of absence.

Third: Requirements for Obtaining the Private Tourism Hospitality Facility Permit

The Ministry of Tourism has set clear and specific requirements for obtaining the permit:

Basic Requirements

The applicant must be a Saudi national. They must possess an electronic property deed or an electronic rental contract proving the right to use the unit. There must be no objection from co-owners in a shared property building regarding daily rental — this is a very important condition especially for those owning an apartment in a residential building. The official data of the applicant and the hospitality facility must be up to date.

Permit Number Limits

The Ministry has set clear limits on the number of permits: no more than 3 permits per single property building, and no more than 8 permits total per person. However, there is an important exception: if the permit holder signs a contract with a licensed hospitality facility management service provider, they can exceed this limit. This means if you wish to manage more than 8 units, you must contract with a licensed management company.

Unit Requirements

The unit must be fully furnished, equipped, and ready for immediate occupancy. Basic safety equipment such as smoke detectors and fire extinguishers must be provided. The unit must include at least one bedroom, bathroom, and kitchen (for apartments and independent units). An official identification plaque with the permit number must be displayed at the unit entrance. Photos and descriptions used in marketing must match the actual condition of the unit.

Fourth: Steps to Obtain the Permit Electronically

Obtaining the Private Tourism Hospitality Facility permit is done entirely online through the Tourism Activity Licensing Portal under the Ministry of Tourism. Here are the detailed steps:

Step One: Access the Licensing Portal

Go to the Tourism Activity Licensing Portal at the official link tlg.mt.gov.sa. This portal handles all electronic services related to tourism licenses provided by the Ministry of Tourism.

Step Two: Select License Type

Select the required license type, which is "Private Tourism Facility" from the available options. Then click "New Permit Request."

Step Three: Accept Terms and Conditions

The terms and conditions page will appear. Read them carefully before accepting, as they contain important obligations you must comply with throughout the license period.

Step Four: Log In via National Single Sign-On

Log in through the National Single Sign-On portal (Nafath) using your national ID number and password. If you don't have an account, you can easily create one through the Nafath portal.

Step Five: Add Property Data

Enter all required property data accurately. Attach the electronic property deed or electronic rental contract. Add photos of the residential unit that reflect its actual condition. Specify the property location using a Google Maps link.

Step Six: Review Data and Submit Application

Review all entered data and attachments carefully. Confirm the accuracy of all information then click "Submit Application."

Step Seven: Pay the Fees

An invoice of 1,100 SAR will be issued per permit. Pay the required amount through the Tourism Activity Licensing Portal. After payment and verification of requirements by the Ministry, the permit is issued.

After Permit Issuance

Once the permit is issued, you can start listing your unit on licensed daily rental platforms. Make sure to add the permit number to your listing. Install the official identification plaque at the unit entrance.

Fifth: Fees and Permit Duration

Permit Fees

The Private Tourism Hospitality Facility permit fee is 1,100 SAR annually per unit. This means if you own 3 units and want to license all of them, you will pay 3,300 SAR annually.

Permit Duration

The permit is valid for one year from the date of issuance. It must be renewed before expiry to avoid violations. Renewal is done electronically through the same portal.

Are the Fees Worth Paying?

Absolutely yes. A cost of 1,100 SAR annually equals less than 100 SAR per month. In return, a single night of daily rental can generate income ranging from 200 to 1,000 SAR depending on location and season. Add to that the fine for renting without a license reaches 250,000 SAR. The equation is very clear.

Sixth: Obligations of the Permit Holder

Obtaining the permit is not the end — it's the beginning. There are obligations that must be met throughout the license period:

Cleanliness and Maintenance

The permit holder must maintain general cleanliness in all hospitality facility equipment. This includes adequate ventilation, cleanliness and safety of furniture and fixtures, and soundness of ceilings, walls, and all facilities.

Marketing and Advertising Accuracy

Photos and descriptions used in marketing must exactly match the actual condition of the Private Tourism Hospitality Facility. Any misleading photos or descriptions constitute a violation.

Displaying General Guidelines

General guidelines for facility use must be displayed in a visible location within the unit. These guidelines include check-in and check-out times, parking usage, prohibited behaviors, handling of lost items, and other instructions.

Guest Registration

A guest registration system must be used with identity documentation. Clear booking, cancellation, and payment policies must be implemented.

Data Updates

The permit holder must update their data within no more than 10 days from any change. Failure to update grants the Ministry the right to take regulatory action.

Seventh: Penalties and Fines — Scary Numbers You Must Know

The Ministry of Tourism is very serious about enforcement, and fines were significantly increased in 2025. Here are the details:

Geographic Zone System

Penalties are determined based on the geographic zone where the facility is located. The Ministry divided the Kingdom into three zones: Zone One includes Makkah, Madinah, Riyadh, Jeddah, Al Khobar, plus major project destinations (NEOM, The Red Sea, Diriyah, Amaala, Qiddiya). Zone Two includes Taif, Dammam, Abha, Jazan, Tabuk, Hail, Buraidah, Khamis Mushait, Jubail, Najran, Yanbu, Hafar Al-Batin, Al-Baha, Al-Hofuf, and Sakaka. Zone Three includes all other cities and governorates. Electronic platforms are treated as Zone One.

Fine for Operating Without a License

This is the most serious and expensive violation. The fine was raised from 50,000 SAR previously to 250,000 SAR for facilities in Zone One, with permanent closure until the violation is corrected and a license obtained. This applies to those who rent without any license, those who rent after their license expires, those who rent after their license is cancelled, and those who rent during a license suspension period.

Fine for Allowing Others to Use the License

If you allow another person to use your license, the fine is 60,000 SAR for facilities in Zone One and 55,000 SAR in Zone Two.

Fine for Preventing Inspector from Performing Duties

Ministry of Tourism inspectors have the right to enter and inspect at any time. Preventing them from performing their duties exposes you to a 10,000 SAR fine in Zone One and 7,000 SAR in Zone Two.

What Happens When Violations Are Repeated?

The system is very strict regarding repetition. When a violation is repeated within a year of the first violation that received a warning, a minimum fine of 500 SAR is applied. Penalty durations such as license suspension or temporary closure are doubled upon repetition. After repeating the violation 3 times, the committee may apply temporary closure or license suspension for up to 60 days. After the fourth repetition, the committee may permanently cancel the license.

Eighth: Licensed Daily Rental Platforms in Saudi Arabia

After obtaining your permit, you need to list your unit on licensed and approved booking platforms. Here are the most prominent platforms operating in the Saudi market:

Gathern

A leading Saudi platform specializing in chalets, rest houses, and private units. Licensed by the Ministry of Tourism and exclusively deals with licensed units.

Darz

A major Saudi daily rental platform featuring an innovative system for receiving booking offers and negotiation between guests and hosts. Licensed by the Ministry of Tourism.

Mubeet

A Saudi platform offering competitive prices especially outside major cities. Works in coordination with Saudi authorities and requires proof of licensing.

Airbnb

The famous global platform is available in Saudi Arabia. It does not directly enforce local licensing technically but has started requiring hosts to comply with local laws. Service fees are higher compared to Saudi platforms.

Important Tip

Saudi platforms like Gathern, Darz, and Mubeet offer advantages over Airbnb for the local market: lower service fees, faster Arabic-language support, full compliance with Saudi regulations, and higher trust among Saudi families.

Ninth: Golden Tips for Success in Daily Rental

For Beginner Owners

Start with one unit and learn from the experience before expanding. Get the license first before any other step. Prepare the unit at hotel quality: comfortable beds, clean furnishings, basic kitchen tools. Provide a small coffee corner and hospitality items that leave a positive impression. Prepare a small booklet with information about nearby places such as restaurants, shops, and tourist attractions.

For Professional Owners

Invest in professional photography of your unit because photos are the first thing guests see. Pay attention to reviews and guest feedback and respond to their comments quickly. Follow event and conference schedules such as "Riyadh Season" and "Spirit of Saudi Arabia" to adjust prices according to seasons. If you own more than 8 units, contract with a licensed management company. Use multiple platforms to list your unit to expand your customer base.

For Guests and Visitors

Always verify that the unit is licensed before booking. Look for the permit number in the unit listing. Book through licensed platforms to protect your rights. Read reviews from previous guests. Check the cancellation policy before booking.

Tenth: Frequently Asked Questions

Is Daily Rental Without a License Allowed?

No, it is strictly prohibited. Daily rental without a Private Tourism Hospitality Facility permit is a regulatory violation with fines reaching 250,000 SAR plus closure.

How Much Are the License Fees?

1,100 SAR annually per unit.

What Is the Maximum Number of Units I Can License?

3 permits per single property and 8 permits total. The limit can be exceeded by contracting with a licensed management company.

Can Non-Saudis Do Daily Rental?

No, the applicant must be a Saudi national.

Where Do I Apply for the Permit?

Through the Tourism Activity Licensing Portal: tlg.mt.gov.sa

What Is the Permit Validity Period?

One year, renewable.

Does Monthly Rental Need the Same Permit?

Long-term monthly rental falls under the Ejar platform and does not require a tourism hospitality facility permit. However, if you rent on a daily basis or for very short periods, you need the tourism permit.

How Do I Report an Unlicensed Unit?

You can file a report through the official Ministry of Tourism website mt.gov.sa or through the Ministry's official communication channels.

Important Links and Numbers

Ministry of Tourism: mt.gov.sa. Tourism Activity Licensing Portal: tlg.mt.gov.sa. National Unified Platform: my.gov.sa. National Single Sign-On: for registration and login. Private Tourism Hospitality Facility permit application: through the Licensing Portal. Violations and penalties schedule: available on the Ministry website.

Conclusion

Daily rental in Saudi Arabia is a wonderful investment opportunity, but it is a regulated opportunity under the supervision of the Ministry of Tourism. The rule is simple: no daily rental without a permit. The permit costs only 1,100 SAR annually, but the violation costs 250,000 SAR plus closure.

If you're an owner: get the permit through tlg.mt.gov.sa, prepare your unit to an excellent standard, and list it on licensed platforms. If you're a guest: book only through licensed platforms and verify the permit number. If you're an investor: this sector is growing rapidly with Vision 2030 and increasing tourism in the Kingdom.

Share this guide with anyone thinking about daily rental or already practicing it. Knowledge of the system is protection from violations and a guarantee for your investment success. We wish you success in your investment journey.