Localities

No more uniform fines... Commercial penalties are tailored to the "size" of the establishment

has mandated that The Saudi Food and Drug Authority ( all establishments under its supervision obtain a "Certificate of Establishment Size." This measure aims to take into account the size of economic entities when imposing fines, thereby reducing burdens and supporting investments.
The SFDA also announced a comprehensive update to its violation classification schedules, in accordance with its regulations and executive bylaws.
It explained that these amendments are based on Royal Decree No. 32043, issued on the 5th of Jumada al-Awwal, 1444 AH, which stipulates the classification of violations and penalties, and the determination of fine amounts, based on the size of the establishment and its economic activity.
clarified The Saudi Food and Drug Authority (SFDA) that this regulatory step primarily aims to achieve the highest levels of compliance, while providing tangible support to micro, small, and medium-sized enterprises (MSMEs).
It emphasized that obtaining the certificate accredited by the General Authority for Small and Medium Enterprises (SMEs) will directly contribute to considering the size of the enterprise when imposing financial penalties according to the newly adopted classification.
The SFDA concluded its circular by stressing the importance of business owners promptly obtaining this official document and providing it to inspection teams immediately upon request to ensure their rights are protected and their violations are fairly assessed.

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