Saudi Arabia’s new Beneficial Owner Rules: Key regulatory developments and compliance considerations
An overview of Saudi Arabia’s New Requirements and Conditions for Red Sea Beach Operators (including Obhur)
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Market Insight 27 January 2026 27 January 2026
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Middle East
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Regulatory movement
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Hospitality & Leisure
On 31 December 2025, Saudi Arabia’s Saudi Red Sea Authority (SRSA) has issued comprehensive Requirements and Conditions for Beach Operators (the “Requirements”), creating a single, modern rulebook for the design, licensing, and day to day operation of beaches within the Kingdom’s Red Sea jurisdiction. The regime blends international best practice (e.g., GSO ISO 13009:2024 and Blue Flag criteria) with robust local rules on safety, environmental protection, and service quality – advancing the Vision 2030 objective of world class coastal tourism.
Who must comply?
The Requirements bind developers, operators, lifeguards, and users at licensed beaches across the Red Sea maritime zone (excluding military and restricted areas), ensuring every activity on shore and in water is regulated for safety and sustainability. This will be of particular interest to the popular beach resorts north of Jeddah and further afield.
Building better beaches: development standards
Before a beach opens, developers must clear multiple gates: environmental permitting from the National Center for Environmental Compliance, adherence to the Saudi Building Code (including accessibility), and any needed heritage/archaeological assessments. Designs should align with recognised quality marks such as Blue Flag and GSO ISO 13009:2024, lifting infrastructure, safety, and user experience to international levels.
Operating license: what SRSA expects
No one may operate a beach without an SRSA license. Applications (via SRSA’s electronic platform) must include:
- commercial registration; occupancy certificate;
- environmental operating permit;
- civil liability insurance;
- approved lists of licensed lifeguards and safety/rescue equipment;
- details of marine craft and permitted activities; and
- an approved beach safety plan.
To fully align with the Regulations, operators should also attach a carrying‑capacity assessment to the application file.
Licenses run for two years and are renewed based on compliance performance. SRSA may suspend or cancel licenses for non‑compliance; beyond the standard grounds (e.g., failure to renew, violation of laws), there are two specific triggers: unauthorised change of legal form and failure to register drowning/injury data on the designated platform.
What operators must do?
Licensed operators carry heavy but clear responsibilities: maintain valid municipal and environmental authorisations; keep a written beach safety plan current and practiced; staff beaches with qualified lifeguards during all operating hours; manage crowds and risks to the site’s carrying capacity; and preserve a three‑year record trail (incidents, drills, training, complaints). Operators must also integrate data with SRSA’s systems and report incidents quickly, analyse root causes, and implement fixes.
Lifeguards
Lifeguards must monitor proactively, communicate hazards (including rip currents), keep equipment mission‑ready, and execute the approved safety plan. Uniforms are red and yellow, with “Lifeguard” clearly written in Arabic and English, enhancing recognition and response.
Safety, health and security
The Requirements foreground separation of uses:
- cordon off swimming zones from areas used for boating or other maritime activities with buoys and navigational aids;
- install bilingual signage; and
- maintain first‑aid points, sanitary facilities, shaded rest areas, and compliant lighting (with backup power)
Operators must monitor weather, run evacuations when needed, and train staff and users through ongoing awareness programs.
An important addition for enforcement messaging and user education is that small watercraft near the shore must not exceed 3 knots and must keep 50 meters away from beaches and designated swimming areas.
Environment: zero tolerance for pollution
Environmental stewardship is a central pillar. Operators must ban single‑use plastics, implement waste‑segregation and recycling, prohibit the release of oils or hazardous substances from marine craft, test water and sand quality, and protect sensitive ecosystems including mangroves, corals, sea turtles, and marine mammals. Environmental incidents must be reported immediately through the prescribed channels. Maintenance of marine craft in the water is prohibited and fuelling and maintenance must follow designated standards and locations.
Events and special activities
Recreational, cultural, or sporting events on beaches require permits from the relevant authorities (e.g., Ministry of Interior, Ministry of Culture, Ministry of Sport, General Entertainment Authority, and the Ministry of Municipalities & Housing). Motorised marine sports and competitions also require environmental authorisation.
Classification and transition
SRSA will classify beaches into Golden, Silver, and Bronze Shell tiers, benchmarking accreditations, service quality, accessibility, safety, and environmental performance. Classifications are valid for two years, with periodic inspections. Existing beaches have one year to align with the new framework; SRSA will issue and update a Guideline Manual to support implementation.
Bottom line
SRSA’s Requirements hard‑wire safety, quality, and sustainability into every stage of the coastal tourism lifecycle, from concept and permitting to daily operations and events. For developers and operators, this is both a compliance mandate and a market opportunity: meet the standard, earn a higher Shell classification and help define the Red Sea as a premier, environmentally responsible beach destination.
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