RIYADH, Saudi Arabia, June 26: Saudi Arabia has introduced sweeping new regulations aimed at restructuring the country’s retail sector, banning small grocery stores, commonly known as baqalas, from selling key products such as tobacco, fresh produce, dates, and meat.

The new rules, issued by Minister of Municipalities and Housing Majed Al Hogail, took immediate effect, though existing stores will be granted a six-month grace period to comply with the changes.

Under the directive, baqalas and kiosks are now barred from selling both regular and electronic cigarettes, shisha products, as well as fresh items including fruits, vegetables, dates, and meat. These products will now be exclusively available in larger retail formats such as supermarkets and hypermarkets. The sale of meat will further require a special licence under the new regulations.

In contrast to the restrictions, the updated regulations expand the list of permissible goods that smaller stores may sell, including items such as phone charger cables and prepaid recharge cards.

The policy also introduces new minimum space requirements: 24 square meters for grocery stores, 100 square meters for supermarkets, and 500 square meters for hypermarkets. These changes are part of broader efforts to standardize retail practices and ensure better compliance with health and safety regulations across the kingdom.

This move comes amid the Saudi government’s continued push under Vision 2030 to modernize the economy, streamline the retail sector, and curb the informal sale of regulated goods. The regulation also aligns with recent efforts to combat illegal tobacco sales and enforce stricter controls on food quality and hygiene standards.

Earlier this year, Saudi authorities launched a nationwide crackdown on unlicensed tobacco vendors and introduced digital tracking systems to monitor cigarette distribution. In addition, the Ministry of Health has advocated for tighter controls on fresh produce and meat sales in response to increasing concerns over food safety and supply chain transparency.

The newly introduced retail guidelines are expected to reshape the landscape of local commerce, impacting thousands of small retailers while encouraging investment in larger, regulated retail outlets.