The licensing requirements are set by the Permanent Executive Committee for Fuel Stations and Service Centres at the Ministry of Energy. Arab News reported that municipalities have begun enforcing the rules, which permit manual car washing only until current licences expire. Operators must then install automatic systems to renew their licences and sustain operations at fuel stations and service centres.
According to the Arab News report, this forms part of efforts to improve service efficiency and resource management. Automated systems employ recycling and controlled usage technologies to lower water and energy consumption while raising safety standards and operational performance. The regulation specifically targets car wash activities integrated with fuel retail outlets.
The Arab News article highlighted that Saudi Arabia grapples with an annual water deficit of about 3.5 billion cubic meters. Manual car washes rank among practices that strain this scarce resource most heavily. The policy therefore advances sustainability by curbing unnecessary consumption through modern technological alternatives.
Raghdan’s December 2025 guide to the car wash business in Saudi Arabia outlined a 12-month corrective period for compliance with the ban on manual operations inside fuel stations. The publication specified that only automatic mechanical systems installed per manufacturer requirements would be authorised going forward. It further detailed environmental rules such as proper water treatment before discharge into sewage systems.
The report further noted that municipal enforcement of the new licensing conditions is now under way, with non-compliant operators facing the prospect of denied renewals. “The move contributes to enhancing sustainability and preserving resources, in addition to reducing the consumption of water and energy used in washing cars,” the report quoted a source as stating. The change applies solely to car washes at fuel stations, as subsequent analyses confirmed manual services remain permitted at independent locations.
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