Article 20 of the Saudi Private Health Institutions Law
المادة 20 من نظام المؤسسات الصحية الخاصة
Opening a private health institution without a license is punished by closure and a ban on licensing for 6 months to 2 years, plus a fine from SAR 10,000 up to SAR 300,000 depending on the type of institution, without prejudice to any harsher penalty.
Official text (Arabic)
This article has not been amended since the law was issued.
مع عدم الإخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب كل من قام بفتح مؤسسة صحية خاصة دون ترخيص بالعقوبات التالية:
1 - إغلاق المؤسسة والحرمان من الحصول على ترخيص لمدة لا تقل عن ستة أشهر ولا تزيد على سنتين من تاريخ الإغلاق.
2 - غرامة مالية لا تقل عن (10.000) عشرة آلاف ريال، ولا تزيد على (30.000) ثلاثين ألف ريال في حالة مراكز الخدمة الصحية المساندة.
3 - غرامة مالية لا تقل عن (30.000) ثلاثين ألف ريال ولا تزيد على (100.000) مائة ألف ريال في حالة المختبرات ومراكز الأشعة ومراكز النقل الإسعافي.
4 - غرامة مالية لا تقل عن (50.000) خمسين ألف ريال، ولا تزيد على (150.000) مائة وخمسين ألف ريال في حالة العيادات والمجمعات الطبية، ومراكز جراحة اليوم الواحد.
5 - غرامة مالية لا تقل عن (100.000) مائة ألف ريال ولا تزيد على (300.000) ثلاثمائة ألف ريال في حالة المستشفيات بجميع فئاتها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 20 explained in plain English
This article sets the penalty for opening a private health institution without a license, without prejudice to any harsher penalty in another law.
First: closure and ban: closure of the institution, and being barred from obtaining a license for a period of not less than six months and not more than two years from the date of closure.
Second: the fine, by type of institution:
- Supporting health service centers: from SAR 10,000 to SAR 30,000.
- Laboratories, radiology centers and ambulance transport centers: from SAR 30,000 to SAR 100,000.
- Clinics, medical complexes and day-surgery centers: from SAR 50,000 to SAR 150,000.
- Hospitals of all categories: from SAR 100,000 to SAR 300,000.
Notes:
- The text says "shall be punished by the following penalties", so the closure and ban come together with the fine set for the type of institution.
- Each fine has a minimum and a maximum, and the competent authority determines the amount between them.
- The person addressed is "anyone who opened" the institution without a license, and the text does not limit it to the owner.
It is preceded by Article 19, which sets the cases of expiry of the license, among them its period ending without a renewal request, which shows the importance of keeping track of the license's validity. It is followed by Article 21, which punishes violations of the other provisions of the Law, apart from the violations stated in this article, by a fine of SAR 10,000 to SAR 100,000, or closure for no more than 60 days, or withdrawal of the license.
Anyone against whom a penalty of this kind has been issued would do well to consult a lawyer who specializes in administrative cases without delay to look into the available grievance routes.
Practical example
A person opened a physical therapy center in Madinah without obtaining a license. He is punished by closure of the center and being barred from a license for not less than six months and not more than two years, and by a fine between SAR 10,000 and SAR 30,000 because it is one of the supporting health service centers.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 20 of the Saudi Private Health Institutions Law
What is the penalty for opening a clinic without a license?
Closure of the clinic and a ban on obtaining a license for six months to two years, and a fine of SAR 50,000 to SAR 150,000.
What is the fine for opening a private hospital without a license?
A fine of not less than SAR 100,000 and not more than SAR 300,000, with closure and a ban on obtaining a license.
What is the penalty for opening a laboratory or radiology center without a license?
A fine of SAR 30,000 to SAR 100,000, with closure and a ban on obtaining a license for six months to two years.
More articles on Penalties for Health Institution Violations
- Article 21
Violating any provision of the Law, other than those in Article 20, is punished by one or more of: a fine of SAR 10,000 to SAR 100,000, closure for up to 60 days, or withdrawal of the license with a two-year bar on a new one.
فيما عدا المخالفات المنصوص عليها في المادة (العشرين) ومع عدم الإخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب كل من يخالف أي حكم من أحكام هذا النظام بعقوبة أو أك
- Article 22
The Medical Sharia Committee provided for in the Law of Practice of Human Medicine and Dentistry has jurisdiction over the liability of private health institutions for professional medical errors claimed as a private or public right.
تختص اللجنة الطبية الشرعية المنصوص عليها في نظام مزاولة مهنة الطب البشري وطب الأسنان بالنظر في مسؤولية المؤسسات الصحية الخاصة عن الأخطاء الطبية المهنية التي ترف
- Article 25
Committees formed by the Minister in the health affairs directorates consider violations and impose penalties, with decisions carried out only after the Minister's approval; grievances go to the Board of Grievances within 60 days, and final penalties are published at the violator's expense.
1- تكون بقرار من الوزير لجان في مديريات الشؤون الصحية ، وتتكون كل منها من ثلاثة أعضاء على الأقل، على أن يكون أحدهم استشاريًّا في المهن الطبية ويكون الثاني مستشا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.

