Riyadh Municipality has implemented a new, pioneering model for inspection and regulatory operations aimed at strengthening the culture of compliance and increasing awareness of regulatory laws among targeted institutions and establishments. The new model is designed to incentivize the business sector and ensure the continuity of establishments in the market by reducing financial burdens on business owners. In 2018, the Riyadh Municipality launched the “Ejada” initiative, aligned with municipal transformation initiatives under the Saudi Vision 2030 program, to elevate the regulatory standards of municipal services. However, the approach of this initiative relied heavily on issuing fines as a means of generating revenue, which created financial pressure on business owners—particularly small and medium enterprises. Last year, Riyadh Mayor Prince Dr. Faisal bin Ayyaf acknowledged this old approach, clarifying that the previous system depended on issuing fines to reward inspectors and increase the revenue of the contracted operating company. He explained at the time that work was underway to develop a new model focused on improving compliance rates by incentivizing the operating company to adopt practices that raise both inspector performance and company returns. On Sunday, Prince Dr. Faisal bin Ayyaf announced the launch of the new municipal compliance program “Muthul”, which aims to enhance service quality and apply best professional standards in inspection and regulatory operations for health and commercial establishments in Riyadh, leveraging advanced digital technologies. Sustainable Development The Mayor emphasized that the program reflects the municipality’s commitment to enhancing the business environment, supporting and empowering the private sector, instilling a culture of compliance, and raising awareness of regulations. This is achieved through building effective partnerships and engaging beneficiaries to create a dynamic environment that elevates the quality of regulatory operations and services, increases satisfaction, and contributes to sustainable community development—aligned with municipal transformation initiatives under Vision 2030. Experts believe the new model will reduce financial burdens on owners of health and commercial establishments, while simultaneously motivating the private sector to increase compliance with municipal regulations. Economist Ahmed Al-Jubair told Asharq Al-Awsat that previous regulatory practices lacked warnings and awareness efforts to help prevent violations and raise compliance levels. Instead, the old system focused on monitoring infractions and imposing fines—even on small and medium enterprises. He noted that the new model announced by the Riyadh Municipality encourages establishments to cooperate with inspectors, comply with regulatory procedures, and support sustainable development within the private sector. According to Al-Jubair, the updated approach will reduce financial pressures on businesses, helping them remain active in the market rather than being pushed out due to excessive fines. Enhancing Oversight For his part, economic policy specialist Ahmed Al-Shehri told Asharq Al-Awsat that the previous “Ejada” model required development to align with the regulator’s intended objectives for oversight operations. He added that the new program enhances regulatory processes, improves service quality, increases establishment awareness, and raises compliance levels through the use of advanced technologies—all in line with municipal transformation initiatives under Vision 2030. Al-Shehri emphasized that the new approach empowers the private sector and adopts a supportive oversight style designed to help establishments achieve compliance, noting that the “Muthul” program prioritizes commitment over penalization. Over the past period, the municipality has piloted an improved regulatory model to strengthen the compliance of commercial establishments and ensure its effectiveness. It is now working to further enhance regulatory performance in alignment with Vision 2030, particularly through municipal transformation initiatives aimed at promoting transparency, integrity, and stronger regulatory governance.