1,360 Licenses Issued for Collective Worker Housing

Saudi authorities have issued 1,360 licenses for collective housing serving around one million foreign workers, under a new regulatory framework that sets clear standards for how companies accommodate their staff.

Under the rules, any establishment employing 20 workers or more must provide licensed collective housing for its workers, or contract alternative accommodation in licensed and approved facilities that meet the required standards.

Licensing is handled by the Ministry of Municipal, Rural Affairs and Housing through the Balady electronic platform, with applications and procedures carried out fully online. Employers log in using their Absher credentials, select their persona as an individual or establishment, and submit a request to issue a collective housing license.

Applicants must enter the housing coordinates, property type, building area, number and size of rooms, and number of restrooms, then upload photos and supporting documents such as a title deed or lease contract, commercial registration, and a valid safety permit. Where required, an engineering office is assigned to carry out an inspection at an agreed cost. The municipality or engineering office then conducts a field inspection within about two working days to verify compliance with municipal, health, technical, and safety standards, after which the license is issued electronically.

Two tracks for compliance

The framework offers two paths. In the first, a facility obtains a collective housing license for its own building via Balady after meeting the approved requirements. In the second, a facility contracts with pre-licensed housing units without managing its own accommodation, provided workers are housed in approved buildings.

Requirements focus on compliance with municipal zoning and permitted-use classification, minimum room sizes, sanitation, ventilation, safety exits, fire safety, and Civil Defense standards. Certain locations are also designated as prohibited areas for collective housing. The move aims to raise living standards for workers and bring worker accommodation under a unified, transparent regulatory umbrella.

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