Saudi Arabia Updates Shared Housing Rules for 2026

Saudi Arabia has updated the regulations governing shared housing for individuals, setting stricter rules on where such buildings can be located and how they must operate. The updated guide covering health, technical, and safety requirements was launched in 2026 by the Ministry of Municipalities and Housing to unify controls for this housing type.

Under the new rules, shared housing is prohibited in specified restricted areas and neighborhoods, and such buildings may not be located on vital or tourist roads, or in locations marked as prohibited on the municipal platform Balady. Buildings must sit within commercial or commercial-residential zones, on an approved commercial street, with the main entrance facing that street.

The regulations also require shared housing to be at least 300 meters away from schools and hospitals, and away from workplaces that emit air pollutants such as gases, dust, smoke, and harmful waste. Authorities aim to prevent the concentration of individuals in specific districts by managing where these buildings are placed.

Categories and licensing

Shared housing is classified into three types: a residential building with capacity up to 500 persons, a residential complex up to 10,000 persons, and mobile cabins up to 10,000 persons. For residential buildings used as shared housing, a Saudi national must be appointed to oversee operations and ensure compliance.

Licenses run for one year and must be renewed annually through Balady, where the updated spatial and technical requirements, approved street widths, and restricted areas are published. Existing buildings already licensed as shared group housing or residential complexes are exempt from the new spatial-organization requirements, but must still meet the updated health, technical, and safety rules during operation. These properties are given a grace period of at least one year from the decision's effective date to align their operations.

The changes matter to residents and businesses that operate or rely on shared accommodation, offering clearer standards for safety, location, and licensing across Saudi cities.

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