Saudi Building Permits Rise 15.5% in July

The number of building permits issued in Saudi Arabia climbed to 5,828 in July 2026, up from 5,045 in June 2026, marking a 15.5% month-on-month increase,

On an annual basis, permits rose 4.4% compared with July 2025, when 5,582 permits were issued. The growth came alongside stronger construction sector activity, as the Operating Revenues Index increased 4.9% year-on-year and 1.2% month-on-month, while construction activities' operating revenues specifically rose 1.6% year-on-year.

The recovery follows a softer period earlier in the year. In May 2026, issued permits fell 33.3% year-on-year to 5,056, down from 7,584 in May 2025, and dropped 25.7% from 6,803 in April 2026.

Why it matters

Building permits are part of the municipal permit family managed through the Balady platform, which also covers demolition, road-cut, scaffolding, and site-office permits. Fees are calculated dynamically at the time of application, with no single flat rate — charges vary by activity, premises size, classification, and city.

For residential and commercial projects, building permits are priced with residential construction fees commonly around 3-4 SAR An indicative example shows a total license fee of about 2,300 SAR, made up of an 1,800 SAR area permit fee and a 500 SAR inspection fee for a typical residential project.

Separately, annual municipal licence fees for commercial activities generally range from about 100 SAR up to 5,000 SAR, depending on activity type, area, and city. Indicative ranges include 800-3,000 SAR for warehouses, 1,500-5,000 SAR for workshops and car service centres, 2,000-8,000 SAR for clinics, and 1,000-4,000 SAR for salons and beauty centres.

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