Saudi Arabia Mandates Licensed Housing for Companies with 20 or More Workers

On September 3, 2026, the Saudi Ministry of Municipalities and Housing announced that it has issued 1,360 collective labour housing licenses, currently accommodating approximately 1 million foreign workers.

• New housing rule: Companies with 20 or more workers must provide licensed housing.
• Platform for licenses: Applications must be made through the Balady platform.
• Strict penalties: Non-compliance leads to suspended services and fines.

New Housing Rules for Companies

Under the new regulatory framework, any company operating within Saudi Arabia employing 20 or more workers must now provide either company-owned licensed collective housing or enter into a contract with a pre-licensed labour camp. This regulation is part of the 'National Program for Development of Collective Housing for Individuals,' which aligns with the Vision 2030 'Quality of Life' program and involves coordination between 10 government departments, including municipal, health, and human resources authorities. Companies are required to obtain licenses through the Balady platform (balady.gov.sa).

Penalties and Exemptions

If a firm fails to maintain licensed housing, it faces severe administrative penalties, including the suspension of services on the Qiwa platform, the blocking of new visa quotas, restrictions on worker transfers, and the potential suspension of the company's commercial record. Fines may also be imposed for non-compliance, and authorities will conduct checks to ensure the number of registered workers matches the licensed capacity of the housing facilities. These rules do not apply to employees living in independent housing with their families who receive a housing allowance, though companies must clarify such arrangements on the Balady platform.

Worker Safety and Living Conditions

Workers are advised to confirm with their employers whether their current camps hold valid Balady licenses to ensure health and safety standards are met. The initiative seeks to improve living conditions, specifically addressing issues like overcrowding and fire safety at sites in Riyadh, Jeddah, Dammam, Khobar, and Neom. The ministry emphasizes that the mandate applies to the count of workers rather than job titles, and failure to link Balady and Qiwa records will result in regulatory action against the employer.