Riyadh, September 4, 2026: The Saudi Ministry of Municipalities and Housing has issued a compliance update regarding the accommodation of resident workers, highlighting that 1,360 licensed collective housing facilities are currently providing housing for approximately 1 million workers. This regulatory framework is particularly significant for the large Indian workforce residing in the Kingdom.
- Commercial establishments employing 20 or more workers must provide licensed collective housing or use pre-approved facilities.
- Companies are prohibited from housing employees in unregulated buildings, overcrowded flats, or non-compliant camps.
- Housing operators must follow strict municipal, technical, health, and safety standards with increased field inspections.
Under the current mandate,
commercial establishments employing 20 or more workers are required to provide licensed collective housing or enter into arrangements with pre-approved licensed housing facilities. Companies are prohibited from housing employees in unregulated buildings, overcrowded flats, or camps that fail to meet approved standards. According to a ministry update released via the Saudi Press Agency on September 3, collective housing operators must strictly adhere to municipal, technical, health, and safety standards, with authorities increasing field inspections and joint monitoring to ensure compliance. The licensing requirement, which is part of a regulatory framework introduced in September 2025, requires establishments to secure housing licenses through the Balady platform. Companies have two primary options for compliance: obtaining a collective housing license for their own residential complex or contracting with an external provider whose facility is already licensed. The housing capacity must align with the workforce numbers registered on the Qiwa platform.
Specific standards for living conditions include a minimum of 4 square meters of space per person in sleeping rooms, with a maximum occupancy of 10 people per bedroom. Facilities must provide at least one toilet for every 8 residents and common rooms for dining and rest, maintaining 0.7 square meters per person. Furthermore, buildings must be located in permitted geographic zones and possess necessary safety permits and lease documentation. If an entire building is leased by one employer, the tenant is responsible for the license; if units are rented to multiple entities, the property owner is responsible for the permit.
Non-compliance carries significant operational risks, including potential restrictions on government services such as visa quota expansions and worker transfer services via the Qiwa platform. Monitoring is conducted by a coalition of 10 government agencies, including the Ministry of Interior, the Ministry of Health, and the Ministry of Human Resources and Social Development, to curb overcrowding and enforce safety regulations. As of March 2026, data from the Indian Ministry of External Affairs indicated that approximately 2,747,551 Indian citizens reside in Saudi Arabia, many of whom are employed in construction, maintenance, manufacturing, logistics, and retail. These sectors frequently rely on company-provided accommodation, making these housing regulations critical for the welfare of the Indian workforce.
