Suspension of commercial registrations for those who violate the requirements for shared accommodation
The National Program for the Development of Group Housing for Individuals announced that it will take decisive measures to ensure establishments comply with group housing requirements, emphasizing that failure to provide licensed and suitable accommodation for workers will result in the suspension of the commercial registrations of violating establishments. This step comes as part of the Kingdom's efforts to raise the quality of life and improve the living environment for workers within cities, in accordance with approved health and technical standards.
A regulatory framework aimed at improving quality of life
These measures are part of the Kingdom's ongoing efforts to achieve the goals of Vision 2030, specifically the Quality of Life Program, which aims to improve the urban landscape and living environment for all residents. Historically, major cities have faced challenges related to overcrowding in workers' accommodations, negatively impacting public health and service levels. Therefore, the establishment of the National Program for the Development of Collective Housing was a strategic step to address these challenges fundamentally by imposing strict oversight and standardized criteria that guarantee the dignity of workers and the safety of the community.
Technical linkage and monitoring mechanism
The program explained that the new mechanism relies on a direct electronic link between the "Baladi" platform of the Ministry of Municipalities and Housing and the "Qiwa" platform of the Ministry of Human Resources. This link allows regulatory bodies to automatically verify establishments' compliance by comparing the number of registered workers with the licensed accommodation capacity. If a discrepancy is found or a valid license is missing, the establishment's commercial registration is automatically frozen, preventing it from operating or renewing its licenses until its status is rectified.
Expected economic and social impact
This regulation is expected to bring about a qualitative shift in both the labor market and the real estate sector. On a social level, implementing these requirements will reduce health risks and limit the spread of epidemics in densely populated residential areas. Economically, this decision will stimulate investment in real estate developments specifically for worker housing, creating new investment opportunities for the construction of well-planned residential complexes with comprehensive services.
Implementation phases and target groups
The program indicated that the new mandatory phase will begin in September 2025 and will be implemented gradually to ensure the market can adapt to the new requirements. The first phase will include large establishments, followed by medium-sized ones, and then small ones. A license will be required for establishments with 20 or more employees, and the accommodation space must be appropriate for the number of workers to prevent overcrowding.
It is worth mentioning that the National Program for the Development of Collective Housing for Individuals operates under the umbrella of the Ministry of Municipalities and Housing, and with the membership of several vital government agencies including the Ministry of Interior, Health, Human Resources, Trade, and Industry, in addition to the Royal Commissions and Industrial Cities, which reflects the integration of government efforts to control this important file.
