Suspension of commercial registrations for violators of group housing regulations 2025

In a decisive step aimed at regulating the workers' housing sector and ensuring a decent and safe living environment, the National Program for the Development of Collective Housing for Individuals affirmed its determination to implement strict measures against non-compliant establishments, up to and including suspending the commercial registrations of establishments that do not meet the requirements for collective housing for workers.

A regulatory framework aimed at improving quality of life

These moves are part of the broader framework of the Kingdom's Vision 2030, specifically within the Quality of Life Program, through which the Kingdom has sought in recent years to address the challenges associated with housing for expatriate workers. Historically, some cities have suffered from the phenomenon of informal settlements and overcrowding of workers in substandard housing, placing a strain on public services and posing health and security risks. This new regulation represents the culmination of several years of efforts to address this issue and move it from a haphazard approach to a well-organized and structured system.

Technical linkage mechanism and strict penalties

The program explained that the new mechanism relies entirely 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 and Social Development. This technology enables automated verification of establishments' compliance by comparing the number of registered workers with the licensed housing capacity. If a valid license is not available or the capacity is insufficient, the establishment's commercial registration is automatically suspended, thus halting its government and commercial transactions until the situation is rectified.

Economic and social dimensions of the decision

The impact of this decision is not limited to the regulatory aspect alone, but extends to include important economic and social dimensions:

• On the local level: The decision contributes to raising the level of public health within cities, reducing the spread of epidemics and diseases that may result from overpopulation, and also enhances the civilized appearance of Saudi cities.
• On the economic level: The decision ensures fair competition between establishments, as it prevents violating companies from reducing their operating costs at the expense of the safety and comfort of their workers, thus creating a more attractive and transparent investment environment.
• On the international level: This trend reflects the Kingdom's commitment to international standards for workers' rights, which improves the Kingdom's ranking in global indicators related to the work environment and human rights.

Details of the obligation and the timetable

The program indicated that shared accommodation is mandatory for establishments with 20 or more employees. September 2025 was set as the start date for the new mandatory phase, which will be implemented gradually, beginning with large and mega establishments, then medium-sized ones, and finally small businesses. The program urged all business owners to expedite the process of regularizing their status through the "Baladi" platform, emphasizing that the obligation applies to the main entity and all its branches, to ensure the continuity of their operations without interruption.

It is worth noting that the National Program for the Development of Collective Housing for Individuals operates under the umbrella of the Ministry of Municipalities and Housing, with the membership of sovereign and service ministries including Interior, Health, Human Resources, Trade, and Industry, in addition to royal commissions and industrial cities, which reflects the utmost importance that the state attaches to this file.