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The Ministry of Municipal and Rural Affairs and Housing has issued more than 1,360 licenses for collective housing projects serving the kingdom’s expatriate labor force. These licenses cover facilities that provide accommodation for roughly one million foreign workers and enforce compliance with detailed health, safety and technical specifications. The Saudi Press Agency conveyed the update on June 29 as part of a broader push to formalize standards across worker residences ranging from apartment buildings to dedicated labor compounds.
Official announcements indicate the licensing round forms a core element of the ministry’s strategy to elevate living conditions for non-Saudi employees who sustain key sectors including construction, services and manufacturing. Each approved facility must satisfy criteria that address sanitation, structural integrity and resident capacity to reduce risks associated with overcrowded or substandard housing. The ministry’s regulatory framework also incorporates periodic inspections to maintain ongoing adherence once licenses are granted.
A labor market overview published in July 2026 placed the expatriate share of Saudi employment at 78 percent, equating to 14.8 million foreign workers out of 19.03 million total jobs recorded at the close of 2025. This demographic reality underscores the scale of housing demand that the new licenses aim to address through structured provision rather than informal arrangements. Government statistics consistently show expatriates concentrated in roles that support the kingdom’s economic diversification objectives under Vision 2030.
The latest licensing initiative extends a series of measures introduced in late 2025 that required residential establishments housing 20 or more people to appoint Saudi nationals as dedicated housing supervisors. Those regulations, which set a minimum monthly salary of 5,000 riyals for the positions, applied uniformly to apartment complexes, mobile homes and other shared facilities regardless of their Nitaqat classification. Authorities provided a transition period for operators to recruit and train compliant staff while offering recruitment and training support through national human resources platforms.
Ministry directives emphasize that all licensed collective housing must integrate with wider labor and residency systems to ensure seamless record-keeping for occupants. The approach aligns with parallel reforms that have digitized many expatriate services and reduced administrative friction for both workers and employers. Data from previous compliance campaigns demonstrate that formalized housing oversight has contributed to fewer violations in sectors historically prone to regulatory gaps.
Further licensing rounds are expected as authorities continue to map demand across industrial zones and urban centers where expatriate populations remain highest. The ministry’s inventory of approved facilities will serve as a reference for future enforcement actions and policy adjustments based on occupancy trends and inspection outcomes. Updated guidelines continue to circulate through official channels to assist operators in meeting the prescribed standards.
