Saudi program urges firms with 20+ workers to regularize labor housing

RIYADH — Saudi Arabia’s National Program for Developing Collective Housing for Individuals has urged establishments employing 20 workers or more to regularize labor housing through one of two approved regulatory pathways.The program said the measure is part of efforts to organize worker accommodation and improve the quality of residential environments, contributing to enhanced quality of life and a better urban landscape in cities across the Kingdom.Under the first pathway, establishments can obtain a collective housing license for their buildings through the Balady platform after meeting approved municipal, health and technical requirements.The second option allows establishments to contract with already licensed collective housing units, enabling companies to provide compliant accommodation without managing their own housing facilities.The program said compliance with either pathway will help regulate the distribution of worker housing within urban areas, reduce unauthorized residential use and improve adherence to municipal and health standards.It also called on establishments to promptly correct their labor housing status through the approved channels, noting that failure to comply may result in regulatory measures outlined in the program’s guidance manual.These measures include recording violations and suspending certain government services linked to the establishment.The program said the initiative is part of broader efforts to develop a more organized model for labor housing in Saudi Arabia, support the efficiency of the housing sector and improve urban planning.The initiative also supports sustainable city development.The Ministry of Municipalities and Housing leads the National Program for Developing Collective Housing for Individuals.The program includes participation from the ministries of Interior, Health, Human Resources and Social Development, Commerce, Industry and Mineral Resources, as well as the Royal Commission for Jubail and Yanbu, the Saudi Authority for Industrial Cities and Technology Zones, the Special Economic Zones Authority and the Public Health Authority (Weqaya).