The Ministry of Municipal and Rural Affairs and Housing announced a new milestone in its efforts to regulate the real estate sector and improve the urban environment in the Kingdom, revealing the issuance of 1,239 new licenses for shared accommodation for individuals during the past year. This step comes as part of the Ministry's ongoing efforts to ensure a decent and safe housing environment for workers, in accordance with the highest health and regulatory standards, and to enhance the quality of life in Saudi cities.
Historical background and organizational context
Regulating collective housing is a vital issue that the Kingdom has prioritized, especially with the accelerated pace of mega-development projects launched under Saudi Vision 2030. Historically, workers' accommodations have sometimes lacked regulation and basic standards, negatively impacting the urban landscape and public health. Recognizing these challenges, the Saudi government has launched several initiatives to establish a clear regulatory framework that guarantees workers' rights to adequate housing and incentivizes the private sector to invest in developing model collective housing units. These licenses fall under the "Sakani" platform and the "Ejar" program, which aim to restructure the entire real estate market, including the collective housing sector.
The importance of the step and its expected impact
Issuing these licenses is of paramount importance on several levels. Locally, it contributes to eliminating slums and informal housing, improving the overall appearance of cities and enhancing safety and security. It also ensures a healthy working environment, positively impacting productivity and psychological well-being. Economically, regulating this sector opens promising investment opportunities for real estate developers and provides a legal framework that protects all parties. Internationally, these measures enhance the Kingdom's reputation in international forums as a country committed to upholding the highest standards of human rights and the welfare of migrant workers, aligning with its international obligations and reinforcing its position as an attractive destination for global investment and talent.
Figures and indicators that support digital transformation
The ministry's efforts were not limited to issuing licenses; they also included developing the digital infrastructure to streamline procedures. The ministry explained that the average time for issuing municipal licenses through the "Baladi" digital platform was only 24 hours, with 87% of licenses issued in less than one working day, reflecting the efficiency of the digital transformation. Regarding oversight, the monitoring coverage of municipal activities reached 95%, and the compliance rate of establishments with requirements reached 88%. These are strong indicators of the seriousness of the implementation and field follow-up to ensure adherence to approved standards, including the requirements of the Saudi Building Code.
