Urban and economic boom: More than half a million municipal licenses in one year
In a significant indicator of the accelerating pace of urban and economic development in the Kingdom of Saudi Arabia, the Ministry of Municipal and Rural Affairs and Housing revealed that it issued more than 574,000 various municipal licenses during the year 2025. This huge number reflects the Ministry’s continuous efforts to regulate urban activities, improve the efficiency of procedures, and facilitate the journey for beneficiaries, including citizens and investors, in line with the ambitious goals of Saudi Vision 2030.
Broader context: Municipal licenses within the framework of Vision 2030
This achievement cannot be viewed in isolation from the historical and transformative context the Kingdom is undergoing. Within the framework of Vision 2030, which aims to diversify income sources and build a prosperous and sustainable economy, the Saudi government has prioritized improving the business environment and attracting investment. The municipal sector, as the backbone of urban development and commercial activity, has witnessed radical reforms, most notably a comprehensive digital transformation. The shift from complex paper-based procedures to unified and integrated digital platforms, such as the “Baladi” platform, has played a pivotal role in reducing bureaucracy and enabling the business sector to grow and thrive.
Details of municipal license statistics for 2025
The ministry explained that the licenses issued covered various vital sectors, thus painting a clear picture of the developmental progress in the Kingdom's cities. The statistics were distributed as follows:
- Business licenses: More than 202,000 licenses, indicating strong growth in the retail and services sector.
- Building permits: Approximately 78,000 permits, indicating a significant boom in the construction and real estate development sector.
- Building occupancy certificates: Approximately 66,000 certificates, reflecting the completion of a large number of residential and commercial projects.
- Excavation permits: Approximately 199,000 permits, which are the basis for new infrastructure and construction projects.
- Other licenses: These included 8,400 restoration licenses, 4,700 demolition licenses, 4,700 land fencing licenses, in addition to 7,000 licenses for adding and modifying building components.
Importance and expected impact on the economy and society
Issuing this enormous number of licenses has profound implications across various sectors. Locally , this translates into job creation, increased economic activity, and an improved urban landscape that enhances residents' quality of life. Furthermore, the procedural efficiency, demonstrated by reducing the average license issuance time to just 24 hours, boosts investor confidence, encourages new projects, and supports the growth of small and medium-sized enterprises (SMEs), which are a cornerstone of economic diversification.
Regionally and internationally , these figures position Saudi Arabia among the leading centers for investment and development. International investors closely monitor such indicators, which reflect the strength of the economy and the government's commitment to providing an attractive business environment. The unified and transparent digital licensing system enhances the Kingdom's competitiveness and improves its ranking in global indices, such as the Ease of Doing Business report, thus contributing to attracting more foreign direct investment and supporting the growth cycle targeted by Vision 2030.
