The Saudi Ministry of Municipalities and Housing has announced a new rule for companies in the country. This update brings major changes for businesses and workers. Here are the key points of the new announcement: Commercial establishments employing 20 or more workers must provide licensed collective housing, Companies must provide these facilities themselves or use certified government-approved providers, The ministry has already issued 1,360 collective housing licenses accommodating about one million expatriate workers, The initiative is managed by the National Program for the Development of Collective Housing launched in 2025.
The Saudi Ministry of Municipalities and Housing announced a new regulatory framework requiring commercial establishments employing 20 or more workers to provide licensed collective housing. Companies must either provide these facilities themselves or secure housing through certified, government-approved providers that meet established municipal, technical, health, and safety standards. According to data reported by the Saudi Gazette and Arabian Business on September 3, 2026, the ministry has already issued 1,360 collective housing licenses, which now accommodate approximately one million expatriate workers. This initiative is managed by the National Program for the Development of Collective Housing, launched in 2025 as part of the Vision 2030 Quality of Life program.
This policy shift moves away from previous informal housing arrangements, integrating worker accommodations into a formal national framework. For the estimated 16.4 million expatriates in Saudi Arabia, including approximately 2.7 million Indian nationals as per 2026 Ministry of External Affairs data, this directive carries significant implications. With expatriates comprising roughly 76 percent of the nation's workforce, according to International Labour Organization figures, the mandate is expected to impact the rental market and force smaller housing operators to comply with stricter regulatory oversight.
While the ministry has not yet specified a timeline for the closure of unlicensed camps or the exact penalties for non-compliance, officials recommend that workers seek written confirmation regarding the licensing status of their accommodations from their company HR departments or local municipal offices. As of September 3 to 4, 2026, the ministry has emphasized that this transition is critical to ensuring standardized living conditions for the migrant workforce.
