Regulating collective housing for individuals has become a priority for municipal authorities, with an electronic link that directly affects a business's commercial registration. Worker housing is no longer an internal company matter but a regulatory file with a licence, a term and inspections, and failing it can suspend the commercial registration. This is a complete guide to the requirements and licensing: who must provide housing, how the link with Qiwa works, the location and technical requirements, documents, the term, and mistakes that stall licensing.
Who Must Provide Collective Housing?
According to the National Program for Developing Collective Housing for Individuals, collective housing is mandatory for businesses with 20 or more workers, and all its licences are issued through Balady, while some licences inside industrial cities are issued by the competent authorities.
The Link With Qiwa
Each housing facility's capacity is set based on the area of the building or compound, and businesses must provide licensed housing proportionate to the number of workers registered on Qiwa. The Balady–Qiwa link verifies compliance, and the commercial registration is suspended if there is no valid licence matching the capacity. In other words, adding workers without adding licensed housing can stall the business.
Key Location Requirements
- A distance of at least 300 metres from schools and hospitals, per the updated requirements announced by the ministry.
- Respecting privacy and not overlooking neighbours, and not causing visual distortion.
- Staying away from hazardous sites, flood channels and environmentally important areas.
Balady publishes the health and technical requirements regulation for collective housing, along with the updated location and technical requirements from the Riyadh Region Municipality.
Technical Aspects Usually Inspected
| Aspect | What is reviewed |
|---|---|
| Areas and capacity | The number of residents relative to room and building area |
| Bathrooms and kitchens | Their number, cleanliness and ventilation relative to residents |
| Ventilation, lighting and air conditioning | Adequacy and safe wiring |
| Fire safety | Exits, alarms and extinguishers. Read: Civil Defense requirements for collective housing |
| Structural condition | A sound building without dangerous cracks |
Documents Required for Licensing
- The commercial registration (for businesses).
- The coordinates of the housing to be licensed.
- Property details: type, estimated capacity, area, and number of bathrooms and rooms.
- Ownership details: the deed if owned, or the lease if rented.
- Photos of the property.
Inspection and Term
The application is assigned to an engineering office qualified to inspect collective housing, and the inspection takes place within two working days of agreeing the cost, per Balady. Balady states that a collective housing licence is valid for one year, so put the renewal date in the business's calendar well before it expires.
For the detailed steps read: Converting a residential building to collective housing.
Choosing the Right Building
- Check the location before leasing: the distance from schools and hospitals, and the land use.
- Calculate the actual capacity before signing, not just the number of rooms.
- Inspect the structural condition and services; older buildings may need work before licensing.
- Make sure the building has a building permit and a sound regulatory status. Read: A building without a permit.
Mistakes That Stall Licensing
- Leasing a building in a location the location requirements do not allow.
- Housing more people than the licensed capacity.
- Neglecting safety requirements until the inspection.
- Forgetting to renew the annual licence. Read: Worker housing violations.
Frequently Asked Questions
Can rented housing be licensed?
Yes, the ownership type (owner or tenant) is specified and the lease attached.
Who inspects the housing?
The application is assigned to an engineering office qualified to inspect collective housing, and the inspection takes place within two working days of agreeing the cost, per Balady.
What happens if the number of workers increases?
Licensed housing proportionate to the number registered on Qiwa must be provided, otherwise the commercial registration may be suspended.
Is housing inside industrial cities licensed through Balady?
Some licences inside industrial cities are issued by their competent authorities.
How long is the licence valid?
One year per Balady, and it needs renewal.
Related Guides
How Abak Engineering Consultancy Helps
Abak is an accredited engineering office in Riyadh that assesses a building before you lease it, identifies the work needed for safety and capacity, and handles the collective housing licensing procedure. Details of how we can help are on our Collective (Workers') Housing Licence service page. Contact us to review your case.
Regulatory information is based on the Balady platform and the Ministry of Municipalities and Housing, and procedures may be updated by the competent authority. Last reviewed: October 2026.
