Saudi firms with fewer than 250 workers face mandatory housing rules from February 2027

Saudi Arabia will require establishments with fewer than 250 targeted employees to provide licensed group accommodation for their workers from February 1, 2027, as the Kingdom moves to strengthen regulation of employee housing.

The National Program for Developing Group Housing for Individuals has urged eligible establishments to regularise their worker accommodation and meet the applicable health, technical and safety requirements before the final phase of mandatory implementation begins.

The programme, chaired by the Ministry of Municipalities and Housing, oversees worker accommodation across Saudi Arabia, with the aim of improving living conditions, ensuring compliance with housing standards and enhancing the urban environment.

The period before February 1, 2027, will serve as a grace period, giving establishments time to complete the required procedures. The programme said it would support businesses in regularising their status through approved regulatory channels.

Employers can meet the requirement through two routes. They can obtain a shared accommodation licence for their own buildings through approved licensing platforms, provided the facilities meet the prescribed health, technical and safety standards. Alternatively, they can contract licensed shared accommodation providers to house their employees without operating their own residential facilities.

The programme has called on establishments to complete licensing procedures or secure contracts with approved accommodation providers within the grace period to avoid potential legal consequences for non-compliance.

The regulations are intended to curb the unauthorised use of residential buildings for worker accommodation and ensure that shared housing meets minimum standards. The programme said the framework seeks to balance the operational needs of businesses with requirements for safe and suitable living conditions for workers.

Several ministries and government agencies are members of the National Program for Developing Group Housing for Individuals, which is chaired by the Ministry of Municipalities and Housing.