Short answer: a group housing licence (رخصة سكن جماعي, called “collective housing licence” on Balady) is issued on the Balady platform to the owner of a building, or to whoever leases the whole building. It proves the property can house workers up to a set capacity. If your company rents rooms or units inside a building that’s already licensed, you don’t need a licence: you need a group housing proof certificate linked to the owner’s licence. Every establishment with 20 or more workers must have one or the other.
Who has to get the licence?
The obligation sits with the employer, but the licence itself is issued to the property’s “usufruct holder”. That’s one of three people:
| Your situation | Who gets the licence |
|---|---|
| You own the building and lease units to several companies | The owner |
| You lease the whole building or compound for your workers | You, as the lessee |
| Mobile cabins inside a project site | The project contractor |
If you rent part of a licensed building, you need the proof certificate instead (covered at the end of this guide).
What triggers the rule? Headcount and housing type, not job titles. It covers the whole establishment and all its branches, even where commercial registrations are unified under one number.
What about a housing allowance? Paying workers a monthly housing allowance does not exempt the establishment from the licence requirement (Al-Watan, 29 December 2025).
Licence vs proof certificate
| Group housing licence | Group housing proof certificate | |
|---|---|---|
| Issued to | The owner, or the lessee of the whole building | A company renting units inside a licensed building |
| Proves | The property itself is licensed at a set capacity | The company’s workers live in licensed housing |
| Needs | Documents, inspection and Civil Defense approval | The owner’s licence number, your lease and the licence holder’s approval |
A lease on its own proves nothing. The property has to be licensed first; the tenant company then issues its certificate against that licence.
Documents you’ll need on Balady
Have these ready before you start:
- A valid commercial registration (CR) whose activity matches the track you’re applying under.
- The site coordinates.
- Property type, built area, number and size of rooms, and number of bathrooms.
- The title deed if you own it, or the lease if you rent it.
- Recent, clear photos of the property.
- A building completion certificate (for buildings and compounds).
- The project owner’s approval (for mobile cabins on site).
- A Civil Defense safety permit or approval.
Step by step on Balady
- Sign in to Balady with National Single Sign-On (Nafath).
- Choose your applicant type, then the “Issuing a Collective Housing License for Individuals” service.
- Enter the location, property details, deed or lease, and capacity.
- Upload the documents and submit.
- The municipality checks the site rules and either gives initial approval or sends the application back with notes.
- You have 90 days from initial approval to complete the remaining requirements.
- A technical and safety inspection follows, by the municipality or an engineering office.
- You pay the fees and the licence is issued electronically.
Capacity on the application is calculated from room areas and facilities, not from how many beds fit. Work it out first with the capacity calculator.
How long it lasts and renewal
- A licence lasts one year and can be renewed.
- Renewal is its own service on Balady.
- If your headcount grows past the licensed capacity, amending the lease doesn’t fix it. You need more licensed housing, and moving to a different building means a new licence.
- Fees are shown on the platform when you pay. We don’t quote a figure here because they depend on the property.
Industrial cities: MODON and the Royal Commission
If the housing is inside an industrial city, the licence doesn’t go through Balady:
- MODON (Saudi Authority for Industrial Cities and Technology Zones) runs its own group housing licence issue and renewal service, submitted through the Shareek platform.
- MODON industrial land is for factories only. Worker housing counts as an investment activity, so you apply for investment or residential land through Shareek.
- Jubail and Yanbu: licensing goes through the Royal Commission for Jubail and Yanbu (RCJY).
In Khobar and Dammam, each municipality sets its own restricted streets and zones on Balady. What worked in another city won’t automatically apply.
Common mistakes that slow an application
- Applying for part of a building. A licence can’t be issued for a single floor or wing; the whole building has to meet one of the approved categories.
- Counting beds instead of calculating capacity. A 24 m² net bedroom houses 6 people, not 10.
- A site that isn’t allowed. Group housing has to sit on an approved commercial street, with its entrance on a road at least 20 m wide, and at least 300 m from schools and hospitals inside the urban boundary.
- Leaving Civil Defense until last. Its approval is required before the licence issues, and delays eat into the 90 days.
- A CR with the wrong activity. Check it before you start.
If you rent: the group housing proof certificate
Most companies don’t own a building; they rent housing for their workers. In that case:
- Make sure the building is licensed, and get the group housing licence number from the owner.
- On Balady, choose “Group housing”, then “Issue a group housing proof certificate”.
- Enter the licence number, your lease number and its start and end dates.
- Enter the number of bedrooms and bathrooms and the floor area; capacity is calculated automatically.
- The request goes to the licence holder to approve, then you print the certificate.
The certificate is what links your workers’ housing to your headcount on Qiwa. Without it, Qiwa shows a shortfall even if your workers are already housed.
Leave the licensing to us
With SKN, you tell us the city, headcount and start date. We house your crew in licensed buildings and follow the proof certificate through until it matches Qiwa. Request housing or message us on WhatsApp.
Read next: Saudi worker housing regulations · Worker housing violations and fines · Worker housing for companies
FAQ
Do I need a group housing licence with fewer than 20 workers?
The current requirement applies to establishments with 20 or more workers. If you’re getting close, it’s worth lining up licensed housing before you reach it.
How long does a group housing licence take?
Balady gives you 90 days from initial approval to complete the requirements. The real timing depends on how ready the building is and on the Civil Defense approval.
Does a housing allowance exempt my company?
No. Paying a monthly housing allowance does not exempt an establishment from the group housing licence requirement.
Can I rent licensed housing instead of getting a licence?
Yes. Rent inside a licensed building and issue a group housing proof certificate against the owner’s licence. For most companies it’s the fastest route.
How long is the licence valid?
One year, renewable on Balady.
Is it different in Jubail or industrial cities?
Yes. In MODON industrial cities you apply through the Shareek platform; in Jubail and Yanbu, through the Royal Commission.
Sources: Balady: Issuing a Collective Housing License for Individuals · MOMAH: group housing proof certificate service (Arabic) · MOMAH: Health, Technical and Safety Conditions Required in Group Housing for Individuals (PDF, Arabic) · MODON: Collective Accommodation License Issuance and Renewal Service · Al-Watan: a housing allowance does not exempt (Arabic)
Last updated: 2026-10-18
A guidance summary, not legal advice.