"Municipality and Housing": More than 14,000 establishments classified according to governance standards in contracting sector establishments

Monday 08 June 2026
"البلدية والإسكان": أكثر من 14 ألف مُنشأة مُصنفة وفق معايير الحوكمة في مُنشآت قطاع المقاولات

The Ministry of Municipal and Rural Affairs and Housing revealed its initiative to increase the number of classified establishments to 70% within its work in the Coordinating Committee for the Development of the Contracting Sector, with the aim of raising competitiveness on governance standards among establishments.

The initiative aims to develop contractors’ work from individual to institutional work, by updating the technical classification standards for establishments so that the governance ratio becomes one of the technical evaluation standards for establishments; thus ensuring that establishments compete to raise the governance ratio in order to raise the classification grade; which is reflected in raising the average governance ratio of establishments in “financial data; compliance levels; risk management and quality” from 44.6% to 70%.

The initiative also aims to raise the level of competitiveness by creating greater diversity, through increasing the number of classified establishments at the level of the Kingdom’s regions, which has reached more than 14,000 establishments classified according to the governance standards in establishments, so that beneficiaries can find business implementers who have a high ability to provide products with high reliability in the accuracy and quality of work.

Since its launch, the initiative has contributed to raising the percentage of classified establishments in Jazan to 156%, Al-Jawf to 139%, Al-Baha to 136%, Asir to 111%, Tabuk to 98%, Madinah to 83%, Al-Qassim to 76%, the Northern Borders to 39%, and Hail to 30%.

It is worth mentioning that the Coordinating Committee for the Development of the Contracting Sector is chaired by His Excellency Minister Majid Al-Hogail; and includes the Ministry of Municipal and Rural Affairs and Housing, the Ministry of Commerce, the Ministry of Finance, the Ministry of Human Resources and Social Development, the Ministry of Investment, the Ministry of Economy and Planning, the Government Spending and Projects Efficiency Authority, the Saudi Contractors Authority, and the Saudi Council of Engineers; and its work mechanism aims to establish developmental foundations for the contracting sector to be a sustainable economic tributary in the national GDP; and to have an attractiveness for investment in it; through creating governance that improves the quality of work and raises the efficiency of performance.

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The Kingdom of Saudi Arabia