The Ministry of Municipalities and Housing issues requirements for centers and outlets selling deregistered vehicles.

Monday 08 June 2026
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The Ministry of Municipalities and Housing has issued municipal requirements for centers and outlets selling deregistered vehicles ("scrap yards"), as part of its ongoing efforts to develop the environment for activities related to out-of-service vehicles, which contributes to improving the urban fabric and reducing the manifestations of visual pollution in cities.

The ministry explained that the licensing requirements include obtaining approval from the authority supervising the activity, approval from the Civil Defense, the police, and the traffic department, in addition to submitting a valid commercial registration that includes a description of the activity, as well as the necessity of registering in the “Shumus” system.

It clarified the necessity for the activity to be within industrial areas or workshop and support services areas, inside or outside the urban area, in accordance with the approved controls and stipulated in the regulations. It also mandated the commitment to provide an area for removing hazardous materials from vehicles, in addition to finding a warehouse to store (less hazardous) materials related to the activity.

The ministry stressed that the activity must include specific elements for centers and outlets selling deregistered vehicles, including an area for sorting and dismantling vehicles, a pressing and recycling area, and facilities adapted for people with disabilities, while adhering to the requirements of the Saudi Building Code and fire prevention regulations, and providing a spare parts warehouse, with the possibility of allocating an area for dismantling and assembling parts within standards related to safety, ventilation and design.

These requirements serve as a regulatory reference for all investors in this field. The Ministry of Municipalities and Housing has called for them to be reviewed through the "Baladi" platform, and for compliance with the technical, operational and spatial requirements contained therein, to ensure full compliance and to avoid any regulatory violations.

The requirements for centers and outlets selling deregistered vehicles can be viewed by visiting the following link: https://momah.gov.sa/sites/default/files/2025-04/ashtratat%20mrakz%20wmnafdh%20alby%60%20llmrkbat%20almlghy%20tsjylha.pdf .

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The Kingdom of Saudi Arabia