The Ministry of Municipalities and Housing confirms the mandatory nature of municipal licenses and warns against engaging in illegal activities.

Monday 08 June 2026
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The Ministry of Municipalities and Housing confirmed the obligation to issue municipal licenses before engaging in any commercial or construction activity within cities, stressing that practicing any activity without a proper license is an immediate violation that exposes the person in charge of the site to penalties and fines, which may reach the closure of the site and the suspension of some services in high-risk locations.

The ministry explained that municipal licensing is not a formal procedure, but rather a regulatory obligation that preserves the rights of owners and investors, and provides a clear regulatory framework that ensures the continuity of activity and enhances market discipline and the confidence of beneficiaries. It stressed that practicing activities outside this framework exposes their owners to accountability and poses direct risks to the safety of society and the urban landscape. It indicated that unlicensed activities expose their owners to fines of up to (50,000) riyals depending on the type of violation, in addition to closure and suspension of some services in high-risk locations, when there is a threat to public safety.

The Ministry of Municipalities and Housing is intensifying its efforts to raise awareness among individuals, owners of commercial and residential activities, real estate developers and contractors about the need to comply with municipal licenses before commencing any activity, as it is a direct responsibility of the beneficiary, and a fundamental path to protect investments from penalties, regulate activities within cities, and ensure the provision of services to residents within a safe and controlled framework.

The ministry’s work also includes monitoring multiple activities, including (construction work, building restoration, commercial activities, home delivery services, tobacco product stores, and excavation work), while dealing with violating sites according to the approved regulatory procedures, up to and including fines or closure when necessary, in order to protect neighborhoods, public facilities, and passersby.

The ministry stressed the continuation of field monitoring work through secretariats and municipalities, specialized teams, and modern monitoring technologies that support direct follow-up on sites, stressing that dealing with violations is done immediately in accordance with regulations, and that the application of fines and closure is an existing and continuous procedure to protect public safety and maintain an organized urban landscape.

The Ministry of Municipalities and Housing called on all beneficiaries to obtain the official license through the "Baladi" platform.  Before engaging in any activity, to avoid fines and closure, the community was urged to report any unlicensed activity through the reporting center. (940) She emphasized that reporting is a shared responsibility that contributes to stopping violations and addressing their locations in accordance with the system.

It is worth noting that the "Balady" platform is one of the digital platforms affiliated with the Ministry of Municipalities and Housing, which allows beneficiaries, including citizens, residents, and business owners, to complete their municipal services electronically, such as issuing and renewing municipal licenses, inquiring about commercial activities, submitting reports, and tracking transactions without needing to visit the headquarters of the municipalities or secretariats. The platform's services can be accessed by visiting the link https://www.balady.gov.sa/ar .

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The Kingdom of Saudi Arabia