Politics · Saudi Arabia · 20 hrs ago
Contractor licences to require 100,000 riyals in minimum capital
The Ministry of Municipalities and Housing kept a 100,000-riyal minimum capital requirement for licences to carry out contracting work.
Some feedback warned that the rule could affect small contractors and new businesses.
The ministry said the minimum is intended to ensure contractors can meet their financial obligations and deliver projects reliably.
The ministry also kept requirements to document contracts and hold a valid licence before entering tenders.
Its consultation received 72 comments from 20 participants on licensing, professional accreditation, contracts and contractors’ responsibilities.
Contractors have until January 1, 2027, to bring their businesses into line with the regulation.
The ministry said it will continue the formal steps to approve the rules, and the public will be able to check contractor licences.
Saudi Arabia’s Ministry of Municipalities and Housing is keeping a minimum capital requirement of 100,000 riyals for contractor licences.
The ministry said the requirement is intended to ensure companies’ financial solvency and improve reliability in carrying out projects.
Feedback warned that the requirement could affect small contractors and new businesses.
The ministry agreed to give contractors time to meet the rules, which are due to take effect on January 1, 2027.
It said the feedback did not include substantial concerns that would justify stopping the regulation.
- Who
- Saudi Arabia’s Ministry of Municipalities and Housing, and contractors seeking licences.
- What
- The ministry is retaining a minimum capital requirement of 100,000 riyals for contractor licences.
- When
- The regulation is due to take effect on January 1, 2027.
- Where
- Saudi Arabia.
- Why
- The ministry says the requirement will help ensure financial solvency and reliable project delivery.
Ministry of Municipalities and Housing
Feedback respondents
Minimum capital
Ministry of Municipalities and Housing
A uniform minimum of 100,000 riyals is needed to ensure financial solvency and reliability.
Feedback respondents
The requirement could affect small contractors and emerging businesses.
Participants submitted 72 pieces of feedback, covering licensing, professional accreditation, contract documentation and contractor responsibilities.
The ministry announced that the survey had closed and published its results and decisions on the regulation.
The regulation is scheduled to take effect.
- Minimum capital
- 100,000 riyals
- Feedback
- 72 submissions from 20 participants
- Effective date
- January 1, 2027
- Application processing
- Applicants are to be told the reasons for delays if processing exceeds 30 working days