Implementing Regulation of the Law of Municipal Licensing Procedures

Chapter 1: Definitions

Article 1: Definitions

Previous Amendments
  • The following words and phrases - wherever they appear in this Regulation - shall have the meanings indicated next to each, unless the context requires otherwise:

  • 1- Law: Law of Municipal Licensing Procedures.

  • 2- Regulation: The Implementing Regulation of the Law of Municipal Licensing Procedures.

  • 3- Minister: Minister of Municipal and Housing Affairs.

  • 4- Ministry: Ministry of Municipal and Housing Affairs.

  • 5- Secretariat/ Municipality: An entity affiliated with the Ministry, within whose supervisory jurisdiction the licensed site is located, and which is entrusted with the necessary licensing services.

  • 6- Municipal License: A written approval from the Secretariat/ Municipality to a natural or legal person to build or open a place for any activity at a specified location, in accordance with the conditions specified in the Law and the Law of Municipalities and Rural Areas and its related regulations, including commercial licenses and construction licenses.

  • 7- Construction License: A regulatory document issued by the Secretariat/ Municipality through the electronic platform, in accordance with the requirements, conditions, and regulations approved by the Ministry, including (but not limited to) "building permit, demolition permit, restoration permit, modification of building components permit, site preparation permit, fencing permit, correction of existing building status permit, fencing of vacant land permit... and any type of construction licenses approved by the Ministry."

  • 8- Commercial License: A regulatory document issued by the Secretariat/ Municipality through the electronic platform, including approval to practice the commercial activity in accordance with the conditions and requirements regulating it.

  • 9- Competent Government Agency: Any ministry, authority, public institution, or equivalent, competent - according to its regulations - to supervise a specific activity that requires a license to practice from that entity.

  • 10- Electronic Platform: The unified sectoral digital platform for providing municipal services under the supervision of the Ministry (Balady), replacing coordination offices.

  • 11- Utilization Document: A document issued by the competent government agencies authorizing the disposition and utilization of real estate according to the governing rules, which must be updated and complete in data, for example: a deed issued by the Ministry of Justice, a housing contract, a documented investment contract, a documented lease contract, or other documents accepted by the Ministry.

  • 12- Place: A site holding a municipal license where an activity related to the competencies of the Secretariat/ Municipality as prescribed by law is practiced.

  • 13- Fees: Fees prescribed according to the Municipal Services Fees Regulation.

  • 14- Municipal Fines: Penalties listed in the penalty schedule for municipal violations approved by the Minister and published on the Ministry's website.

  • 15- Electronic Forms: A set of data and fields required to be completed to issue the municipal license on the electronic platform.

  • 16- Official Document: An official document issued by a competent government entity.

  • 17- Saudi Building Code: A set of conditions, requirements, and related systems, implementing regulations, and annexes concerning construction and building to ensure safety and public health.

  • 18- Urban Identity Design Guidelines: Architectural conditions and guides issued and derived from heritage and natural components, including design, materials, colors, and other components used in urban works, applied within a specific geographic scope.

  • 19- Survey Decision: An approved technical document showing the geographic location of the property, its boundaries, dimensions, area, and coordinates of its corners according to a unified geodetic survey reference.

  • 20- Commercial License Renewal: Approval by the Secretariat/ Municipality to continue the commercial license and practice the activity for a specified period.

  • 21- Construction License Renewal: Approval by the Secretariat/ Municipality to continue the construction license for a specified period.

  • 22- Commercial License Amendment: Approval by the Secretariat/ Municipality to amend the commercial license and its ownership, including adding a new activity, deleting it, modifying its data, or transferring ownership after fulfilling the conditions and requirements for its practice based on the license holder's request.

  • 23- Construction License Amendment: Approval by the Secretariat/ Municipality to amend the construction license and its ownership, including deleting or adding building components and owner data.

  • 24- Commercial License Suspension: Suspension of activity practice by the Secretariat/ Municipality while keeping the license valid until the reasons for suspension are removed.

  • 25- Construction License Suspension: Suspension of work under the construction license by the Secretariat/ Municipality while keeping the license valid until the reasons for suspension are removed.

  • 26- License Cancellation (Construction/ Commercial): The competent authority in the Ministry's revocation of the municipal license.

  • 27- Engineering Office: The engineering office accredited by the Ministry according to the requirements, conditions, and regulations approved by it.

  • 28- Completion Center: A center providing services to real estate developers for residential projects.

  • 29- Occupancy Certificate: A permit to occupy the building issued by the Secretariat/ Municipality after verifying its compliance with the Saudi Building Code requirements.

  • 30- Establishment Document: An identification document for the establishment issued by a government entity indicating its basic data and the economic activities it is permitted to practice, such as: commercial register, unified national number, or other documents accepted by the Ministry.

  • 31- Settlements: Urban clusters that have not been assigned an urban boundary.

  • 32- Preliminary Approval for Commercial License: Approval by the Secretariat/ Municipality to start preparing the site for practicing the activity according to the required conditions, and the holder is not entitled to start practicing the activity except after obtaining a commercial license.

  • 33- Commercial Licenses for Temporary Activities: Commercial licenses for activities limited in duration not exceeding 180 days maximum, including, for example, seasonal licenses and events.

  • 34- Permit: A regulatory document issued by the Secretariat/ Municipality through the electronic platform as a secondary or limited license linked to a valid municipal license, including approval to practice an additional service inside or outside the site scope according to the conditions and requirements regulating it.

  • 35- Added Activities: Activities required to be added to the main activity in the commercial license.

  • 36- Commercial Licenses of Different Nature: Commercial licenses serving specific categories without having a fixed special place, whether the license holder is settled at a certain location he is accustomed to or is moving from place to place according to the instructions and conditions regulating these types of licenses.

  • 37- Mobile Merchant: A peddler who displays his goods or trade services for sale in permitted public places without having a fixed special place, whether settled at a certain location he is accustomed to or moving from place to place.

  • 38- Mobile Cart: A means used to display goods or provide permitted services according to the conditions and requirements regulating it.

  • 39- Mobile Cart License: A commercial license authorizing its holder to practice the activity through the mobile cart.

  • 40- Committee: A committee or several committees formed by a decision of the Minister to consider complaints and appeals arising from the application of the Law of Municipal Licensing Procedures and its Implementing Regulation.

  • 41- Electronic Platform for Appeals: A digital platform to manage all appeal processes at the level of secretariats and municipalities.

Chapter 2: Construction Licenses

Article 2: Requirements for Issuing Construction Licenses

  • The application for the construction License shall be submitted according to the following conditions and requirements:

  • 1- The applicant for the License must be a natural or legal person.

  • 2- There must be a usufruct document.

  • 3- The site must be on land within an approved organizational plan or as stated in the updated Implementing Regulation for urban scope rules until the year 1450 AH - after the Trustee's approval - or sites that have a specific provision issued regarding them.

  • 4- The sites must not be in areas halted by a legal document according to its content.

  • 5- There must be a survey decision for the site.

  • 6- A no-objection certificate approved by the Ministry for housing projects under its jurisdiction in case there is no approved organizational plan.

  • 7- Approval from the Civil Defense according to the nature and type of the construction License.

  • 8- Contracting with an engineering office according to the nature and type of the construction License service.

  • 9- Any other requirements for types of construction Licenses approved by the Ministry according to the nature and type of the construction License service.

  • 10- Payment of municipal fees and fines for construction Licenses - if any -.

Article 3: Mechanisms for Submitting Construction License Applications

  • Taking into account the provisions mentioned in Article Two of this Regulation, the following steps shall be followed in issuing the construction license:

  • 1- The construction license application shall be submitted according to the approved procedures via the electronic platform by the license holder or by a delegate from engineering offices, depending on the nature and type of the construction license.

  • 2- The applicant shall complete the necessary procedures and requirements for issuing, amending, or renewing the construction license on the electronic platform, including coordination with other governmental and service entities if the nature of the project requires it.

  • 3- The procedures for construction licenses for real estate developers can be completed through the Completion Center depending on the nature of the project.

  • 4- The application for construction license services shall be automatically canceled if the applicant fails to complete the service requirements within (15) fifteen working days from the date of the application before the issuance of the payment invoice, and the application shall be automatically canceled if the invoice is not paid within (10) ten working days from its issuance.

Article 4: Renewal, Amendment, Suspension, and Cancellation of Construction Licenses

  • The renewal, amendment, cancellation, and suspension of the construction license shall be in accordance with the following:

  • 1- The construction license shall be renewed by the municipality/secretariat based on a request from the license holder through the electronic platform, after fulfilling the service requirements - and obtaining the approval of the Civil Defense according to the nature and type of the construction license - and paying the municipal fees and fines for the construction license - if any -.

  • 2- The construction license shall be amended by the municipality/secretariat based on a request from the license holder through the electronic platform, after fulfilling the service requirements - and obtaining the approval of the Civil Defense according to the nature and type of the construction license - and paying the municipal fees and fines for the construction license - if any -.

  • 3- The construction license shall be suspended in the following cases:

    • ‌A- If the construction license was issued in violation of the system, regulation, or related instructions and conditions.

    • ‌B- If the license holder violates what was legally permitted to him.

    • ‌C- If the license holder requests this, he is allowed once, and the suspension period shall be added to the duration of the construction license, provided that the suspension does not exceed one year.

    • ‌D- If requested by government entities, provided that the request is justified and based on a legal document that authorizes them to do so.

    • ‌E- If necessary, for reasons deemed by the municipality/secretariat to affect safety (health, urban, economic), it shall be raised (to the Secretary) for a decision.

  • 4- The construction license shall be canceled for the following reasons:

    • ‌A- Based on a request from the licensee after paying the municipal fees and fines for the construction license - if any -.

    • ‌B- If necessary for reasons affecting safety (health, urban, economic) by a decision from the Minister or his delegate.

    • ‌C- If it is in the public interest by a decision from the Minister.

Article 5: Duration of Construction Licenses

  • 1- The validity of building construction licenses shall be for a period of (3) three Gregorian years, starting from the date of issuance.

  • 2- The validity of other types of construction licenses shall be for a period of (1) one Gregorian year, starting from the date of issuance.

  • 3- The renewal of construction licenses shall be for a period of one year, renewable for similar periods.

Article 6: Tasks and Responsibilities for Construction Licenses

  • First: The tasks and responsibilities of the Secretariat/Municipality are as follows:

    • 1- Review the requirements for construction licenses according to the nature and type of construction license service.

    • 2- Supervisory role over construction licenses after issuance according to the nature and type of construction license.

    • 3- Cancel or suspend the non-compliant construction license based on what is stated in Article Four of this regulation.

    • 4- Consider requests for suspension received from certain entities (such as: Civil Defense, Ministry of Energy, Saudi Standards, Metrology and Quality Organization, insurance companies) before the issuance of the Certificate of Occupancy.

  • Second: The tasks and responsibilities of the design engineering office are as follows:

    • 1- Extract the specific survey decision for the project land and review it.

    • 2- Provide a soil testing study for the land intended for construction.

    • 3- Prepare the necessary plans for the project in accordance with (approved building regulations and requirements, Saudi Building Code, and design guidelines for the urban identities of the area or city - if any - within the boundaries of the site intended for licensing) and upload them to the electronic platform.

    • 4- Upload fire protection and safety plans and technical reports from the engineering offices approved by the Civil Defense.

    • 5- Obtain approvals from other government entities and service entities if the nature of the project requires it, such as (electricity, water, telecommunications).

    • 6- Complete the electronic forms.

    • 7- Print the construction license.

  • Third: The tasks and responsibilities of the supervising engineering office are as follows:

    • 1- Review the design plans prepared by the design office before starting construction.

    • 2- Supervise the implementation of the project according to the design plans prepared by the design office.

    • 3- Upload supervision reports during the construction phases according to the requirements of the Saudi Building Code to the electronic platform simultaneously with the construction phases on site.

    • 4- Upload the final report of the works and the safety report issued by the Civil Defense to the electronic platform.

    • 5- Coordinate with service entities to provide services to the project such as (electricity, water).

    • 6- Notify the Secretariat/Municipality in case of any error or deficiency in the plans or approvals or execution of works that violate the approved plans.

    • 7- Print the Certificate of Occupancy from the electronic platform.

Chapter 3: Commercial Licenses

Article 7: Requirements for Issuing Commercial Licenses

  • The application for a commercial License shall be submitted according to the following conditions and requirements:

  • 1- Legal Capacity, which can be verified by any of the following:

    • ‌A- To be a natural Saudi person.

    • ‌B- To be a legal entity licensed to engage in the activity.

    • ‌C- To be a foreign investor licensed to engage in the activity.

  • 2- A valid usufruct document.

  • 3- The municipal requirements for the activity to be licensed commercially, including the following:

    • ‌A- Location: including the national address in the commercial License document.

    • ‌B- Area: to be recorded in writing and numerically in the commercial License document.

  • 4- A valid establishment document.

  • 5- Approval from the Civil Defense.

  • 6- Existence of a building License/occupancy certificate for the building if the activity to be licensed will be practiced inside a building.

  • 7- Not to be in locations that are suspended by a legal document according to its content.

  • 8- Approval from the relevant government agency that supervises the activity.

  • 9- Completion of the forms on the electronic platform.

  • 10- Payment of municipal fees and fines - if any - related to the municipal Licenses associated with the License applicant.

  • The Secretary may grant exceptions by a justified decision - according to the approved forms from the Ministry for the following cases:

    • ‌A- The minimum area or spatial requirements of the activity's conditions.

    • ‌B- Request for a building License for historical or old buildings, accompanied by an engineering report proving the safety of the building.

    • ‌C- Request for a building License for sites within holdings inside and outside the urban area.

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