Saudi marketUpdated November 8

Ministry outlines contractor licensing requirements ahead of January 2027 start

Okaz reports that the Ministry of Municipalities and Housing retained the SAR 100,000 minimum capital requirement for contractor licensing after consultation. The ministry says a uniform minimum is intended to ensure contractors’ financial solvency and raise reliability and compliance in project execution. Consultation feedback included warnings about possible effects on small contractors and emerging businesses; the ministry said 72 submissions from 20 participants contained no substantial observations warranting stopping the project. The regulation is set to apply from January 1, 2027, while required approval procedures were still being completed at the time of the report. Under its requirements, contractors need a valid license before entering tenders and must document contracts. The public will be able to check licenses, and applicants will be told the reasons for delays when a licensing decision takes more than 30 working days.

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Coverage started November 8