Saudi Building Code and Building Permit Regulations Challenges and Solutions

For many years, the construction sector suffered from persistent challenges due to the absence of comprehensive technical and regulatory frameworks that could ensure quality in design, construction, supervision, accountability, and the clear definition of the rights, responsibilities, and obligations of all stakeholders involved in the building process.

It is fair to say that the Saudi Building Code (SBC) represents a significant developmental and civilizational achievement. Its gradual implementation marked a major milestone in the history of Saudi Arabia's construction industry. This initiative coincided with the launch of another remarkable achievement: Balady, the National Unified Platform for issuing and managing building permits across the Kingdom.

These regulations introduced several important new requirements, including mandatory engineering supervision throughout all residential construction projects, compulsory latent defects insurance for all building works, and the requirement for engineering consultancy firms and contracting companies to obtain official classification. These measures have proven highly effective in addressing many of the sector's long-standing issues, such as the phenomenon commonly known as "cardboard villas"—poorly constructed residential buildings—as well as structural failures in some existing and under-construction commercial buildings.

However, the simultaneous enforcement of these regulations and requirements, together with the announcement of penalties and financial fines for non-compliance, created considerable concern within the market. As a result, some property owners and investors postponed launching new projects, while several construction service providers temporarily suspended operations to reassess project risks and revise cost structures in light of the extensive regulatory changes.

In response to feedback and recommendations from citizens, investors, and private sector organizations, the relevant authorities—including the Saudi Building Code National Committee, the Ministry of Municipal and Rural Affairs and Housing, the General Directorate of Civil Defense, and the Ministry of Energy—implemented several improvements to both the Saudi Building Code and the building permit procedures in order to facilitate implementation and eliminate obstacles affecting the permit issuance process.

The most notable improvements included:

• Revising several provisions of the Saudi Building Code, including thermal insulation requirements, column dimensions and spacing, façade glazing ratios, and easing certain requirements related to reinforcement steel quantities.
• Postponing the requirement to appoint the supervising engineering consultant, contractor, and construction insurance until after the building permit has been issued and before construction work begins.
• Removing the requirement for a classified contractor and accepting an approved contractor instead, provided the contractor is registered with the Saudi Contractors Authority and listed on the Balady platform, without the need for formal classification.

These adjustments had a positive impact by restoring the building permit issuance process to its normal pace. Today, engineering consultancy firms—including Madarej Engineering Consultants—are issuing building permits smoothly and efficiently for all types of projects, including commercial buildings, office buildings, residential villas, recreational facilities such as resorts, chalets, and parks, as well as commercial establishments including cafés, restaurants, retail shops, and many other developments.