Craft licensing goes into mandatory effect in June 2023

City Service Provider Classification Regulation

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The Ministry of Municipal, Rural Affairs, and Housing has set June 1, 2023, as the mandatory deadline for the service craft licensing for workers in a number of commercial activities overseen by the municipal sector.

The trade license has become a requirement for practicing trade professions, as well as for the issuance and renewal of commercial licenses for establishments, in collaboration with the Professional Examination Program at the Ministry of Human Resources and Social Development, to activate and empower the private sector by automating the licensing process, facilitating the work of investors, and supporting them, thereby contributing to improving the quality of life for the Kingdom’s residents and visitors.

The Ministry clarified that a trade license for certain municipal activities will be a prerequisite for the renewal and issuance of commercial licenses for establishments via the “Baladi,” emphasizing that at least one employee must hold a trade license. This requires verifying that the employee possesses the necessary academic qualifications, experience, and skills to perform their duties with high efficiency and provide quality, professional trade services, and to ensure the protection of consumers and their compensation in the event of damage to the products or services provided. The Ministry urges business owners to act promptly and not delay in obtaining trade licenses for their employees through the platform, so that the renewal or issuance of commercial licenses for their establishments is not suspended.

The professional license provides businesses with a competitive advantage in the eyes of customers and qualifies workers to obtain a professional certification from the Ministry of Human Resources and Social Development in 81 different professions.