Saudi: Up to SR 50,000 Fine for Starting Building Construction Without a License
The Ministry of Municipal and Rural Affairs and Housing has begun monitoring of municipal violations in accordance with the updated table of penalties approved by the ministry.
The ministry also updated penalties for road and street violations and general building violations. SR50000 has been set as maximum penalty and this fine will be slapped on violations including starting of building construction without obtaining a license. The minimum fine for this violation is SR10000. In the event of the demolition or renovation of buildings without a license, the fines range from SR2000 to SR10000.
There are 30 days left for the implementation of the updated punitive measures on shops and establishments, taking into account of the gradual determination of fines according to the type of violation, the extent of repetition, and the difference between the levels of cities in economic terms.
During last Dhul Qada, the ministry had classified violations into serious and non-serious. The sizes of establishments will be calculated on the basis of the classification approved by the Small and Medium Enterprises General Authority (Monsha’at). The principle of serving warning notice will be applied before imposing the penalty and setting a correction deadline for non-serious violations.
The amendment to the violations included dividing them into nine groups, and that included violations of commercial activities; violations of public hygiene and commercial waste transporters; violations of roads and streets; building violations; violations of gas stations and electric vehicle charging; violations of municipal fees associated with a percentage of sales; violations of advertising and billboards; violations of sales; and health facility violations.
The amendment granted a period of 90 days to correct road and street violations and general building violations from the date of notifying the violation. It also gave shops and establishments a period of 120 days to correct their status starting from the last Dhul Qada 19.
The updated road violations include blocking streets without a license, and for this the contractor will be punished with a fine ranging between SR6000 and SR30000 per location, with the violation being corrected and the cost of the resulting damages being borne or repair work to be done by the violator.
In the event of using an emergency drilling license for a non-emergency digging, the minimum fine is SR10000 and the minimum fine is SR50000 on the contractor or service provider, along with correction of the violation. The penalty will be doubled in the event of repetition.
In the event of no security and safety observer on site, the fine for such violation begins at SR4000 and reaches up to SR20000. The same penalty will be slapped in the event of failure to provide equipment and machinery with lighting that conforms to the specifications approved for the entire excavation.
According to the amended schedule, if a building is constructed in violation of the authorized plans by increasing the construction rate, number of floors, or other violations of the building regulations for residential villas, the fine starts from SR200 and reaches SR1000. The violator shall also rectify the violation at his own expense.
In the cases where removal of the violation is difficult related to construction aspect due to its impact on the safety of the building, the violation can be corrected by removing the damage resulting from it. The violator will be penalized by paying half of the cost of the building subject to the violation, while obligating him to correct it by removing the damage, with a condition that he shall bring a certificate from an engineering office approved by the ministry proving the safety of the constructed facilities.
The amendment stressed that in the event of failure in the provision of electronic payment methods, the fine for the violation begins at SR200 and reaches SR1000. In the event of not placing stickers for electronic payment options, there will be a unified fine of SR200. When refraining from using electronic payment methods, the fines range from SR400 to SR2000.
The updated table of violations stated that practicing the activity without obtaining a municipal license is considered as a serious violation and its penalty ranges between SR10000 and SR50000 in fines and the value is according to the classification of the mayoralty and the municipality where it is located. The fine will be doubled in the event of repetition and is also followed by the closure of the facility until the license is issued.
The amendment includes raising the quality of life and improving the cultural landscape. There will be four levels of payment of violations depending on the size of the establishment, as large establishments have to pay 100 percent of the value of the violation, gradually reaching only 25 percent of its value for micro establishments. It also includes a gradual progression of fines according to the type of violation and its frequency.
The violations are divided into 5 levels according to the classification of mayoralties and municipalities. There are five major mayoralties that are Riyadh, Makkah, Madinah, Asharqiya (Eastern Province), and Jeddah, and other 12 mayoralties, in addition to municipalities with the categories of A, B, C, D, and E.
