Licensing procedure

The credit evaluation criteria are based on international best practices that consider economic cycles. The risk level of the company’s sector is determined, and the weight of other credit criteria is adjusted based on Saudi Arabia’s economic weight.

Classification in the new system will be based on the approved activities listed in the National Classification of Economic Activities.

The approved list for each field and the included sectors and activities can be accessed and verified through the ministry agency’s website for regulating city operators. (Financial Boundaries Guide for Classification Sector Activities via the Balady platform).

The new system is already in effect.

The Classification Certificate is valid for two years.

No, it is not mandatory.

Classification is mandatory for companies and institutions in the targeted sectors only for government projects.

The applicant is registered on the Balady platform.

A valid commercial registration.

The applicant has authority over the commercial registration, such as (owner, agent, or authorized representative).

The commercial registration activities fall within the classification-eligible activities.

Financial statements deposited on the secure government platform for financial statement submission (Qawa'em).

In this track, the credit rating is evaluated by the Ministry of Municipal and Rural Affairs and Housing using data from financial statements submitted via the “Qawaem” platform. If statements are missing, a guidance message appears instructing the user to upload the required documents. The establishment is rated based on its financial status, salary payment commitment, and governance mechanisms. Processing takes no more than 15 working days.

A certificate is issued when the establishment scores 19 points in meeting technical standards. However, it does not qualify the establishment to participate in government tenders. No credit evaluation is required to obtain this certificate.

The classification starts from Grade 5 up to Grade 1, with Grade 1 being the highest, specific to each domain.

To apply for classification, the request must include:
1. Technical Evaluation
2. Contractor's Performance Record and Previous Projects (Optional)
3. Credit Evaluation