Saudi Real Estate Market aims to control transactions: Official

Ahmed Al-Salman, General Supervisor of the Saudi Real Estate Market

Ahmed Al-Salman, General Supervisor of the Saudi Real Estate Market (SREM), said the exchange is expected to contribute to creating a more transparent real estate market while controlling industry-related transactions.

He told Argaam that SREM will provide more effective and easy tools in the governance and regulation of real estate transactions. In addition, it will contribute to providing an effective platform to attract investment and diversify the investor base.

SREM focuses on the Ministry of Justice's role in registering and preserving real estate ownership, while providing the necessary guarantees for the beneficiaries to obtain accurate and reliable information from the records of the ministry and the relevant government bodies.

Here are details of the interview:

Q. Could you give us insight into SREM and its objectives?

A. SREM is a digital platform that provides real estate trading services (buying and selling), mortgages, deeds issuance, as well as sorting and consolidation using the real estate identity. This is in addition to offering multiple options for indices and real estate inquiries with ease and reliability. It is an integrated platform for real estate wealth management.

Q. How about SREM’s impact on the real estate market and the investment environment?

A. The exchange aims to enhance the business and investment environment through the development of the real estate documentation system, the governance of procedures implementation, and the provision of a reliable source of real estate data for investors and related parties. In addition, it seeks to manage real estate trading, receive offers and requests, execute deals, register transfers of ownership, and offer mortgages. The market also publishes real estate information and reports directly and historically.

Q. Does the platform provide its services to individuals or entities?

A. SREM services are available to all beneficiaries in their original capacity or as agents of individuals or establishments. The individual can use the services on his own behalf, or as an agent for an individual or an entity. The exchange allows adding the beneficiaries' agencies to the personal files of beneficiaries to access them directly at any time to implement and complete their real estate transactions.

Q. What are the value-added services provided by SREM besides buying and selling?

A. SREM offers some value-added services such as adding the real estate identity to the deeds for more data accuracy, in addition to the free real estate sale and purchase requests. It also provides real estate data instantly and historically and allows the real estate sector to provide innovative services to develop and improve services provision. In addition, the market enables the private sector to provide pioneering services in all fields.

Q. What is meant by direct transactions and real estate offers?

A. Direct transactions allow direct follow-up of all transactions that take place across the Kingdom. This is conducted via all available channels of the Ministry of Justice such as notaries, where it is possible to view the transaction data such as its value, date and time as well as the location of the real estate, the price per square meter, and total area.

As for the real estate offers page, it allows viewing any real estate to which the conditions of listing the property on SREM platform apply. Those wishing to buy can submit their request and complete all relevant procedures, including obtaining approval of related parties through the platform in record time and without any human intervention.

Q. How will SREM affect the real estate market and industry players?

A. SREM focuses on the Ministry of Justice's role in registering and preserving the real estate while providing the necessary guarantees for beneficiaries to obtain accurate and reliable information from the records of the ministry and relevant government agencies. SREM also provides more flexible and

transparent tools for beneficiaries, including free offers and requests as well as direct offers for the executed transactions.

SREM scope of work does not include the activities of real estate companies and offices related to property management, brokerage, real estate marketing and other related activities such as advisory and evaluation services.

The exchange is expected to contribute to creating a more transparent real estate market and controlling industry-related transactions. It will also provide more effective and easy tools for the governance and regulation of real estate transactions. Furthermore, the exchange will contribute to providing an effective platform to attract investments and diversify the investor base.

Q. How does the exchange ensure the validity of offers?

A. This can be done through verifying the identity of users via the National Information Center, as well as the bank accounts through the Saudi Central Bank (SAMA). This also includes verifying ownership and deed data as well as its conformity with the exchange's terms and conditions.

Q. Can we track the real estate market performance through SREM?

The SREM data and indicators contribute to the empowerment and sustainability of the real estate sector, raise its level of transparency, and enhance the reliability of real estate transactions. Thus, real estate traders can track the large-scale movements of the real estate market through following the data and indicators. In most cases, SREM will be one of the most important tools to analyze dynamics and trends of the real estate market.

Q. How about future developments? Is the Ministry of Justice working to introduce new services to SREM?

A. The Ministry of Justice is continuously carrying out developments. As for SREM, we are currently working on providing a set of new services that can be used through the exchange. This includes sorting housing units and issuing grants using the real estate identity, as well as linking deeds to real estate identities. The services also include auctions and more features related to activating the spatial maps. The ministry is also keen to benefit from the observations of beneficiaries, which will reflect positively on the services provided.