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Riyadh city
The Real Estate General Authority (REGA) announced issuing the executive regulations for the real estate contributions law, in coordination with the Capital Market Authority (CMA).
REGA confirmed the possibility of applying for a real estate contributions license through its e-services.
Under the regulations, the real estate development project will be licensed if five or more persons participate in it.
The real estate contributions are classified by size, as follows:
- A small contribution with capital of less than SAR 50 million.
- A medium contribution with capital of not less than SAR 50 million and not more than SAR 300 million.
- A large contribution with capital exceeding SAR 300 million.
However, it is not allowed to license several real estate contributions to the same property during the same period.
In July 2023, the Saudi Cabinet, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, approved the Real Estate Contributions Law, according to data available with Argaam.
The law aims to open new financing channels for investors in the field of real estate development, as well as increase confidence in the sector by regulating procedures for issuing, managing, and liquidating real estate contributions.
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