Real Estate Contributions Law supports financing sector projects, increasing supply: REGA CEO

Abdullah Alhammad, the Real Estate General Authority (REGA) CEO

One of the most important objectives of the Real Estate Contributions Law is to provide financing for real estate development projects that will reflect positively on increasing the sector’s supply and meeting its needs, the Real Estate General Authority’s (REGA) CEO Abdullah Alhammad told Argaam in an interview.

On the sidelines of the inauguration ceremony of the e-platform for qualification and licensing of real estate contributions, Alhammad added that financing availability is one of the key enablers for real estate development projects, coupled with the expansion of the construction and development processes through real estate developers.

He explained that the new law contributes to providing financing through partnerships between investors, both individuals and companies, in real estate contributions. This is under the supervision of REGA and under regulations and partnership with the Capital Market Authority (CMA), which in turn is reflected in project financing and further accelerates the development of projects to boost supply provision.

In previous years, real estate contributions and funding volumes had a great impact on the development of cities in earlier stages, the CEO pointed out. He forecasts real estate contributions to reach billions during the coming period, which will contribute to financing the local real estate sector — one of the largest sectors affecting investment in Saudi Arabia.

According to data compiled by Argaam, REGA launched on Feb. 14 a new e-platform to receive applications for qualification and licensing of real estate contributions. The platform will enable developers to obtain the necessary licenses to start real estate contributions through online submission of the applications.