REGA qualifies 80 developers for real estate contributions license

The Real Estate General Authority (REGA) announced the qualification of 80 developers for the real estate contribution license, the state-run Saudi Press Agency reported.

The authority also licensed a real estate contribution in Madinah, following the implementation of the new Real Estate Contributions Law approved recently by the Cabinet.

REGA clarified that the qualification of developers to engage in real estate contributions came after they met the qualification requirements, which is a prerequisite for submitting license applications under the Real Estate Contributions Law.

Securing the qualification certificates allows developers to apply for project licenses as per the law and its executive regulations.

The move aims to accelerate construction activities and boost the supply of residential, commercial, investment, and tourism properties. It also seeks to foster vibrant, flexible, sustainable communities adhering to environmental and social standards.

According to the authority, the issuance of the first real estate contribution license and approval of the public offering of real estate contribution certificates by the Capital Market Authority (CMA) marks a significant milestone in the law's development.

The licensed real estate contribution, Amlak 2, with a capital of SAR 10.4 million, involves the construction of residential apartments in Madinah. The CMA had previously approved the public offering of Amlak 2 certificates.

According to Argaam's data, the CMA approved instructions on offering real estate contributions certificates that aim to regulate registering and offering real estate contribution certificates, including determining the requirements to be met before the certificates offering, in addition to marketing and announcing them, and collecting funds for them.

The instructions also seeks to regulate the requirements for private and public offerings of these certificates, in addition to regulating the obligations of the capital market institution through which the offering shall take place. It also regulates the shareholders' register and the requirements of maintaining books and records.