The Real Estate General Authority (REGA) has called on all government entities, private sector participants, and those interested in real estate affairs to submit their feedback and comments on the draft implementing regulations for the Real Estate Contributions Law, currently published on the "Istatlaa" platform, ahead of its official approval. With four days remaining until the consultation period ends on 20 November 2023, REGA confirmed that it will begin receiving license applications for real estate contributions starting next January, with application procedures to be announced through the dedicated electronic platform.
REGA explained that the draft "Implementing Regulations for the Real Estate Contributions Law" includes thirty-six articles covering: definitions, classification of real estate contributions by size, classification of real estate developers by capabilities, conditions for licensing real estate contributions, procedures for licensing real estate contributions, mechanism for offering real estate contributions according to Capital Market Authority instructions, necessary documents when requesting license for real estate contribution from REGA, components of the real estate contribution agreement model between real estate developer and contributors, mechanism for Authority approval of license application, components of license issued by REGA after completing all requirements, license amendment mechanism, real estate contribution capital provisions, mechanism for subscribing to real estate contributions, conditions for subscribing to real estate contributions with in-kind share from property, real estate developer borrowing for real estate contribution benefit, real estate developer percentage in real estate contribution, real estate contributions activity practitioners and their specializations and obligations, shareholders' assembly specializations and meeting attendance mechanism, supervision, inspection and control procedures by REGA, and components of violation control minutes.
REGA emphasized that the Real Estate Contributions Law is a pivotal legislative tool that regulates real estate contributions, enhances transparency and disclosure, protects the rights of all stakeholders, and provides a structured and automated framework for this activity. The law is expected to boost the supply of commercial and residential real estate products, increase financing opportunities for developers, open new investment channels, enhance investor confidence in the Saudi real estate sector, eliminate informal and irregular real estate contributions, and improve oversight and compliance. It will also create promising investment opportunities for small and medium enterprises, sustain development activity, and generate employment within the real estate sector.
It is also noted that publishing draft regulations on the "Istatlaa" platform prior to official approval aims to enable individuals, government agencies, private entities, and other stakeholders to share feedback on proposals related to economic and developmental affairs. This contributes to a safer and more stable investment environment, and improves the transparency and effectiveness of the legislative framework through participatory policymaking. The draft implementing regulations can be reviewed at:
https://istitlaa.ncc.gov.sa/ar/Municipality/rega/Implementing/Pages/default.aspx