The Chief Executive Officer of the Real Estate General Authority (REGA), Engineer Abdullah bin Saud Al-Hammad, praised the Cabinet’s recent approval of the Off-Plan Projects Sale and Lease Law, emphasizing that this decision reflects the continued and unwavering support extended by the Kingdom’s wise leadership—may God protect it—to the real estate development sector. Al-Hammad stated that the new law stands as one of the most significant regulatory enablers for the development and governance of the real estate sector. It plays a key role in advancing the sector’s digital transformation and improving services for beneficiaries. The law aligns with the comprehensive strategy for the real estate sector, its initiatives, and its priorities aimed at transforming the Saudi real estate landscape into a dynamic, attractive, and innovative sector characterized by trust, competitiveness, and its contribution to GDP growth and income diversification in line with Saudi Vision 2030.
He explained that the law safeguards rights, enhances the reliability of contractual relationships between parties involved in real estate projects, and reduces sector violations. The primary beneficiaries include real estate developers, brokers, marketers, and both public and private entities engaged in marketing or promoting off-plan real estate projects.
Al-Hammad further noted that the law requires entities involved in off-plan sale and lease activities to first qualify their establishments and obtain licenses for their projects before initiating any advertising, presentation, or marketing. He confirmed REGA’s commitment to keeping pace with digital transformation in the real estate development sector by regulating relationships among stakeholders through an integrated electronic platform, where all operations related to the law will be executed.
It is worth noting that the law is scheduled to come into force at the end of the current calendar year, 2023. REGA will issue the implementing regulations for the law and will present them for public consultation before approving them for implementation.