The Real Estate General Authority (REGA) signed a memorandum of understanding (MoU) today, Tuesday, 6 February 2024, with the Public Investment Fund (PIF), aimed at enabling and advancing the real estate market in Saudi Arabia. The agreement focuses on strengthening the role of property technology (PropTech), data, talent development, policies, and regulatory frameworks to support the development of the Kingdom’s real estate sector.
The MoU was signed on behalf of REGA by its Chief Executive Officer, Engineer Abdullah bin Saud Al-Hammad, and on behalf of the Public Investment Fund by Mr. Ayman Al-Mudaifer, Head of the Real Estate Investment General Administration.
The MoU outlines the enhancement of technology and innovation through the development of four key PropTech centers designed to position Saudi Arabia as a regional PropTech hub. The first is the “Capital Center,” which aims to empower the sector by encouraging investment in PropTech. The second, the “Solutions Center,” is focused on expanding the availability of PropTech solutions by supporting companies, startups, and incubators.
The third center, the “Adoption Center,” seeks to drive demand for PropTech solutions by leveraging PIF’s real estate development companies, Vision 2030 projects, and the private sector. The fourth, the “Enablement Center,” is dedicated to accelerating PropTech sector growth in the Kingdom through enablers such as talent development, research, and media engagement.
The MoU also emphasizes talent development through joint efforts by both parties to foster human capital in the real estate sector. This includes facilitating access to training opportunities and providing courses from the Real Estate Institute to targeted groups, supporting entry-level real estate professionals.
Al-Hammad highlighted that this collaboration with the Public Investment Fund marks a significant step toward accelerating the adoption of PropTech in the Kingdom. He noted that PropTech is a key driver of economic growth and investment, aligning with PIF’s ambitious strategy to lead the country’s development and contribute to the localization of technology and knowledge.
He added that the memorandum includes several provisions aimed at strengthening the sector, including collaboration to stimulate private sector growth by developing regulatory frameworks that reduce risks and increase investor confidence in the local real estate market. The MoU also supports the attraction of foreign direct investment by drawing global real estate leaders to the Kingdom and enhancing the sector’s appeal to local and regional small and medium-sized enterprises to boost localization and increase local content.
It is worth noting that REGA continues to expand its strategic partnerships across sectors within the Kingdom, in line with its objectives to develop the real estate market and elevate professional standards in the Saudi real estate sector.