Table of Contents
Controls for Qualifying and Classifying Persons Engaging in Collective Real Estate Investment Schemes
1445/09/20
1445/08/25
Active
Controls
Article 1
Real estate developers shall be qualified based on the following criteria:
1. Financial capabilities.
2. Technical capabilities.
3. Corporate capabilities and human resources.
Article 2
A real estate developer becomes qualified to practice after attaining the required score as follows:
|
Size of Collective Real Estate Investment Scheme |
Establishment Capital according to the Commercial Register |
Required Qualification Score |
|
Small (capital less than fifty million riyals) |
100,000 riyals or more |
40 points or more |
|
Medium (capital between fifty million and three hundred million riyals) |
500,000 riyals or more |
50 points or more |
|
Large (capital exceeding three hundred million riyals) |
1,000,000 riyals or more |
60 points or more |
Article 3
Qualification Requirements and Standards:
I. Financial Capabilities:
|
Criterion |
Requirements |
Evaluation Method |
Weight |
Type |
|
|
Financial statements by a chartered accountant |
1. For new establishments within the last year, a financial statement is required. 2. For establishments of more than one year and not less than two years, financial statements for one fiscal year are required. 3. For establishments over two years, financial statements for two consecutive fiscal years are required. Financial Statements: Current assets - cash liabilities - profit and loss |
- Liabilities less than 20% of total assets: 20 points. - Liabilities more than 20% and less than 80% of total assets: 15 points. - Liabilities more than 80% and less than 100% of total assets: 10 points. - Liabilities equal to or exceeding total assets: 5 points. |
20 |
Mandatory |
|
|
Commercial certificate |
A certificate issued by a licensed credit services provider, confirming the applicant's credit integrity, provided that the certificate issuance date does not exceed (three) months from the application date. |
- No lawsuits: 1 point - No bounced checks: 2 points - No overdue financial obligations: 2 points |
5 |
Mandatory |
|
|
Certificate by Zakat, Tax and Customs Authority (ZATCA) |
Valid registration certificate |
The commercial register number corresponds to the valid registration certificate: Full points. |
5 |
Mandatory |
|
|
|
Total |
30 |
|
||
II. Technical Capabilities (Previous Experience):
|
Criterion |
Requirements |
Evaluation Method |
Weight |
Type |
|
|
Statement detailing completed projects |
Real Estate Development Projects: Development projects categorized by type, as follows: 1. Residential: Each project shall comprise a minimum of (10) residential units. 2. Non-residential (industrial, commercial, office, etc.): Each project built-up area shall be (2,000) square meters. 3. Infrastructure Development: Each project area shall be (50,000) square meters. |
Each real estate development project implemented within (3-10) years: 9 points. Three real estate development projects implemented within (3-10) years: 27 points. |
27 |
Mandatory |
|
|
Classification certificates for city service providers implementing the projects |
Classification certificate obtained by project contractors and engineers |
One certificate: Full points |
5 |
Optional |
|
|
Qualification or classification certificates obtained by the establishment |
Certificates issued by official authorities, including but not limited to: 1. Classification certificate as a developer or contractor from the Ministry of Municipal and Rural Affairs and Housing (MOMRAH). 2. Real estate developer qualification certificate for off-plan sale/lease projects. 3. Qualification certificate from major companies in the Kingdom (Aramco). 4. Qualification certificate from Developers Services Center (Etmam). |
One certificate: Full points |
5 |
Mandatory |
|
|
Methodology adopted for an implemented project |
Description of the approach followed in implemented projects, including: 1. A brief about the project and its data, outlining the project area, type, purpose, and plan. 2. Description of software used in the project management to monitor progress, such as, without limitation, Microsoft Project, Primavera, etc. 3. A summary of the project feasibility study, covering estimated costs and anticipated revenues. 4. The structure of the project team. 5. The project timeframe. |
Each requirement: 1 point Full compliance with requirements: Full points |
5 |
Mandatory |
|
|
Contracts of previous projects |
Attaching contracts verifying the implementation of completed projects stated in the statement of projects, including, but not limited to: 1. Project management. 2. Architectural and engineering works. 3. Construction. 4. Infrastructure. 5. Marketing and sales. |
Each contract: 2 points All contracts: Full points |
10 |
Mandatory |
|
|
|
Total |
52 points |
|
||
III. Corporate Capabilities and Human Resources:
|
Criterion |
Requirements |
Evaluation Method |
Evaluation Weight |
Type |
|
Organizational structure |
Approved organizational structure of the establishment |
Approved organizational structure: Full points. |
3 |
Mandatory |
|
Work regulations |
Certificate of approving the work regulations according to Royal Decree No. (M/51) dated 23/08/1426 AH (September 27, 2005) |
Work regulations: Full points |
4 |
Mandatory |
|
Occupational safety and health regulations |
OSH regulations approved by the competent authority in the establishment or ISO 45001 Certificate |
Approved regulations or the certificate: Full points |
2 |
Mandatory |
|
Saudization rate |
Localization certificate issued by the competent authority |
Saudization certificate: Full points |
1 |
Mandatory |
|
Social insurance certificates and list of on-the-job subscribers |
Registration certificates issued by the General Organization for Social Insurance |
1. Number of employees (1-5): 1 point 2. Number of employees (6-49): 2 points 3. Number of employees (50 or more): 3 points. |
3 |
Mandatory |
|
Completion of REGA-approved qualification program |
Completion of REGA-approved qualification program by the establishment’s owner, manager, or employees on the list of on-the-job subscribers |
Completion by one person: Full points. |
1 |
Mandatory |
|
Number of engineers employed by the establishment |
Engineers employed by the establishment and certified by the Saudi Council of Engineers |
1. (1-2) Engineers: 1 point 2. (3-9) Engineers: 2 points 3. (10 or more) Engineers: 3 points |
3 |
Optional |
|
Social responsibility programs |
Programs approved by the establishment |
Approved program: Full point |
1 |
Optional |
|
|
Total |
18 points |
|
|
Article 4
These Controls shall be published in the Official Gazette, and shall enter into force from their publication date.