Saudi Arabia has introduced a comprehensive procedural guide to implement its recently approved off-plan real estate regulation. This initiative aims to enhance transparency, protect buyers, and formalize obligations for developers in the off-plan property market.

The new framework was officially approved by Real Estate General Authority (REGA) CEO Abdullah bin Saud Al-Hammad on May 2 and took effect immediately, as reported in the official gazette, Umm Al-Qura. This guide is part of the regulatory rollout that follows the Cabinet’s 2023 decision to formalize off-plan real estate sales and leasing.

The updated regulations are designed to bolster investor confidence in a sector that contributes approximately 7 percent to Saudi Arabia’s gross domestic product. It also plays a vital role in supporting related industries, including construction and finance. REGA announced on its official X handle that the procedural guide clarifies the requirements for licensing, marketing, selling, leasing, and managing off-plan real estate projects, including the processes for amendments, opening escrow accounts, and other regulatory procedures.

The framework outlines 55 defined scenarios, addressing applications from both legal entities and individual developers for project registration or updates. It includes processes for certifying project completion, modifying contractors, and reallocating escrowed funds. Refunds from escrow accounts are permitted under specific circumstances, such as cancellations of permits, project delays exceeding 180 days, or failure to obtain a sales license.

This regulatory reform aims to provide legal clarity and enhance investor assurance as off-plan developments continue to grow in importance within Saudi Arabia’s residential and commercial real estate landscape. Developers must now adhere to strict registration and reporting requirements, including updates to evaluation scores and the appointment of certified consultants and accountants, further emphasizing the Kingdom’s commitment to establishing a robust legal framework for its real estate sector.