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Regulatory Framework Aims to Encourage Foreign Ownership of Real Estate in Saudi Arabia

Regulatory Framework Aims to Encourage Foreign Ownership of Real Estate in Saudi Arabia

Wednesday, 14 April, 2021 - 11:00
Residential units in Riyadh. (SPA)

After the Saudi government has recently approved a comprehensive strategy for the real estate sector, official information revealed an initiative within the strategy to amend regulations pertaining to non-Saudis’ ownership of real estate in order to attract foreign capital and increase investments in the sector.

According to information received by Asharq Al-Awsat, the General Real Estate Authority has completed studying a proposed system pertaining to controls and requirements for non-Saudis’ ownership in targeted areas within the Kingdom.

The authority has met with the National Information Center and the National Competitiveness Center to review the current foreign ownership procedures and develop proposals in order to submit them to the Saudi Ministry of Interior.

The approval of the comprehensive strategy for the real estate sector represents an important support for the economy in general and the real estate system in particular, as it is a major engine for achieving development and attracting investments.

The strategy is based on four pillars and focuses on 15 goals and 18 initiatives, which are linked to 22 measurement indicators.

The first pillar is the governance of the real estate sector and deals with developing governance models, effective communication plans and improving supervision mechanisms, among other objectives.

The second pillar focuses on empowering and sustaining the sector. It includes an initiative to create a database and a platform for real estate indicators, in addition to developing training, qualification, accreditation and classification for all real estate professionals.

The third pillar is market effectiveness and includes the registration of land and property and the implementation of laws and regulations. Among its initiatives are the establishment of a central land registry and the development of an electronic platform for real estate registration, in addition to establishing a mechanism for auditing and supervising activities and ensuring the quality of implementation.

The fourth pillar includes a set of priorities and initiatives for establishing a real estate arbitration center, developing procedures and policies for resolving disputes and organizing sales and marketing activities.

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