Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Saudi Arabia Grants 90,000 Licenses as Real Estate Brokerage Law Comes into Force

Saudi Arabia Grants 90,000 Licenses as Real Estate Brokerage Law Comes into Force

Saturday, 21 January, 2023 - 09:30
Saudi Arabia to transfer real estate activities into online activity (Asharq Al-Awsat)

Saudi Real Estate Authority said that it had received, through its electronic services, over 89,000 requests for real estate licenses in just two days after the real estate brokerage law came into force.


The Authority issued over 72,000 licenses to individual practitioners and 17,100 licenses to establishments.


Spokesman Tayseer al-Mufarrej explained that the Authority is working to ensure business continuity in the real estate market and the transition to the new regulations in a straightforward manner.


Individuals who have been issued licenses to practice real estate mediation and marketing are allowed to mediate in real estate transactions between the two parties in exchange for a commission.


Electronic mediation includes promoting real estate to conclude a real estate transaction.


Licensed establishments can practice real estate brokerage and marketing activities. They are also allowed to practice property and facilities management, including financial and technical management, on behalf of others for the real estate specified in the property management contract.


Individual and establishment licenses will soon be issued and announced for real estate auctions for establishments, real estate analysis, consulting activities, and real estate advertisements.


Mufarrej confirmed that the real estate brokerage system identified seven main activities subject to its provisions: brokerage, real estate marketing activity, property management, and facilities management, as well as real estate auction, advertising, consultancy, and analysis activity.


Individuals' activities included mediation, marketing, advertising, consultancy, and real estate analysis.


Meanwhile, the Saudi Central Bank (SAMA) announced the amendment of Article 8 of the Implementing Regulation of the Finance Companies Control Law.


The amendment of this article followed a public consultation announced earlier on the Public Consultation Platform.


The amendment is part of SAMA's continuous efforts to develop the small and medium enterprises (SMEs) sector and attract a new segment of investors to establish finance companies specializing in financing SMEs.


SAMA clarified that a sub-article numbered (4) was added to Article (8) of the Implementing Regulation of the Finance Companies Control Law.


It stipulated that the minimum paid-up capital for a finance company that provides financing for SMEs shall not be less than $13.3 million.


Editor Picks

Multimedia