Real Estate and Construction Market Entry in Saudi Arabia

1. Real Estate Brokerage and Marketing

Companies conducting brokerage, marketing or transaction-related activities may require a FAL real estate licence.

Requirements can include:

• Appropriate commercial registration activity
• Completion of required training
• Qualified and licensed practitioners
• Professional conduct compliance
• Approved advertising practices
• Registration of relevant brokerage contracts

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2. Developer Qualification

Real estate developers may need to demonstrate:

• Institutional capacity
• Technical experience
• Financial capability
• Completed or active development history
• Qualified management
• Appropriate project controls

Developer qualification coordination may be a prerequisite for specific off-plan or real estate contribution licences.

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3. Off-Plan Sales and Leasing

Developers selling or leasing property before completion require a project-specific off-plan licence. The process can involve:

• Developer qualification coordination
• Valid land ownership or development rights
• Approved building permit
• Approved project designs
• Escrow account
• Feasibility and financial documentation
• Engineering consultant appointment
• Construction and delivery programme
• Marketing-material approval
• Periodic project reporting

REGA introduced an instant licensing service for qualifying off-plan projects in November 2025, but eligibility remains dependent on satisfying the applicable regulatory conditions.

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4. Real Estate Contributions

Real estate contribution structures require separate developer qualification and a project licence. The framework addresses:

• Developer eligibility
• Project licensing
• Capital and subscription arrangements
• Project documentation
• Investor participation
• Appointment of accountants and consultants
• Governance and reporting
• Marketing and offering controls

Where securities or investment interests are involved, CMA requirements may also become relevant.

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5. Construction Contractor Requirements

Construction companies may require:

• Commercial registration for the correct contracting activities
• Saudi Contractors Authority submission coordination
• Contractor classification, where applicable
• Municipal licences
• Project-owner prequalification
• Technical personnel and equipment
• Occupational health and safety procedures
• Insurance and performance guarantees

Classification and prequalification requirements are particularly relevant for government, infrastructure and major developer projects.

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6. Engineering Consultancy

Engineering consultancies may require:

• Saudi Council of Engineers company licence
• Professionally accredited engineers
• Approved technical manager
• Appropriate engineering disciplines on the licence
• Office and staffing requirements
• Professional indemnity coverage where required

The Saudi Council of Engineers provides separate licences for engineering consultancy offices, specialised offices, engineering companies and related professional practices.

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7. Project and Municipal Approvals

Individual developments can require:

• Land-use confirmation
• Planning approval
• Building permit
• Civil Defence approval
• Utility connection approvals
• Environmental approval
• Road-access approval
• Completion certificate
• Occupancy approval

Requirements may differ within economic zones, major development areas and jurisdictions governed by royal commissions or special authorities.