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

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.

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.

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.

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.

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.

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.