‎Saudi Arabia to issue regulations of real estate contribution law within 2 months: Official

‎Saudi Arabia to issue regulations of real estate contribution law within 2 months: Official

Real Estate General Authority's (REGA) spokesperson, Tayseer Al-Mufarrej, said the executive regulations of the real estate contributions law will be issued within the next two months.

The regulations are drafted in coordination with the Capital Market Authority (CMA). Public input will be sought to enhance these regulations, he told CNBC Arabia.

The law is a new financing channel, on which the real estate market and developers will rely to build and sell projects. It aims to boost the real estate supply, particularly in the residential sector.

The regulations will detail the periods specified for contributions, classifications based on the size, location or financing of the contribution, as well as the percentage owned by the shareholder, etc., Al-Mufarrej added.

The financing of projects will be decided by the CMA, while REGA will regulate and license brokerage practitioners.

The Cabinet recently endorsed the real estate contributions law, which aims to regulate real estate contribution activities, enhance transparency and protect the rights of parties, Argaam earlier reported.