Saudi Arabia to Introduce New Legislation to Govern Real Estate Activities
Saudi Arabia is set to implement its first legislation aimed at regulating real estate activities in an effort to streamline the sector and attract more investments. The Real Estate General Authority, responsible for overseeing the sector, plans to release the new law in the first quarter of 2024, according to CEO Abdullah Al-Hammad.
During a real estate conference in Riyadh, Hammad stated that the purpose of the new legislation is to enhance governance in the sector and make it more appealing to investors. The real estate sector currently accounts for approximately 6.1 percent of the country’s GDP and 12.7 percent of non-oil activities.
By introducing this legislation, Saudi Arabia aims to create a structured framework that will provide clear guidelines for conducting real estate activities. This will serve to increase transparency and protect the rights of both investors and consumers. Additionally, by streamlining the sector, the country hopes to attract more foreign investments and stimulate economic growth.
The implementation of the new law demonstrates Saudi Arabia’s commitment to promoting a favorable business environment in the real estate sector. The government recognizes the importance of this sector in diversifying the economy and reducing reliance on oil.
The Real Estate General Authority’s ongoing efforts to improve governance in the real estate sector align with the Vision 2030 initiative, which aims to transform Saudi Arabia into a thriving and sustainable economy. By ensuring proper regulation and oversight, the country aims to build a robust real estate industry that contributes significantly to its economic development.
Overall, the introduction of this new legislation is a positive step towards strengthening the real estate sector in Saudi Arabia, attracting investments, and bolstering economic growth.
Sources:
– Nadim Kawach, “Saudi Arabia to Launch Real Estate Law in Q1 2024 – Official,” ZAWYA, November 23, 2021
– Aliqtisadia, “Saudi Arabia to issue first legislation to govern real estate facilities Q1 2024,” Al Arabiya, November 23, 2021
