On Thursday, November 14, 2024, the Capital Market Authority (CMA) and the Real Estate General Authority (REGA) signed a Memorandum of Understanding to regulate real estate contribution activities in the Kingdom.
The cooperation agreement aims to regulate real estate contributions, enhance transparency and disclosure, protect the rights of all parties involved in real estate contributions, and establish governance, regulation, and automation of these contributions. As one of the investment financing channels for real estate developers, this initiative seeks to bolster investor confidence in the Kingdom’s real estate sector.
The memorandum, signed on the sidelines of the Cityscape Global Exhibition hosted in Riyadh from November 11 to 14, 2024, was attended by His Excellency the Minister of Municipal Rural Affairs and Housing, Mr. Majed bin Abdullah Al-Hogail, CMA Vice Chairman Mr. Youssef Hamad Al-Bilihid, and CEO of the Real Estate General Authority, Eng. Abdullah bin Saud Al-Hammad. The memorandum is part of joint efforts to enhance cooperation between the two entities and to establish arrangements aimed at governing joint activities in implementing the provisions of the Real Estate Contributions Law and its executive regulations. Representing the CMA in the signing was Deputy of Financing & Investment Mr. Abdullah Mohammed Binghannam, while the General Authority for Real Estate was represented by Mr. Abdullah bin Saud Al-Duhaim, the General Supervisor of the Real Estate Development Sector.
It is noteworthy that the Real Estate Contributions Law was issued by Royal Decree No. (M/203) dated 28/12/1444H, and based on Cabinet Resolution No. (881) dated 23/12/1444H. This Law is part of a broader legislative framework for real estate to achieve the objectives of the comprehensive real estate sector strategy. It aims to govern, empower, and sustain the sector, enhancing its efficiency and the professionalism of its workforce. The initiative also seeks to improve transparency and disclosure in real estate activities, protect the rights of all contractual parties, and create a secure and reliable real estate market for participants and investors.