Setting up a
Real Estate business.
Saudi real estate is among the most ambitious sectors of Vision 2030 — homeownership target 70% by 2030, mega-developments like ROSHN (1M housing units), Diriyah Gate, Qiddiya entertainment city, and luxury Red Sea projects. Foreign developers and brokers can own 100%; Real Estate General Authority (REGA) regulates the sector.
What's specific to Real Estate.
License codes, capital, regulators, and quirks that competitors gloss over.
- Activity codes: 6810 (real estate buying/selling), 6820 (renting), 6831 (real estate agencies)
- REGA licensing required — separate from MISA
- Capital: SAR 500K+ for development; SAR 100K for brokerage
- Foreign ownership of land: gradually liberalizing — most commercial allowed, residential historically restricted but loosening
- Saudi Real Estate Refinance Company (SRC): supports mortgage market
- White Land Tax: undeveloped land taxed annually to spur development
- Saudization: standard
- Brokerage exam: agents must pass REGA-administered exam (Arabic)
What we see go wrong.
- ✗ Trying to operate brokerage without REGA license — significant fines
- ✗ Not understanding white land tax — buying land assuming you can hold long-term cheaply
- ✗ Skipping registration with Wafi off-plan platform — required for off-plan sales
- ✗ Saudization shortfall in brokerage — sales agents must be 100% Saudi for residential
- ✗ Misclassifying activity (development vs brokerage vs management) — different regulators
Common questions.
Commercial land: yes, generally allowed for licensed foreign companies. Residential: historically restricted, gradually liberalizing for investors. Specific rules apply by region and project type. We advise case-by-case.
MoCI issues general CR. REGA specifically licenses real estate activities. You need both: CR for the company, REGA for the real estate operation. REGA additionally administers brokerage licensing for individual agents.
Yes. Wafi platform (Ministry of Housing) regulates off-plan residential sales. Developers must register projects, escrow buyer payments, hit construction milestones. Designed to protect buyers after past developer defaults.