What are the Real Estate Licenses in Saudi Arabia?

 The Kingdom of Saudi Arabia witnesses a remarkable development in all investment, economic and social sectors. It also seeks to develop the real estate sector in the Kingdom and to enhance the real estate contributions of Saudi and foreign investors. The Saudi Royal Commission has issued conditions and requirements for obtaining licenses for real estate development and investment projects in the Kingdom, which we will discuss in this document. 

What are the real estate licensing services in Saudi Arabia?

Real estate licensing services in Saudi Arabia are specialized professional services offered by licensed agencies or individuals to assist individuals and entities in navigating the complexities of the Saudi real estate market and ensuring compliance with local regulations.

A real estate license is a document the Real Estate General Authority issued to authorize its holder to practice one or more real estate activities.

• Service Description:

This service includes investments in real estate activities, provided that the project's total cost, in terms of both land and construction, is not less than thirty million (30,000,000) Saudi Riyals 30 million Saudi riyals. Moreover, the investment shall be constructed outside the borders of the cities of Mecca and Medina.

• Real Estate Activities:

An activity or a group of activities carried out to provide specific real estate products, including real estate development, real estate contributions, and brokerage services in selling, buying, or renting real estate.

Documents for issuing Real Estate licenses in KSA:

• A copy of the commercial registration of the facility certified by the Saudi Embassy
• A copy of the national ID, if one of the partners is a natural person (individual) holding the nationality of one of the GCC countries (in case this person's data is not registered in the ABSHAR system).
• The financial statements for the most recent fiscal year of the applicant company, certified by the Saudi Embassy.

What are the Real Estate licenses Restrictions?

• Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the capital according to the financial limits set forth for the type of activity; provided that the total cost of the project, in terms of both land and construction, is not less than thirty million (30,000,000) Saudi Riyals, and the investment shall be constructed outside the borders of the cities of Mecca and Medina. As for real estate financing activity, the minimum capital requirement is two hundred million (200,000,000) Saudi Riyals and the minimum percentage of Saudi partnerships is 40%.
• Premium residency holders are exempted from the above restriction. 
• If one of the partners was previously licensed by the Ministry of Investment, this must be clarified when filling in the partners' data upon submitting the electronic application.
• The Saudi national identity, Premium residency, or residency data must be fulfilled if one of the partners holds any of them, or the commercial register data for the participating Saudi companies upon submitting the electronic application.
• In case the licensed business is related to property investment projects, the amount of the project to be constructed shall not be less than thirty million (30,000,000) Saudi Riyals for land and buildings outside the scope of Mecca and Medina. There are no minimum capital limits for real estate investment projects. 

What are Real Estate Licenses Fees?

• License fees are 2,000 Saudi Riyals yearly with a maximum of five years.
• License fees for the first year subscription to obtain services from the Investor Relations Centers of the Ministry of Investment are 10,000 Saudi Riyals; then, the yearly subscription fees in the following years are 60,000 Saudi Riyals.
• Service fees shall be paid within (60) days from the bill issuance date. In case of delay, the service shall be cancelled and a new application has to be submitted.

Real Estate licenses are applied for through the website (the E-Services Portal), and the service is delivered within a maximum of two working days.

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