JEDDAH: Saudi Arabia has introduced a comprehensive procedural guide to enforce its recently approved regulations for off-plan real estate transactions, aiming to boost transparency, safeguard buyers, and clearly define developer responsibilities.

Approved on May 2 by Real Estate General Authority CEO Abdullah bin Saud Al-Hammad and effective immediately, the guide follows a 2023 Cabinet decision to regulate off-plan property sales and leasing. It is part of the Kingdom’s efforts to enhance investor confidence in a sector contributing around 7 percent to the national GDP and supporting industries like construction and finance.

The new framework outlines 55 specific procedures for both legal entities and individual developers. These include processes for licensing, marketing, selling, leasing, and managing off-plan projects, as well as submitting modification requests, managing escrow accounts, and other regulatory actions.

It also defines conditions under which buyers may receive refunds from escrow accounts, such as project cancellations, delays exceeding 180 days, or failure to obtain a sales license. Additional procedures cover areas such as project restructuring, title transfers, license revocations, and developer replacements in cases of significant delays.

Developers must now meet rigorous compliance requirements, including maintaining up-to-date registration, appointing certified consultants and accountants, and improving evaluation scores. These measures are intended to ensure legal clarity, protect all stakeholders, and strengthen Saudi Arabia’s position as an attractive market for both domestic and international real estate investors.