The the General Real Estate Authority the second edition of the regulatory sandbox one of the initiatives of the Saudi ProTech Center (SPH), as part of its efforts to enable technological innovation in the real estate sector and enhance the market’s readiness to adopt modern operating models, coinciding with the approval of the regulatory framework for the Regulatory Sandbox.
The Authority explained that the regulatory sandbox represents a flexible environment that allows technology companies and entrepreneurs to test their solutions and business models under direct regulatory supervision for a specified period of time, enabling them to test their model on a specific customer segment, thereby striking a balance between supporting innovation and ensuring compliance with relevant laws and regulations.
Supporting Innovation in the Real Estate Sector
She explained that the initiative targets tech startups and innovative business models in real estate sector that fall within the Authority’s jurisdiction, noting that “Al-Baya” aims to support innovation in the real estate sector and enable participants to develop their operational models and meet the regulatory requirements for launching them in the market, in addition to strengthening the protection of consumer rights, developing regulatory frameworks in line with the sector’s technological future, and contributing to improving legislation and enhancing market efficiency.
The Authority stated that participating models go through four main stages, including the submission stage, the readiness assessment stage, and the testing stage, which lasts between 6 and 24 months based on specific performance indicators, followed by the exit phase, which may culminate in the model’s launch in the open market after regulatory requirements are met.
Multiple Tracks in the Second Edition
It confirmed that the second edition includes multiple tracks, most notably the fractional ownership model track within the real estate tokenization framework, which enables the testing of innovative investment and financing solutions that contribute to accelerating the growth of real estate supply and enhancing the efficiency of real estate assets.
She noted that the first batch of the regulatory sandbox included nine digital platforms that worked to test and develop the fractional ownership model in a regulatory environment supportive of innovation and have now officially begun offering their services to the public. These are: Sahl, Jaza’, Ghanim, Madak, Daroub, Nola, Hasaylak, Hastek, and Asul Gama.
The Authority invited companies and entrepreneurs wishing to benefit from the program to register and review the details of the tracks and admission criteria via the following link: https://rega.gov.sa/rega-services/platforms/saudi-proptech-hub/, noting that applications must be submitted by April 30, 2026.
