<The executive regulation <a style="color: #800000;" href="https://amlak.net. for the real estate contributions system according to size according to three contribution sections; where its size does not exceed 50 million riyals, a contribution of not less than 50 million riyals and not more than 300 million riyals, and a contribution whose size exceeds 300 million riyals, this came during the draft that the General Authority for Real Estate put forward for the regulation through the "Exploration“ platform, in order to enable the public, government agencies and the private sector to express their views and observations on it before its approval, in the medium format in the real estate market and provides a new and reliable real estate investment vessel.

Regulation. <The regulation stipulates that the licensee's percentage in the real estate contribution must not be less than 5 percent and that he must retain ownership of this percentage for himself until the end of the real estate contribution. According to the regulation, the shareholder must transfer the ownership of the property to the real estate contribution after obtaining the license and completing the offering and fundraising.

Disposition after one year

<In the first year, the shareholder must retain the entirety of his shares and may dispose in the second year no more than 50 percent of his share in the real estate shareholding until its expiration.
Real estate developers are also classified according to technical capabilities, financial capabilities, and institutional capabilities, provided that the Real Estate Authority determines the time periods and details of the classification of real estate contribution activity practitioners in rules issued by it and approved by its Board of Directors.

No duplicate contributions for the same property

. The regulation also stressed that it is not permissible to license real estate contributions on the same property during one period, and the license applicant must determine the capital of the real estate contribution through a feasibility study and submit it to the Authority when applying for a license.

Disposal of capital

. The Real Estate Contributions Law Regulation requires the licensee before disposing of the capital reserve amount to meet any unforeseen additional expenses to present it to the shareholders" assembly to vote on it, while if the capital reserve amount is not disposed of or part of it is disposed of, it will be returned to the shareholders after the real estate contribution ends.

The property subject to the real estate contribution shall be the subject of the real estate contribution, and the capital reserve amount shall be disposed of to the shareholders. The real estate subject of the real estate contribution is in one of two cases, the first being a share in kind registered in the real estate contribution, or the other being purchased for the benefit of the real estate contribution.

Advertising for real estate contributions

The provisions of Offering, advertising, marketing and fundraising for real estate contributions, issuing real estate contribution certificates and organizing its shareholders' register are also regulated according to the instructions for offering real estate contribution certificates issued by the Capital Market Authority.

According to the regulation, the real estate contribution license application shall be submitted to the Real Estate Authority along with a certificate that includes the integrity of the applicant's credit record, the real estate registration number/property ownership document, and the statutory approvals from the Ministry of Municipal and Rural Affairs and Housing, the Authority, the Ministry of Energy or other competent authorities according to their regulations.

In addition to a feasibility study. In addition to an economic feasibility study for the real estate contribution in Arabic language and certified by a licensed office in the Kingdom that includes financial and construction data, architectural designs, estimated engineering and marketing plans, expected administrative financial expenses for all development costs of the contribution project, time period, technical implementation stages, expected funding sources, and cases of adding the reserve amount.

<It also requires specifying the capital of the real estate contribution, the form of the contribution agreement, identifying the engineering consultant, identifying the chartered accountant, and appointing the real estate contribution manager.
In addition to the agreement between the licensee and the property owner, and finally the appointment of a financial market institution in accordance with the regulations and instructions for offering real estate contribution certificates issued by the Capital Market Authority.

36 articles in the regulation

The Real Estate Authority explained that the draft executive regulations of the real estate contributions system include 36 articles aimed at preserving the rights of all parties and eliminating the practice of random and irregular real estate contributions, and the governance of control and compliance work, as an extension of the real estate legislation system supervised by the Authority and within the framework of the objectives of the comprehensive strategy for the real estate sector.
The Authority pointed out that the articles of the regulation clarify the classification of real estate contributions and the classification of real estate developers, the procedures for licensing real estate contributions, the provisions of the capital of the real estate contribution, and what concerns the practitioners of real estate brokerage activity and their competencies, in addition to monitoring, inspection and control. The Authority invited all interested parties from the public, government agencies and the private sector to review the regulation in a survey platform and submit comments and suggestions on it, stressing its keenness to ensure that the system and the "Executive Regulations of the Real Estate Contributions System contribute to increasing the supply of commercial and residential real estate products as a new financing and investment channel for real estate developers.

It will also play a role in enhancing investors' confidence in the real estate sector in the Kingdom through its rules and provisions that preserve the rights of all parties and will eliminate the practice of random and irregular real estate contributions, and the governance of control and compliance work.

Reaffirming its keenness to contribute to increasing the supply of commercial and residential real estate products as a new financing and investment channel for real estate developers.