The General Real Estate Authority The General Real Estate Authority has warned all real estate market participants and investors against raising funds through irregular means under the guise of real estate development projects or investment contributions, without obtaining official licenses issued by the Authority, emphasizing that these practices constitute a clear violation of the provisions of the Real Estate Contributions Law and its implementing regulations, and represent a breach of the controls and instructions governing real estate market activities in the Kingdom.
Real Estate Authority Warns Against Fundraising Without a License
The official spokesperson for the General Real Estate Authority, Taysir bin Mohammed Al-Mufarraj, clarified that any activity related to raising funds or promoting real estate investment projects must be pre-licensed by the Authority through officially approved platforms, noting that the irregular offering of real estate contributions exposes investors" and participants" funds to serious financial and legal risks and constitutes an illegal fundraising activity criminalized by the Kingdom’s regulations and legislation.
Al-Mufarraj noted that the real estate contribution system was established to create a safe and regulated investment environment by requiring real estate developers to open separate bank escrow accounts for each contribution, and fully disclosing project details, with direct supervision by the General Real Estate Authority and the Capital Market Authority at all stages of implementation, thereby reinforcing the principle of transparency and raising the level of governance and reliability in the real estate market.
Fake Projects Threaten Investors
He also revealed that the Authority recently identified a number of cases involving the collection of funds or the promotion of real estate investments without obtaining the required regulatory license, and legal action has been taken against the violators, who have been referred to the competent authorities to complete investigations, in accordance with applicable regulations and penalties.
In concluding its statement, the General Real Estate Authority called on all citizens and investors to verify the legality of any real estate project or investment before participating in it, by reviewing the lists of licensed entities through the Authority’s official electronic channels, and to immediately report any suspicious solicitations or activities aimed at raising funds outside the regulatory framework, in order to protect investors’ rights and ensure the stability and credibility of the real estate market.
