Real estate contributions are preparing to return to the Saudi market after years of absence, but this time within a new regulatory framework based on governance, oversight, and clear legislation. The aim is to protect investors and enhance transparency in investment operations.
Specialists in the real estate sector believe the new system was introduced to address the problems of previous experiences, which were characterized by weak regulation and randomness, leading to stalled projects and losses for thousands of investors.
The new system imposes a set of requirements before launching any real estate contribution. Among the most important conditions is submitting a comprehensive feasibility study for the project. It also requires the involvement of specialized professional parties such as an engineering consultant to oversee implementation, a certified public accountant to review financial statements, and a contribution manager responsible for daily operations.
In addition, a licensed financial company must collect investor funds. The system also prohibits collecting funds directly from individuals and sets a maximum funding limit for a single contribution at SAR 100 million.
The market witnessed the first practical application of the new system last January through the launch of a real estate contribution aimed at developing a residential project in Riyadh with a total investment value of SAR 84 million.
Approximately SAR 36 million of this amount was offered to investors, and the offering was fully subscribed within just 12 minutes. Specialists considered this a strong indicator of growing confidence in the Saudi real estate market.
Experts believe that the new system represents a transformation in the management of this type of investment. It focuses on prevention and avoiding project failures before they occur by enforcing governance, separating project funds, and ensuring regular financial disclosures.
Expectations indicate that around 50 real estate contributions could be launched during the first half of 2026. These investments may achieve returns ranging between 30% and 40% over a period of one and a half to two years. Meanwhile, the minimum participation starts at SAR 1,000, allowing a wide segment of investors to take part in these opportunities.
