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Procedure to acquire FAL License in KSA

A FAL license is granted by the General Authority for Real Estate, the regulatory body overseeing the private real estate sector in the Kingdom. The FAL is the license for individuals and real estate establishments to engage in real estate activities. By following the steps illustrated below, an individual can easily acquire a FAL License in KSA:

1. Documents required:

• • Interested investors must provide the following:
    •  A copy of the shareholding partner’s commercial registration, certified by the Saudi Embassy.
    • A copy of the national identity, if one of the partners is a natural person holding the nationality of a GCC country (in case his data is not registered in the ABSHAR system).
  • Foreign company applicants must also submit their financial statements for the last financial year, certified by the Saudi Embassy.

2. Conditions applied:

1. 1. The total percentage of the Saudi shareholder(s) and the capital per the financial limits stated for the type of activity must be consistent.
   2. Premium residence holders will be exempted from submitting the above documents.
   3. If one partner was previously licensed by the Ministry of Investment, this should be mentioned in the partner’s data when filling out the electronic application.
   4. When accomplishing the electronic application, the applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies.
   5. If the licensed business is related to property investment projects, the amount of the project to be constructed should be at least SAR 30 million for land and buildings. It must also be outside Mecca and Medina.

3. To obtain an FAL, follow these steps:

• • General Authority of Real estate: Select Electronic Real Estate Brokerage Services in the official website of the General Authority of Real Estate. And log in or register as a new user.
  • Fill in required personal data.
  • Agree to the terms and conditions.
  • You can choose the role of either an individual broker or an establishment broker.
  • Click on “Issue a New License.”
  • Choose the Real Estate Brokerage and Marketing License option, then confirm the issuance of the license.
  • Pay any required fees.
  • Complete any necessary training programs for the specific license classification.
  • After applying, REGA will review the documents and verify the information provided.

Choosing the help of an expert agency like the Helpline Group, will help you to acquire the FAL license without any hassle.

The Obligations of  the Real Estate Platform

Real estate platforms are bound by specific responsibilities that necessitate strict adherence. The following outlines key obligations incumbent upon a real estate platform:

• • Safeguarding the confidentiality of information and implementing robust protective measures.
  • Shielding platform users from potential fraudulent activities that may compromise their trust and security.
  • Accepting accountability for any repercussions stemming from violations of established laws and regulations.
  • Mandating advertisers to furnish essential advertising data as part of their commitment to transparency and accuracy.

Explore the Real estate landscape of Saudi Arabia

• Affordable Housing – The government’s focus on affordable housing is evident through initiatives like Sakani, a component of Saudi Vision 2030. The ambitious plan aims to accommodate over one million families by the end of the decade, reflecting a commitment to addressing housing shortages.
• Commercial Real Estate – Aligned with Vision 2030, the development of commercial real estate is gaining momentum in Saudi Arabia. Notably, there is a substantial rise in office spaces, with more businesses establishing their presence in the country. The demand and development of retail establishments are also on the upswing.
• Real Estate Finance – The Saudi Arabian Monetary Authority is actively fostering the progress of real estate financing. Initiatives include reducing the minimum mortgage down payment and introducing multiple mortgage products, signaling a commitment to facilitating financial accessibility in the real estate sector.
• Tourism – Saudi Arabia, a recognized tourist destination, aims to enhance its appeal further through Saudi Vision 2030. Plans to elevate the hospitality and leisure sectors through new developments and government projects, such as Qiddiya and the Red Sea Project, are set to create more tourist attractions. Overall, the future of Saudi Arabia’s real estate industry appears promising, making it an attractive market for potential investors.

Rules and restrictions to acquire Real estate license in KSA

• Alignment of Saudi shareholder percentage and capital with specified financial limits is essential for the chosen business activity.
• If a partner was previously licensed by the Ministry of Investment, this history should be indicated in the electronic application.
• In the electronic application, include the data of the Saudi national identity, Premium residence, or residence for partners, or the commercial registration data for participating Saudi companies.
• For businesses linked to property investment projects, the construction project’s minimum value should be as per government protocols for land and buildings, and it must be located outside Mecca and Medina.