Saudi Arabia’s real estate market is undergoing significant transformation. Under Vision 2030, development activity across the Kingdom has accelerated rapidly, and the regulatory framework governing how property is marketed, sold, and leased is evolving alongside it. The Real Estate Brokerage Law (Royal Decree No. M/130 dated 30/11/1443H), together with its Implementing Regulations, has introduced a structured and increasingly digital regime that applies to every participant in the market, from large-scale developers to individual brokers.
This has become more significant following the entry into force, on 22 January 2026, of the Law on Real Estate Ownership by Non-Saudis (Royal Decree No. M/14). That legislation represents one of the most important policy shifts in the Kingdom’s real estate history, establishing a statutory framework that allows foreign individuals and entities to acquire property in designated zones.
The opening of the market to international purchasers creates increased demand for cross-border brokerage arrangements and raises compliance questions that market participants cannot afford to overlook.
For developers, investors, and brokerage firms operating in or entering the Kingdom, three themes in particular are emerging as areas of critical focus.
Theme One:
Mandatory Forms and the FAL Platform: Compliance Is Not Optional
The Real Estate General Authority (REGA) has established a system of mandatory, uniform brokerage contract forms that must be executed and deposited via its electronic FAL platform.
Under the Brokerage Law, a brokerage contract that is not duly deposited is deemed unenforceable, and failure to use the mandatory REGA-approved forms is classified as a violation carrying material penalties.
The FAL platform currently provides templates in three main categories: brokerage for sale (with or without marketing), brokerage for leasing (with or without marketing), and brokerage for marketing only.
Whilst the forms are standardised, developers need to understand both the limitations and the flexibility of this regime.
Particularly the scope of the Additional Terms section, to protect their commercial interests while remaining fully compliant.
Those who do not engage with this framework at the outset risk finding their brokerage arrangements unenforceable when they need them most.
Theme Two:
International Brokerage and the Foreign Ownership Revolution
The Brokerage Law is broad in its application, capturing all real estate brokerage transactions conducted within Saudi Arabia, whether by local or offshore brokers. The definition of “Real Estate Brokerage” encompasses acting as an intermediary between parties in concluding a real estate transaction for a commission, including through electronic means such as websites and social media platforms.
“Real Estate Services” is similarly expansive, extending to marketing, property management, facility management, real estate auctions, advertisements, and consultancy.
However, where a brokerage relationship is concluded and performed entirely outside the Kingdom, or a broker based abroad is engaged to identify prospective buyers abroad for Saudi real estate, the Law’s requirements, including REGA registration and the mandatory forms, will need to be carefully considered.
This territorial distinction is relevant for developers seeking to market projects internationally. Equally, the licensing requirements under the Law may in practice restrict foreign brokers from operating domestically.
As Saudi real estate attracts growing global interest, developers engaging cross-border brokerage firms must carefully navigate the interplay between domestic regulatory requirements and international marketing arrangements.
Questions arise around the structuring of referral arrangements, the treatment of marketing activities conducted through digital channels, and the circumstances in which an international broker’s activities may inadvertently trigger the Law’s domestic compliance requirements.
Non-compliance can result in penalties under the Brokerage Law, ranging from warnings to fines of up to SAR 200,000, licence suspension, or revocation.
With a new cohort of international purchasers poised to enter the Saudi market under the foreign ownership regime, and with developers scaling their international sales campaigns accordingly, the demand for properly structured cross-border brokerage arrangements has never been greater.
Theme Three:
Off-Plan Sales – An Evolving Regulatory Landscape
The Kingdom’s off-plan real estate market is a significant and growing segment. The existing mandatory brokerage forms were designed primarily with completed properties in mind.
REGA has recognised the need to accommodate off-plan transactions within its framework by introducing prescribed forms for off-plan sale and lease agreements covering both units and land, while allowing developers to amend those forms provided such amendments do not conflict with applicable laws and regulations.
REGA has also strengthened market integrity and purchaser protection by requiring a dedicated escrow account for each project into which purchasers’ payments must be deposited.
Developers engaging brokers for off-plan projects should be aware of the practical accommodations that REGA has provided for complex developments.
These measures demonstrate REGA’s pragmatic approach, and understanding how to make effective use of them is important for developers managing large-scale off-plan brokerage programmes.
As the regulatory framework continues to develop, developers need to be attentive to how they structure their brokerage arrangements to ensure both compliance and commercial effectiveness.
As the foreign ownership regime generates additional international demand for off-plan residential and mixed-use assets, the importance of getting these structures right will only increase.
A Market in Motion – Why Formal Advice Matters
Saudi Arabia’s real estate brokerage framework reflects the Kingdom’s broader ambition to professionalise and regulate its property market.
As Vision 2030 accelerates development activity and the foreign ownership regime opens the market to a wider pool of international participants, the interplay between mandatory compliance, international reach, and off-plan structuring is front of mind for market participants.
The regulatory landscape is complex, evolving, and carries real consequences for non-compliance.
Developers, brokers, and investors who engage early with specialist counsel on these themes will be better positioned as the framework continues to mature.
If any of the themes raised in this article are relevant to your business, we encourage you to reach out for a confidential discussion about how we can assist.
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