On the sidelines of the Cityscape Global exhibition held in Riyadh in November, the Capital Market Authority (CMA) and the Real Estate General Authority (REGA) signed a Memorandum of Understanding (MoU) to regulate real estate participation activities in the Kingdom.

The cooperation agreement aims to regulate real estate participations, enhance transparency and disclosure, protect the rights of all parties involved, and govern, regulate, and automate real estate participations. This is seen as a crucial step in strengthening investor confidence in the Kingdom's real estate sector, considering real estate participations as a significant financing channel for real estate developers.

The MoU comes as part of joint efforts to enhance cooperation between the two entities and establish frameworks for governing joint work in implementing the provisions of the Real Estate Participations System and its executive regulations. Abdullah bin Mohammed bin Ghannam, Deputy Governor for Financing and Investment at the CMA, represented the CMA in signing the agreement, while Abdullah bin Saud Al-Dahham, General Supervisor of the Real Estate Development Sector at REGA, represented the REGA.

It's worth noting that the Real Estate Participations System is an extension of the real estate legislative system aimed at achieving the goals of the comprehensive real estate sector strategy. This strategy focuses on governing the sector, empowering and sustaining it, and enhancing its efficiency and the effectiveness of its workforce. Ultimately, the goal is to increase transparency and disclosure in real estate activities, protect the rights of all contractual parties, and create a safe and reliable real estate market for both dealers and investors.

This agreement marks a significant step towards a more regulated and transparent real estate market in Saudi Arabia, fostering greater investor confidence and sustainable growth.