What is a Real Estate License in Saudi Arabia and its restrictions in the Kingdom

This service of registering a real estate entity provided to foreign companies in case that the total cost of the project,
in terms of both land and construction, is not less than 30 million Saudi riyals in terms of land and
construction and the investment established outside the borders of the cities of Mecca and Medina.

Documentations

1. A copy of the commercial registration of the shareholding partner certified by the Saudi
   Embassy or a copy of the national identity, if one of the partners is a natural person holding the
   nationality of one of the GCC countries, or a copy of the national identity if one of the partners
   is holding the Saudi nationality and a statement issued by “ABSHAR” System to prove the
   profession; or a copy of the commercial registration for Saudi companies.
2. Financial statements of the last financial year of the applicant company and certified by the Saudi
   Embassy.

Rules and Restrictions:

1. Consistency between the total percentage of the Saudi (shareholder/ shareholders) and the
   capital according to the financial limits set forth for the type of activity as show in Section No.
   (11.04) of this manual.
2. Premium residence holders are exempted from the above documents for real estate entity.
3. In case that one of the partners was previously licensed by Ministry of Investment, it must be
   clarified when filling in the partners’ data while submitting the electronic application.
4. In case the licensed business is related to property investment projects, the amount of the
   project to be constructed shall not be less than (30,000,000) Saudi Riyals for land and building
   outside the scope of Mecca and Medina.

Service fees

1. Payment of license fee of two thousand (2000) Saudi Riyals after the first year for a real estate entity.
2. Payment of ten thousand (10,000) Riyals as subscription for the first year to obtain services
   from Ministry of Investment investors’ relations centers. Afterward, the fees is applied as
   subscription fees for services in the following years (SR 60,000).
3. Service fees shall be paid within (60) days from the date of bill issuance. In case of the
   payment’s delay within the identified period, the service will be cancelled and the applicant
   have to apply again

Next reading: Professional license(MISA) and its key restrictions in KSA?

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