Real Estate Company Setup in Saudi Arabia

Most of the confusion about real estate companies comes from treating brokerage and development as one activity. They sit under different MISA rules and different REGA licenses, and a single company that does both carries both sets of obligations.

FAL is REGA's license for real estate activities under the Real Estate Brokerage Law (Royal Decree M/130, 1443H). It covers brokerage and marketing, property management, facility management, auctions, consulting and analysis, and advertising, and a licensee may only work within the scope it holds. Property management, facility management and auctions are restricted to licensed establishments, so an individual broker license is not enough to run them.

For an establishment, the conditions are a valid CR describing the licensed activities, with brokerage under code 682010, and a responsible manager who has completed REGA's qualification courses. The license is valid for one year and can be extended up to five years. Contracts follow REGA templates and are deposited on the platform, the license number appears on contracts and advertisements, and every advertisement needs its own license. Practicing without a valid license is a listed violation with fines that rise for repeat offenses.

Real estate development is one of the few activities on MISA's list of special conditions. Under the investor guide (12th edition, April 2025), the value of each project must be at least SAR 30 million, counting land and buildings, and the property must sit outside Makkah and Madinah.

Buying or selling a project property needs a separate MISA approval. The application includes a total project cost report from an engineering office accredited by the Saudi Council of Engineers and the title deed. The developer must use the land for the approved purpose within five years.

Selling units before completion brings in REGA's off-plan framework. Wafi licenses off-plan sales and keeps the register of real estate developers, so a developer planning to fund construction through off-plan sales should build Wafi registration into the project timeline from the start.

Two sets of rules are easy to mix up. MISA's approval service lets a registered company own property it needs for its activity, such as its headquarters, staff housing or warehouses, outside Makkah and Madinah. The Non-Saudi Real Estate Ownership Law, in force since 22 January 2026, governs ownership by non-Saudi individuals and companies more broadly.

Under the 2026 law, ownership is permitted in geographic zones approved by the Council of Ministers, including areas of Riyadh and Jeddah. In Makkah and Madinah, ownership is limited to Saudi companies and Muslim individuals. Applications go through REGA's Saudi Properties portal, and non-Saudi companies with no presence in the Kingdom first register with the Ministry of Investment to obtain a unified number.

A brokerage does not need to own property to operate, so this law matters most to developers, investors and clients you advise. Check the zone map on the portal, and the fees that apply, before any purchase.

A limited liability company suits most brokerage and property-services businesses. A developer raising capital from several investors may be better served by a joint stock company or Simplified JSC. The recurring calendar adds FAL renewals, Ejar and advertising licenses to the standard items: the annual MISA registration update, the annual Commercial Registration confirmation, VAT returns, GOSI contributions, and audited statements with the Zakat or income tax return.