Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.Find out more
We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
With such activities on the increase, the Ministry of Commerce and Industry (“the Ministry”) has recently issued a new Foreign Property Marketing Licence and has set out the requirements to market foreign property off-the-plan in KSA.
The purpose of introducing the Foreign Property Marketing Licence is to put in place requirements that protect Saudi nationals concerning foreign real estate marketed to them within KSA. It is also consistent with the consumer protection policies behind the requirement for the Licence for the Sale of Units On-the-Map, which applies to the sale of property off-the-plan within KSA.
The Ministry has recently issued a circular confirming that, without obtaining an approval for a Foreign Property Marketing Licence, it is prohibited within KSA to offer any foreign real estate units for sales off-the-plan or to publish advertisements or to market foreign real estate units through the media or by any exhibitions.
REQUIREMENTS & CONDITIONS OF A FOREIGN PROPERTY MARKETING LICENCE
Some of the requirements to obtain a Foreign Property Marketing Licence include:
To achieve a certain level of disclosure and transparency and to ‘level the playing field’ between buyers and marketers of foreign property, some of the conditions imposed on licence holders include:
CARRYING OUT MARKETING AND ADVERTISING OF FOREIGN REAL ESTATE
Unsurprisingly then, it is a requirement to first have a Foreign Property Marketing Licence before commencing marketing activities, advertisements, seminars or exhibitions to promote any foreign real estate.
Some of the Ministry’s stipulations include that any advertisement:
The stability, growth and opportunities in the Kingdom of Saudi Arabia attract many, including property marketers. The Foreign Property Marketing Licence applies directly to the sale off-the-plan of foreign property of any type to nationals within KSA. A failure to obtain a Licence will leave both the developer and any promoter in KSA open to a range of penalties.
The contents of the agreement between the foreign developer and the KSA marketing agent needs to be drafted carefully to protect each party’s interests, to set out the necessary procedures for introducing Saudi buyers and to comply with the Foreign Property Marketing Licence requirements and other relevant laws that apply.
With increased interest in the Kingdom of Saudi Arabia, it is prudent for the KSA authorities to issue regulations which clarify the requirements for the sale of foreign property for buyers, Saudi real estate brokers and for foreign developers, especially at a time when such sales in KSA are so strong.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.