The Saudi Arabian Real Estate Registry announced today (Wednesday) the launch of the “Real Estate Registry – Business Portal,” a significant step in the digital transformation of the real estate sector. This portal is a comprehensive digital platform specifically designed to serve the business sector, including real estate developers, companies, and financing entities, with the aim of enabling partnerships with the private sector and enhancing the efficiency of real estate wealth management.

Strategic background within Vision 2030

The launch of this portal comes within the broader context of the Kingdom's efforts to achieve the goals of Vision 2030, which places digital transformation and the regulation of vital sectors at the heart of its priorities. The real estate sector has long been one of the most important pillars of the national economy, and it has witnessed major regulatory initiatives in recent years to increase its transparency and reliability. Establishing the Real Estate Registry itself is a pivotal step towards creating a unified and reliable record of real estate ownership, thus eliminating the challenges of traditional documentation and ushering in a new era of accuracy and efficiency. The "Business" portal falls under the "Easier" Real Estate Registry strategy, which aims to build a sophisticated digital infrastructure that serves all stakeholders.

The importance of the portal and its expected impact

The launch of the “Aamal” portal is expected to have a positive and tangible impact on the investment environment in the Saudi real estate sector. Domestically, the portal will expedite real estate procedures, reduce reliance on paperwork, and provide companies with accurate and up-to-date data in real time. This will boost investor confidence and encourage further capital investment in major real estate projects. Regionally and internationally, this step positions the Saudi real estate market among the world’s leading markets that leverage technology to ensure transparency and protect rights, making it more attractive to foreign direct investment.

Integrated services and a unique digital experience

The CEO of the Real Estate Registry, Dr. Mohammed Al-Sulaiman, explained that the portal represents a key milestone in the Registry's strategic priorities, providing a seamless and secure user experience. The portal offers a comprehensive suite of services, including the management of real estate rights and transactions, transaction records, and access to interactive maps and official documents. It also enables API integration with internal systems of various entities, account and authorization management, and electronic billing and payment services. To ensure a superior experience, dedicated relationship managers will be assigned to support the needs of each beneficiary, reflecting the Real Estate Registry's commitment to providing innovative solutions that meet the requirements of the private sector and support its sustainable growth.

In a strategic move aimed at enhancing the business environment and supporting small and medium-sized enterprises (SMEs), the Saudi Cabinet approved a significant amendment to the Commercial Franchise Law. This amendment exempts certain franchisors from the requirement of prior operational experience, based on four specific criteria. This decision aligns with the goals of the Kingdom's Vision 2030, which seeks to diversify the economy and stimulate innovation and entrepreneurship.

Background to the decision and the importance of the franchise system

The franchise system in the Kingdom is a cornerstone for supporting the growth and expansion of local brands, as well as attracting international brands. Historically, Article 5, Paragraph 1 of the system stipulated a fundamental condition to protect investors and franchisees: “A franchise opportunity may not be offered or a franchise granted unless the franchise business has been operated according to the franchise business model for a period of no less than one year by two individuals or at least two different points of sale.” The purpose of this condition was to ensure that the business model had proven its success and replicability before being offered as an investment opportunity to others, thus reducing risks for new entrepreneurs.

The four criteria for exception and their expected impact

With the move towards a more resilient and dynamic economy, the Cabinet's decision introduced carefully considered exceptions that balance protection and stimulus. These criteria are:

• Belonging to promising sectors: Franchise businesses must fall within the sectors targeted by Vision 2030, such as tourism, entertainment, technology, or advanced industries. This criterion aims to accelerate the growth of these vital sectors and increase the number of companies operating within them.
• Providing a comprehensive business model: The franchisor is required to submit a clear and detailed business model, including operational manuals, market analysis, and a feasibility study demonstrating the project's viability. This criterion replaces the requirement for practical experience with rigorous planning and analytical requirements.
• Innovation and Economic Contribution: Franchise activity must be innovative, offering a product or service that effectively contributes to national economic development and meets local market needs. This requirement fosters the emergence of unique brands that fill market gaps and support local content.
• Linking the financial consideration to revenue: The fourth standard stipulates that the franchisor should not impose any financial consideration on the franchisee before operations commence and revenues are generated. The consideration should be linked to the actual financial performance of the project, as defined in the agreement. This measure reduces financial risk for the new investor and ensures the success of both parties.

The economic and future impact of the decision

This decision is expected to have a multifaceted positive impact. Locally, it will encourage entrepreneurs and innovators to transform their projects into scalable brands through the franchise model, leading to job creation and supporting the growth of small and medium-sized enterprises (SMEs). Regionally and internationally, this regulatory flexibility makes the Saudi market more attractive to emerging global brands that may not meet the pre-operational requirements but possess strong and innovative business models, thus enhancing the Kingdom's competitiveness as a leading investment destination.