Starting a real estate development in Saudi Arabia usually involves several steps before construction begins. Land documentation is only one part of the process. Depending on the type of development, developers may also need engineering approvals, municipal permits, developer qualification, financial documentation, and additional licensing if units will be sold or leased off-plan.

Residential, commercial, and off-plan developments do not always follow the same regulatory path. Roshem, which has been active in Saudi real estate since 2003 and has developed residential projects in Jeddah, provides one local example of how legal, technical, and financial work eventually comes together in a completed development

Table of Contents

1. The Legal Position of the Property
2. Developer Qualification and Registration
3. Engineering Plans and Technical Documentation
4. Before Construction Starts
5. Financial Documentation and Project Feasibility
6. Selling Before Completion: Off-Plan Licensing
7. Construction and Ongoing Compliance
8. Looking at Project Readiness
9. What Buyers See in Jeddah?

The Legal Position of the Property

Before licensing or construction can move forward, the developer's legal right to develop the property needs to be established.

For off-plan projects, REGA requires valid property registration documentation. Where the developer does not own the land, agreements with the landowner or usufructuary may also be required to establish the right to carry out the development.

This is common in development partnerships, where one party owns the land while another takes responsibility for planning and delivering the project. In such arrangements, the agreement between the parties forms part of the documentation supporting the development.

The documents required will depend on the ownership structure and the nature of the project.

Developer Qualification and Registration

Saudi regulations may also place obligations on the company responsible for the development.

Under REGA's implementing regulations for off-plan projects, a legal person applying for registration in the Developers' Register must have a valid commercial registration and obtain at least 35 out of 100 points under the applicable evaluation criteria. A reassessment may be requested if the developer's capabilities later improve.

The evaluation can take into account financial standing, previous projects, organisational structure, technical capabilities, and other supporting information.

Documents requested as part of the process may include:

• Financial statements prepared by a certified accountant
• Credit information
• Details of completed or ongoing projects
• Organisational information
• Qualified engineering and technical staff
• Relevant ZATCA and social insurance documentation
• Professional qualification or classification certificates where applicable

REGA's procedural framework also refers to documents such as a commercial registration covering real estate development activity, evidence of completed projects, financial statements, and recent credit information.

A separate electronic Real Estate Developer Qualification service is available through Balady as part of the wider government framework used to register and qualify developers for relevant activities.

Engineering Plans and Technical Documentation

Approved architectural and engineering plans form part of the documentation required for an off-plan project license.

The proposed development must be supported by the technical documents required for approval, including architectural designs and engineering drawings. These sit alongside the legal and financial information submitted for the project.

The Saudi Building Code is also relevant during the design stage and establishes standards across different areas of building and construction.

Design teams may need to coordinate architectural, structural, and other technical elements before construction begins. Decisions made while plans are still being developed are generally easier to address than changes introduced after work has started.

Before Construction Starts

A building permit is one of the central approvals in the development process.

Balady's permit services involve the authorised engineering office, architectural and structural designs, technical review, and supporting documentation. The documents requested can vary according to the project and the service involved.

Balady may request several documents, including:

• Valid property documentation
• A cadastral report for construction
• Architectural and structural designs
• Engineering-office agreements
• A supervising engineering office
• A construction contractor
• Soil study reports
• Latent defects insurance
• Additional studies where required

Ownership records, engineering documents, supervision arrangements, and other supporting information must be consistent with the proposed development.

For a more detailed explanation of the application process, Roshem's guide on Building Permit in Saudi Arabia covers the subject separately.

Financial Documentation and Project Feasibility

Financial planning becomes especially relevant when a development will be sold or leased before construction is complete.

REGA requires an off-plan project feasibility study prepared by a consulting firm. The study must address estimated project costs, expenditure items, cash flow, and the expected implementation period. It may also cover construction and marketing estimates, administrative and financial expenses, expected unit delivery schedules, and anticipated funding sources.

The feasibility study sets out how the project is expected to be funded and delivered while buyers may be making commitments before construction is finished.

Licensed off-plan projects are also subject to escrow arrangements. Each project has its own designated account under the applicable framework, with project funds handled according to the relevant rules.

Selling Before Completion: Off-Plan Licensing

Marketing or selling units before completion brings additional controls into the project.

Developers engaging in regulated off-plan activity must be registered in the Developers' Register, while the project itself requires the relevant license before regulated marketing or sales can take place.

The licensing application may include:

• A commercial registration covering real estate development activity
• Chamber of Commerce membership
• Credit information
• A valid building permit
• Property registration documentation
• Landowner or usufruct agreements where applicable
• Approved architectural and engineering plans
• A consultancy agreement
• A certified public accountant agreement
• A feasibility study
• A sales contract template
• An escrow account agreement

REGA also regulates reservation amounts collected during the applicable marketing stage. Developers must disclose the project's current status and future plans. Reservation amounts may not exceed 5% of the value of an individual unit and must be deposited into the designated escrow account under the applicable rules.

Construction and Ongoing Compliance

Receiving the required permit does not give a project unlimited freedom to change once work begins.

Construction is expected to follow the approved plans and applicable technical standards. Engineering supervision and the responsibilities of the professionals involved continue throughout the building phase.

Infrastructure, utilities, access, and other project-specific matters may also require coordination between several parties. Changes introduced during construction need to be considered against existing approvals and applicable procedures.

Looking at Project Readiness

Property records, engineering plans, permits, and financial documents serve different functions, but they eventually meet within the same development process.

The property documentation establishes the legal position of the land. Developer qualification relates to the company responsible for the development. Engineering plans and permits govern the physical project, while feasibility studies and escrow arrangements become particularly relevant when units are offered before completion.

Before moving forward, project teams may need to review:

• The legal right to develop the property
• Applicable developer registration or qualification
• Approved architectural and engineering documentation
• Municipal permits and project-specific supporting documents
• Financial feasibility documentation
• Off-plan licensing and escrow obligations, where relevant

The exact combination depends on the size, ownership structure, intended use, and nature of the development.

What Buyers See in Jeddah?

By the time a residential project reaches buyers in Jeddah, much of the regulatory work has already taken place. What appears on the market is the apartment, the building, the specifications, and the location. The documentation and approvals behind it are rarely visible.

Roshem's residential portfolio includes projects in several Jeddah neighborhoods, including Al Fayha, Al Nahdah, and Al Naim. Among the developments listed on its projects page are Madain Al Fahd, Darb Al-Haramain 2 – Five Towers, Luxury – Al Naim, Renaissance – Al Nahdah, and several Roshem Heights buildings.

The developments differ in both location and specifications. Darb Al-Haramain 2 – Five Towers, for example, includes smart-home systems, fingerprint-access automatic doors, central gas, CCTV, thermal insulation, and waterproofing.

For someone comparing residential properties, the finished unit will naturally be the first thing to consider. The developer behind the project is worth examining as well, particularly when comparing off-plan developments or companies with several projects in the city.

Roshem's guide on choosing a real estate developer in Jeddah discusses factors such as previous projects, transparency, developer experience, and knowledge of the local market.

You can also explore Roshem's projects to review its residential developments in Jeddah.

A Broader View of Project Readiness

Real estate development brings legal, financial, engineering, and construction work into the same project. These areas may begin separately, but delays or missing documentation in one area can affect progress elsewhere.

For off-plan projects, the scope expands further to include project licensing, marketing controls, sales documentation, and the handling of buyer funds.

Roshem reports more than 8,000 implemented residential units, over 7,000 sold units, and more than 800 units under construction as part of its broader residential development activity.

Conclusion

Real estate development is often judged by what people can see: the building, its location, the quality of the finishes, and the final unit. Much of the work that determines whether a project reaches that stage happens much earlier, through documentation, approvals, and regulatory procedures that buyers rarely encounter directly.

For anyone exploring residential projects in Jeddah, looking beyond the visible features can provide a fuller picture of both the development and the company behind it. Explore Roshem's residential projects to learn more about its developments across Jeddah and discover the properties currently available through the company.

أهم الأسئلة الشائعة حول شروط التطوير العقاري في السعودية بالنسبة للمطورين

ما هي شروط ترخيص مطور عقاري؟

يتم الحصول على رخصة مطور عقاري من خلال المنصات الإلكترونية المعتمدة من الدولة كما في منصة بلدي، والتي تساعدك في الحصول على شهادة التأهيل كمطور عقاري بعد إدراج كافة المستندات المطلوبة مثل شهادة الاشتراك في عضوية الغرفة التجارية والصناعية، شهادة تأسيس الشركة من بدايتها، السجل الائتماني للشركة وبعد رفع كافة الأوراق المطلوبة يمكنك متابعة الطلب والذي قد يستغرق 21 يوم عمل حتى صدور الترخيص.

كم يأخذ المطور العقاري؟

للإجابة عن هذا التساؤل يمكن أن تنقسم لقسمين منها كم يأخذ المطور العقاري كنسبة ربح من بيع الوحدة السكنية بعد إكتمال البناء والبيع وهي نسبة متغيرة وتتوقف بدورها على عدة عوامل منها 

موقع المشروع ونوع التمويل لبدء المشروع بحيث نجد أن المشاريع القائمة على تمويل بنكي تقل معها نسب الأرباح، وكذلك فترة بيع وتسويق المشروع هل طويلة أم قصيرة نظرًا لمدى الإقبال على طبيعة الخدمات المقدمة في المشروع والكثير من العوامل الأخرى.

والقسم الثاني من الإجابة يمكن أن يكون كم يأخذ المطور العقاري كنسبة حجز الوحدات في حالة الحجز بنظام البيع على الخارطة في المشروع وهي نسبة لا تتعدى 5% والتي قد وضحتها الجهات المختصة بتنظيم القوانين العقارية في السعودية.

 

ما هو تصنيف المطور العقاري؟

تصنيف المطور العقاري هو تقييم معتمد من وزارة الشؤون البلدية والقروية والإسكان في السعودية بحيث يتم فيه تقييم قدرات المطور العقاري من حيث القدرات المالية والفنية والإدارية وذلك لمعرفة قدرات المطورين المحليين على تولي المشاريع العقارية الكبرى داخل الدولة وخارجها.  وهناك أنواع من تصنيف المطورين وهي 

1. مطور عقاري فردي
2. مطور عقاري مؤسسة كما في الشركات المطورة التي تمتلك كيان تجاري له السجلات التجارية الخاصة به.
3. المطور الرئيسي وهو خاص بكبار المطورين المالكين لمشاريع كبيرة ويقومون بتنفيذها على مراحل أو بالتعاون مع مطورين فرعيين.
4. مطور فرعي وهو من يتولى أجزاء من المشاريع تحت إشراف المطور الرئيسي.