Saudi bans promotion of off-plan developments

NO PROMOTION: Developers in the Kingdom are no longer allowed to promote off-plan real estate projects at home or abroad. (Getty Images)

The promotion and sale of real estate development that are only at the planning stage have been banned in Saudi Arabia, it was reported on Tuesday.

The new dictate was part of a set of new rules passed by the Cabinet on Monday and covers the sale of residential, commercial, office, service and industrial units.

All advertisements and promotional material in local and foreign media has been outlawed , without the  according to Saudi daily Saudi Gazette.

The ban also includes marketing and events in the Kingdom or abroad to promote off plan developments – without the consent of the property committee.

The real estate measures will be presided over by specially convened committee will include representatives from the ministers of Commerce and Industry, Municipal and Rural Affairs, the Saudi Arabian Monetary Agency and the General Commission for Housing.

Developers will have to apply to the committee before being able to go-ahead with any project and will have to prove including technical and financial capabilities.  

Among other conditions to be drawn up by the committee are the rights of consumers and measures to protect them from being exploited by real estate developers and brokers, the newspaper added.

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READERS' COMMENTS

Sense at Last
Posted by Charles, Dubai, UAE on Wednesday 11 March 2009 at 02:56 UAE time


Good on the Saudis for bringing some sense to the Middle East property market.

If they protect consumers from scams, poor products and broken promises they will lead the way.

Can the UAE rise to this challenge?

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