Property Development Approvals and Permitting in Riyadh

Overview of the Approval Process

Developing real estate in Riyadh requires navigating a centralised, highly digitalised regulatory framework governed by the Ministry of Municipalities and Housing (MOMAH) and the Real Estate General Authority (REGA). The approval process moves sequentially through land title verification, corporate registration, architectural and engineering design approvals, off-plan licensing (if selling before completion), construction supervision, and final occupancy certification. Most municipal interactions are processed digitally via MOMAH’s Balady platform, while developer licensing and sales oversight are managed through REGA’s Etmam platform.

Stage 1: Developer Entity Registration and Land Verification

Before initiating design work or applying for building permits, a corporate developer must establish legal standing to hold land and conduct development. Commercial entities must hold a valid Commercial Registration (CR) specifying real estate development activities issued by the Ministry of Commerce. Non-Saudi investors operating under the Law of Real Estate Ownership and Investment by Non-Saudis must secure an investment licence from the Ministry of Investment (MISA). Foreign developers are subject to a minimum project development cost of SAR 30 million and must complete construction within five years of acquiring the property.

Land ownership must be verified and registered. Title deeds are verified through the Real Estate Registry (RER) or the Ministry of Justice’s digital portal, confirming that the land is free of encumbrances, boundary disputes, or White Land Tax liabilities.

Stage 2: Master Planning and Zoning Modifications

Zoning regulations, land-use classifications, floor-area ratios (FAR), and maximum height limits in Riyadh are set by MOMAH and the Royal Commission for Riyadh City (RCRC). If a proposed project conforms to existing zoning, the developer proceeds directly to site plan approval.

If the land requires subdivision, parcel consolidation, or a land-use reclassification, the developer must submit a master plan application via the Balady platform. The application undergoes review by the local municipality (Amanat Riyadh) and RCRC to assess infrastructure capacity, traffic impact, and environmental integration. Standard master plan subdivision approvals take between two and four months. Discretionary re-zoning requests require higher-level municipal committee reviews and can extend timelines by six to twelve months.

Stage 3: Engineering Design and Building Permit Issuance

To apply for a building permit, developers must engage a licensed Engineering Design Office registered with the Saudi Council of Engineers. The engineering office prepares structural, architectural, MEP (mechanical, electrical, plumbing), and fire safety drawings in full compliance with the Saudi Building Code (SBC).

Applications are submitted through the Balady platform. The platform routes technical plans to relevant authorities, including the General Directorate of Civil Defense for life safety and fire compliance, the Saudi Electricity Company (SEC) for power loads, and National Water Company (NWC) for utility connections.

Once all technical reviews are cleared and municipal fees are paid, MOMAH issues the Building Permit. The permit is valid for three years from the date of issuance. The permit issuance stage typically takes between 30 and 60 days following submission of complete drawings.

Stage 4: Off-Plan Sales Qualification and Escrow Setup (WAFI)

Developers intending to market or sell units off-plan prior to construction completion must comply with the Off-Plan Sale and Lease Law managed by REGA. The developer must apply for inclusion in the Developers Register via the Etmam platform, paying a registration fee of SAR 50,000. Admission requires achieving a minimum score of 35 out of 100 points on REGA’s scoring matrix, which evaluates financial standing, track record, and technical capacity.

Following corporate registration, the developer must apply for a specific project off-plan licence. Requirements include:

• Opening a dedicated project escrow account at a Saudi Arabian Monetary Authority (SAMA)-regulated bank.
• Appointing an independent engineering consultant to monitor project milestone progress.
• Appointing a chartered accountant to audit project financial flows.
• Providing architectural plans, financial feasibility studies, and sample purchase contracts.

All buyer funds during construction are paid directly into the escrow account and disbursed in tranches tied to certified construction milestones. The off-plan project licensing process typically takes 45 to 75 days.

Stage 5: Construction Oversight and Mandatory Inspections

Before physical site works begin, the developer must contract a licensed Supervising Engineering Office and notify the municipality through Balady. Construction must adhere strictly to the approved SBC designs.

Mandatory site inspections are conducted at critical structural milestones, including foundation laying, reinforced concrete pours, structural framing, and final utility hook-ups. The Supervising Engineering Office logs inspection reports on the Balady platform. Municipal inspectors conduct periodic audit checks to verify compliance.

Stage 6: Completion Certificate and Handover

Upon completion of physical works, the developer initiates the closeout phase to obtain the Completion Certificate (Occupancy Certificate) from MOMAH via Balady.

The closeout sequence requires: 1. Final inspection and clearance from the General Directorate of Civil Defense verifying fire suppression and safety systems. 2. Final sign-off from the Supervising Engineering Office certifying construction according to approved plans. 3. Final connections and meters installed by SEC and NWC.

Once clearances are logged, MOMAH issues the Completion Certificate. This document is essential for legally occupying the building, connecting permanent utility lines, and transferring individual property unit title deeds to buyers through the Real Estate Registry (RER) or Ministry of Justice Notary system. The closeout and occupancy certification stage generally takes 30 to 45 days.