The General Manager of Strategic Communications at the Saudi General Authority for Real Estate, Taysir Al-Mufraj, states that the approval of the Saudi Cabinet for the Real Estate Contributions System as an extension of the legislative system that was approved in this exceptional year for the real estate sector, Invest-Gate reports.

In an interview with “Al Arabiya”, Al-Mufraj explained that this system is a new financing channel for real estate development projects that complements existing channels such as real estate funds.

Al-Mufraj clarifies that the purpose of this system is to regulate these contributions and preserve the rights of all parties involved, which is one of the most important objectives of this legislation and other real estate legislations,” adding, “This system will enhance the confidence of stakeholders in the real estate market and investment opportunities by introducing a new channel for project financing.”

Also, Al-Mufraj revealed some differences between the real estate contribution system and the Real Estate Investment Trust (REIT) system. The latter is overseen by the Saudi Arabian Monetary Authority with high governance and professionalism, and its experience in this field is excellent, especially in terms of protecting rights and governing its operations.