Housing Minister Sets Roadmap to Regulate Real Estate Market and Protect Buyers” and Developers” Rights
Eng. Randa Al-Minshawi, Minister of Housing, Utilities, and New Urban Communities, emphasized that the continuous expansion of the real estate sector requires establishing clear regulatory rules governing the relationship between the state, developers, and buyers to safeguard all parties' rights and support long-term investment.
Unified Rules and Extensive Discussions with Developers
Al-Minshawi explained that the Ministry held several discussion sessions with real estate developers to agree on regulatory mechanisms within the sector, stressing the importance of formulating unified rules that strike a fair balance between protecting developers' investments and guaranteeing consumers' rights.
Real Estate Developers Federation Law to Enhance Transparency and Trust
The Minister noted that work is ongoing to regulate the sector through the "Real Estate Developers Federation Law," which aims to define the obligations of real estate development companies and govern their activities, thereby boosting market confidence and providing a legal environment that supports and encourages investment.
Separate Bank Account for Each Project and Mandatory Timelines
She added that the draft law includes binding regulations; most notably opening an independent bank account for each individual project, strict adherence to specified implementation timelines, and regulating unit sales advertising and marketing.
Financial Regulations to Protect Cash Flows and Buyers
The draft law also mandates developers to deposit dedicated funds into the project account under mechanisms designed to preserve cash flows and secure buyers' money, ensuring the regularity of construction, sales, and delivery terms.
An Investment Environment Based on Transparency and Compliance
The Minister of Housing concluded by pointing out that regulating the real estate market is a strategic step toward protecting all stakeholders and establishing an integrated investment environment built on transparency and clear legal obligations.