The Cabinet has banned the promotion and sale of real estate on the basis of development plans on paper. The ban was contained in a set of rules that was passed by the Cabinet on Monday, governing the sale of residential, commercial, office, service and industrial units. The measures ban advertisements and other promotions of such real estate, including buildings, in local and foreign newspapers, without the consent of the committee concerned. Also, marketing for such properties, including the holding of exhibitions in the Kingdom or abroad, is not allowed without the committee's permission. The committee will include representatives from the ministries of Commerce and Industry, Municipal and Rural Affairs, the Saudi Arabian Monetary Agency(SAMA) and the General Commission for Housing. It will examine applications for real estate development. The Cabinet also tasked the committee with laying down the conditions that real estate developers must meet, including proof of their technical qualifications and financial capabilities. Among other conditions to be drawn up by the committee are clauses defining the rights of consumers, measures to protect consumers from being exploited by real estate developers and brokers, and the operational conditions in joint facilities of any real estate development project.
