As stated by Abdullah Al-Hammad, the CEO of the Real Estate General Authority (REGA), Saudi Arabia is poised to introduce its inaugural legislation for the regulation of facility management within the real estate sector in the first quarter of 2024. This move underscores the authority's commitment to standardizing and overseeing facility management activities.

Abdullah Al-Hammad made this announcement during his address at the Middle East Facility Management Association Confex 2023, held in Riyadh from October 15 to 16. The primary objective of this legislation is to establish governance and control over facility management practices, thus enhancing their reliability and attractiveness for investment.

The real estate sector holds a vital role in the Saudi national economy, enjoying strong government support. Efforts have been made to organize and enhance the sector, improve regulatory mechanisms, increase its efficiency, stimulate investment, and bolster its contribution to the Gross Domestic Product (GDP). Statistics from the second quarter of 2023 indicate that the sector's GDP contribution reached 6.1%, while real estate activities' contribution to the non-oil sector reached 12.7%.

The Real Estate Brokerage Law is recognized as a significant step in advancing the real estate sector, facilitating its digital transformation, and serving stakeholders. This has transformed the sector into a vibrant and appealing investment destination, characterized by reliability and transparency across all real estate operations.

Sustainability in the operation of facilities and large-scale projects has been a crucial component of Saudi Arabia's national and digital transformation efforts, aligning with the goals of Vision 2030. The Saudi real estate sector plays a substantial role in the nation's economy, generating employment opportunities, driving infrastructure development, and serving as an attractive asset class for institutional investors.

Saudi Arabia's government is actively promoting the establishment of local businesses by foreign companies, aiming to diversify its economy away from oil-dependent revenues and create jobs. This initiative is fueling demand for new office spaces and facility management services. Moreover, Saudi Arabia is witnessing increasing requirements for new and refurbished office and residential properties, further amplifying the demand for facility management services.