The Gulf Real Estate Market Is Regulated By Commissions, Except In Kuwait And Oman

Real estate is a world-class development and critical industry, as well as an economic backbone. As a result, it dominates the economic landscape in many industrialised nations, with future growth plans based on cutting-edge scientific and technological knowledge.

While some Gulf countries have kept up with global changes by establishing real estate bodies to oversee and regulate the sector, Kuwait continues to lag behind, despite the fact that the country's real estate sector is advanced, second only to the oil sector, in terms of real estate investment and transaction volume, which exceeds billions of dinars annually, and includes activities such as buying, selling, leasing, owning, developing, and building.

Market participants believe that the establishment of a real estate authority will represent a qualitative leap for the sector, given the authority's goal of regulating the market, ending dealer suffering and problems, and removing intruders from all professions related to the real estate sector, particularly mediation and evaluation, as well as ending bureaucracy and slow transaction completion, and the judiciary on fraud operations and accountancy.

Due to the rapid and continuous change of finance ministers, in addition to the Covid crisis, realtors whose opinions were surveyed by the daily stated that expediting the establishment of a public real estate authority, especially after extensive studies were conducted on it by the World Bank in cooperation with the Real Estate Union, is still collecting dust in the drawers so far, despite the cost of those studies to the state, indicating that the establishment of the public real estate authority is still collecting dust in the drawers.

Examples of current Gulf real estate authorities include as follows:

UAE

The UAE is at the forefront of Gulf countries that have given the status of the real estate sector the utmost importance, particularly in Dubai, where it recently established the Real Estate Regulatory Agency, or "RERA Dubai," which deals with most of the policies and plans that help in promoting foreign investments and resolving disputes between tenants and property owners, and it has administrative independence and full legal authority.

RERA Real Estate aims to provide an effective legal framework for all workers in the Dubai real estate sector, and is working hard to develop all electronic services for real estate developers and investors, as well as supporting the insurance, legal, and banking sectors in order to improve mutual cooperation.

The Real Estate Regulatory Agency in Dubai offers a wide range of services, including real estate agency licencing, regulating and monitoring owners' associations that manage various buildings throughout the emirate, as well as registering and regulating lease contracts, publishing real estate sector studies, and regulating real estate advertisements in all local media and newspapers.

In addition to many other services and tasks, RERA Real Estate is responsible for licencing and regulating all real estate operations and exhibits, as well as fostering national involvement in the real estate industry in Dubai.

Saudi Arabia

Saudi Arabia, for its part, formed the Real Estate General Authority in 2017 with the goal of regulating, overseeing, and expanding non-governmental real estate activity in order to improve efficiency and stimulate investment in line with economic and social development goals.

The authority has all of the authorities necessary to accomplish its objectives, including the following:

Proposing real estate-related laws, regulations, and policies, as well as developing and overseeing the required strategies to execute its authorities.

— In collaboration with the appropriate authorities, licencing and overseeing real estate operations, establishing real estate standards, and arranging real estate exhibits.

— Laying the groundwork for calculating financial remuneration for real estate operations without regard to competition laws, stimulating real estate investment, and creating an adequate climate for fair competition in this industry.

— Collaboration with key authorities to guarantee that real estate infrastructure is integrated and that applicable national goals, policies, and plans are met.

— Maintaining stability and balance in the real estate industry through monitoring indicators.

— In collaboration with the competent authorities, establishing the necessary procedures to regulate and monitor real estate ads published in all forms of media.

— Conducting research, studies, and statistics in the field of real estate activities, as well as developing an electronic portal containing real estate information bases required for real estate activities, whether held by the Authority or by other interested parties, with periodic updates and distribution to those who need them.

Bahrain

In 2017, Bahrain passed legislation to govern the Real Estate Regulatory Agency, with the goal of creating an efficient and fair regulatory environment in the real estate market to encourage economic growth and investment.

The Corporation's primary responsibility is to develop and implement a national plan for regulating the real estate sector, which includes a strategy and general policy for the sector, as well as to collect and analyse data, information, and statistics related to the sector, so that the Corporation can serve as a major source of real estate data and information, as well as propose programs and policies that will benefit the sector.

Qatar

In Qatar, the Council of Ministers voted in December to take the necessary steps to establish a new real estate body to regulate and promote the industry, strengthen sector governance, increase real estate data availability, and encourage real estate investment.

The authority is also working on creating a digital platform that would gather and disseminate real estate data and statistics on the Qatari real estate market, as well as formulating rules in collaboration with the Qatar Central Bank to assist individual real estate financing.

Oman

Despite the importance of the real estate and market regulation sectors in Oman and Kuwait, there is still no authority in charge of them.

Realtors have stated that the Sultanate's real estate sector can recover by controlling legislation and laws related to real estate brokerage and development, emphasising that the presence of the Real Estate Regulatory Authority has become a must, as it will be the largest and most powerful enabler for the real estate sector in the Sultanate.

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