Samer Choucair: Mandatory FAL Licensing Strengthens Transparency and Investor Confidence in Saudi Real Estate
Entrepreneur Samer Choucair said the Saudi Real Estate General Authority’s decision requiring all advertisers, including influencers, to obtain a FAL licence before promoting property projects, rather than relying solely on a Mawthooq licence, represents a significant advance in real estate marketing governance and establishes transparency as an essential condition for sustaining institutional capital flows.
Choucair explained that the regulatory measure strengthens market credibility and reduces the risks associated with unregulated marketing and misleading advertisements.
This should help limit sharp market corrections caused by exaggerated expectations and support more stable investment returns over the medium and long term.
Samer Choucair noted that the tighter regulations are aligned with the objectives of Saudi Vision 2030 to improve the efficiency of the non-oil sector and attract foreign direct investment and sovereign wealth fund capital, particularly amid the strong growth of major property developments in Riyadh and the Kingdom’s economic zones.
He emphasized that transparency and reduced information asymmetry have become fundamental components of investors’ risk-pricing models.
Developers and brokers complying with the new standards will gain a stronger competitive advantage in attracting bank financing and institutional capital compared with entities relying on conventional or unlicensed marketing.
Samer Choucair added that the regulatory measure will make the Saudi real estate market more resilient and attractive amid fluctuations in global interest rates and liquidity risks associated with illiquid assets.
Concluding his remarks, Samer Choucair emphasized that capital allocation in emerging markets increasingly favours environments supported by rigorous regulatory frameworks.
He said the implementation of FAL licensing will direct capital toward higher-quality assets and companies with strong governance, further strengthening Saudi Arabia’s position as a mature regional centre for long-term real estate investment.