REGA and Wafi Glossary
Ejar: REGA’s mandatory digital rental contract registration platform. All residential and commercial leases in Saudi Arabia must be registered on Ejar. The platform provides verified rental data essential for tokenized property yield calculations. See detailed Ejar analysis.
Escrow Account (Wafi): A SAMA-licensed bank account held by an independent escrow agent, mandated for all off-plan real estate sales under the Wafi program. Developer access to funds is conditional on verified construction milestone completion. Critical infrastructure for tokenized off-plan offerings.
Fal License: REGA license required for real estate brokerage and marketing activities. Tokenization platforms marketing Saudi property tokens may require Fal licensing in addition to CMA authorization.
Mulkiya: The digital property title registration system administered by the Ministry of Justice with REGA oversight. Mulkiya replaced the traditional “sakk” deed system and is now integrated with REGA’s SettleMint blockchain infrastructure through the Real Estate Registry (RER). Mulkiya 2.0 (planned 2027) will support fractional digital ownership registration.
Real Estate General Authority (REGA): The unified regulator for Saudi real estate transactions, established 2017. Controls property registration, developer licensing, brokerage regulation, off-plan sales (Wafi), and rental markets (Ejar). REGA completed the first national-scale real estate tokenization on SettleMint blockchain infrastructure in late 2025, including a three-phase roadmap (Core Registry, Tokenized Marketplace, Open API Framework), with 9 PropTech sandbox platforms approved and Ghanem launching the first regulated fractional ownership.
Sakk (Title Deed): Traditional paper-based property title document, being replaced by digital Mulkiya registration. In transitional areas, both sakk and Mulkiya records may exist — tokenization platforms must verify title through the most current registration system.
Wafi Program: REGA’s mandatory framework governing off-plan real estate sales, requiring: developer licensing, escrow account establishment, construction progress verification by independent engineers, completion guarantees (bank guarantee or insurance), and Wafi license for each project. See detailed Wafi analysis.
Wafi License Number: A unique identifier issued by REGA for each Wafi-approved off-plan project. Must appear in all marketing materials including tokenized offering documents. Investors should verify the license number in REGA’s public registry before investing.
Developer Classification: REGA’s tiered system categorizing developers based on capitalization, track record, and project portfolio. First-tier developers receive expedited regulatory processing and enhanced Wafi licensing — advantages relevant to tokenization platform due diligence.
Construction Milestone Certification: Formal verification by a Saudi Council of Engineers-registered inspector that a construction phase is complete, triggering Wafi escrow fund release. For tokenized offerings, milestone certifications trigger token NAV recalculations and investor disclosures.
Aqar (Real Estate Advertising License): REGA license required for marketing real estate properties, including digital marketing. Tokenization platforms advertising Saudi property tokens must hold or operate through an Aqar-licensed entity for the property marketing component of their operations — separate from CMA authorization for the securities marketing component.
Building Completion Certificate (Shahada Injaaz): Official certificate issued by the relevant Saudi municipality confirming that construction is complete and the building meets code requirements. For tokenized real estate transitioning from off-plan to completed status, the completion certificate triggers: escrow account closure, transition from development-stage to stabilized NAV calculation, and activation of rental income distribution to token holders.
Community Association (Jam’iyah): REGA-governed body managing common areas and shared facilities in residential communities. Community association fees — covering maintenance, security, landscaping, and common area utilities — are deducted from gross rental income before token holder distributions. Roshn communities and other master-planned developments have established association structures with transparent fee schedules.
Freehold Ownership (Mulkiyah Hurra): Full ownership of both the building and the underlying land. Under Saudi law, freehold ownership is the dominant form for Saudi nationals. Foreign ownership was expanded in 2021 to include freehold rights in most areas. For tokenization, freehold properties provide the strongest legal foundation because token holders (through the SPV) own both the physical structure and the land — eliminating leasehold expiry risk.
Leasehold (Haq al-Intifa’): Right to use a property for a specified period without owning the underlying land. Some Saudi commercial properties operate under leasehold arrangements with government or institutional landowners. Tokenized leasehold properties carry leasehold expiry risk — the token value declines as the lease term shortens, requiring different valuation models than freehold tokens.
Off-Plan Sale (Bai’ ala al-Khartah): Sale of a property before construction is complete, governed by Wafi program requirements. Off-plan tokenization represents a distinct risk category from completed property tokenization: construction completion risk, developer counterparty risk, and market absorption risk at delivery date. Wafi escrow requirements mitigate developer counterparty risk but do not eliminate construction delay risk.
Property Appraisal (Taqyeem): Formal valuation of a property by a REGA-accredited appraiser following Saudi Valuation Standards. Required for: initial token pricing (offering prospectus valuation), periodic NAV calculations (typically quarterly revaluation), and property disposition (exit valuation for token redemption). REGA maintains a public register of accredited appraisers, and CMA securities rules require independent appraiser selection for tokenized offerings.
Real Estate Transaction Tax (RETT): The 5% tax applied to real estate transfers in Saudi Arabia. RETT is payable by the seller (or the SPV on disposition of the underlying property). For tokenized real estate, RETT treatment of secondary market token trades is under regulatory review — if each token trade is classified as a property transfer, the 5% RETT would eliminate secondary market liquidity. Current CMA-REGA coordination suggests RETT will be applied only to the underlying property transaction (acquisition and disposition) rather than to individual token trades.
Usufruct (Haq al-Intifa’): Right to use and benefit from a property without owning it. SAMA’s mortgage regulations recognize usufruct-based structures as eligible for financing, enabling tokenized ijarah structures where the SPV holds usufruct rights rather than outright ownership.
See also: Wafi Compliance | REGA Property Registration | REGA Entity Profile | CMA Terminology | Vision 2030 Glossary | Due Diligence Checklist | Investment Terminology | Blockchain Standards
Updated March 19, 2026