Saudi Arabia’s Real Estate General Authority has unveiled the second edition of its Regulatory Sandbox, a flagship initiative under the Saudi PropTech Hub, as it intensifies efforts to accelerate technology adoption across the Kingdom’s real estate sector.

The launch follows the approval of the sandbox’s regulatory framework, signaling a more structured push to prepare the market for next-generation operating models while ensuring compliance and consumer protection.

According to REGA, the Regulatory Sandbox enables companies to test innovative real estate solutions within a controlled regulatory environment for a defined period. The model is designed to strike a balance between fostering innovation and maintaining oversight, allowing startups to align with regulatory requirements before a full-scale market rollout. At the same time, it aims to enhance transparency, efficiency, and trust across the sector.

Participating companies will move through four key stages: an application phase, a readiness assessment, a testing period ranging from six to 24 months based on clearly defined performance indicators, and a final exit phase. Successful models that meet regulatory standards may then be transitioned to the open market.

The second edition introduces several tracks, including a fractional ownership pathway under the real estate tokenization framework. This track is intended to pilot new investment and financing mechanisms that can expand property supply and improve asset utilization.

In its first cohort, the sandbox supported nine digital platforms focused on fractional ownership. These platforms have since met regulatory requirements and are now operating officially in the market, marking early validation of the initiative’s approach.