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Saudi Arabia’s Real Estate General Authority (REGA) has launched the second edition of its Regulatory Sandbox under the Saudi PropTech Hub, positioning it as a route for firms to test new real estate business models under regulatory supervision, including a “fractional ownership pathway under the real estate tokenization framework,” according to the program description reported by Fast Company Middle East.
The second-edition sandbox is described as running through an application and readiness assessment before a live testing phase lasting 6 to 24 months, followed by an “exit” stage that can allow market launch if regulatory standards are met, with applications reported as open until April 30, 2026. The Fast Company report does not set out the underlying legal mechanics of the “tokenization framework,” but it frames the pathway as a supervised track for fractional ownership models.
REGA’s first sandbox cohort focused on fractional ownership and supported nine digital platforms that later “met regulatory requirements” and now operate in the market, the outlet reported, while Arabic-language coverage listed the platforms by name as examples of solutions that moved through the first edition.
On REGA’s own Saudi PropTech Hub page, the authority describes itself as the “legislator and supervisor of the real estate sector” and presents the Regulatory Sandbox as a controlled environment for testing products and technologies under a flexible framework and REGA supervision. That positioning matters because it places sandbox participation within a supervisory process rather than a standard commercial licensing route, with progression tied to meeting regulatory requirements.
Earlier reporting on the sandbox framework said REGA can issue temporary permits for a limited period and defined customer segment, and that acceptance into the sandbox does not amount to full regulatory approval or exemption from compliance obligations. A separate Business Wire release describing one participant, Ghanem Company, framed its fractional ownership launch as operating under REGA’s sandbox and stated it was integrated with the Real Estate Registry for official ownership recording, illustrating how sandbox-tested models may be structured operationally when taken to market.
In practice, the second-edition sandbox primarily affects proptech issuers and platforms developing fractional ownership and tokenization-adjacent structures, which can apply to test within REGA’s supervised environment rather than launching directly to the open market. It also affects investors and market intermediaries to the extent participation may constrain offerings to defined testing parameters and regulatory conditions during the permit period, while giving REGA a structured channel to monitor and assess models before broader rollout.
