For decades, property investment in Saudi Arabia meant substantial capital, complex transactions, and barriers that kept most retail investors firmly on the sidelines. That model faces its first serious digital challenge.
Ghanem has gone live with fractional real estate ownership.
The platform launched under the Real Estate General Authority’s regulatory sandbox this week, allowing eligible Saudi investors to purchase registered shares in income-generating properties through an entirely digital process. It’s the first initiative of its kind operating within REGA’s controlled testing environment—a framework designed to balance innovation against the strict governance standards that define the Kingdom’s property sector.
The mechanics mark a departure from traditional ownership structures. Investors can now acquire officially recorded fractional stakes in real estate assets, with each share logged directly in the national Real Estate Registry. Ghanem’s integration with that registry system means ownership isn’t just digital—it’s formally documented in the same infrastructure that tracks conventional property transactions. The approach attempts to solve a persistent tension in emerging proptech: how to offer accessibility without sacrificing the legal clarity that protects investors.
Transparency sits at the core of the regulatory approval.
Every transaction flows through official channels. Registry integration ensures that fractional shares carry the same legal weight as traditional property ownership, at least within the sandbox’s parameters. REGA’s involvement signals the authority’s willingness to test new models whilst maintaining oversight—a calculated risk in a market where real estate represents significant household wealth and where regulatory missteps carry reputational costs.
“Launching fractional ownership under the REGA Sandbox is a major milestone for Ghanem and the Saudi real estate sector,” said Saleh Waheed Al-Ghamdi, the company’s chief executive. “Our full integration with the Real Estate Registry allows us to deliver a transparent, secure, and fully regulated investment experience.”
The timing aligns with broader momentum across Saudi Arabia’s financial services landscape. Vision 2030’s economic diversification agenda has accelerated digital transformation in sectors from banking to insurance, and property investment has emerged as a logical next frontier. Fractional ownership models have gained traction globally—US real estate investment trusts pioneered the concept decades ago, whilst European platforms have more recently digitised access to commercial property. Yet applying those frameworks in the Gulf requires navigating different regulatory expectations, ownership traditions, and investor protection standards.
What makes the sandbox approach notable is its built-in caution. Ghanem will roll out the product in phases, each stage subject to regulatory oversight before expansion. That structure gives REGA the ability to monitor performance, assess risks, and adjust requirements without exposing the broader market to untested mechanisms. It’s a model the Kingdom has deployed across fintech initiatives, where controlled experimentation precedes full licensing.
For investors, the appeal is straightforward: access to assets that previously required substantial lump sums, delivered through a platform that handles registry filings, compliance checks, and ownership documentation automatically. For Ghanem, the sandbox offers a proving ground to refine operations under official scrutiny. For REGA, it’s a test case in whether innovation can coexist with the rigorous standards that underpin property market confidence.
The initiative stops short of detailing minimum investment thresholds, specific properties available for fractional purchase, or the revenue distribution mechanisms that will govern income-generating assets. Those particulars will likely emerge as the phased rollout progresses and the platform demonstrates operational stability. What’s clear now is the regulatory validation: REGA has deemed the model worthy of structured testing.
Industry observers note the move reflects growing pressure to modernise access to real estate investment, particularly among younger, digitally native Saudi investors who expect the same seamless experiences in property that they encounter in equity trading or fund subscriptions. Traditional property transactions—laden with paperwork, intermediaries, and capital requirements—increasingly feel misaligned with expectations shaped by app-based finance.
Whether the sandbox experiment translates into broader market availability remains uncertain. Regulatory sandboxes serve dual purposes: they can accelerate promising innovations toward full deployment, or they can expose fundamental flaws that prevent scaling. Ghanem’s challenge lies in proving that fractional ownership can deliver investor returns, maintain legal clarity, and operate at scale without compromising the registry integrity that REGA prioritises.
By the time the phased rollout concludes, the Kingdom’s property investment landscape may look markedly different—or the experiment may reveal complexities that temper ambitions. For now, the sandbox doors have opened, and the testing begins.