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Property management and facility management: what separates them

Saudi brokerage law treats property management (the financial and administrative side of a property) and facility management (its technical side) as two separate regulated activities. Each needs its own licence from the Real Estate General Authority and may be carried out only by a licensed firm.

Real Estate General Authority · Last reviewed: Oct 31, 2026

Who it applies to

Owners choosing who will run their property, and providers deciding which activity they offer and which eligibility document fits it. On the platform it relates to how service families are classified and which eligibility document each one asks for, without applying a single licence to every service.

What the source says

The first article of the Real Estate Brokerage Law defines property management as taking over the financial and administrative affairs of a property on behalf of its owner or the holder of its usufruct. Facility management is defined as taking over the technical affairs of the property on the owner's or usufruct holder's behalf, including internal networks such as water, electricity and drainage.

The law counts both as real estate services, and its fourth article says they may be practised only under a licence from the Authority. The implementing regulation adds, in its second article, that property management, facility management and auctions may be run only by licensed firms, not by individuals acting in a personal capacity. Each activity has its own licence, so a property management licence does not stand in for a facility management one.

When it matters to you

If you are an owner, the distinction helps you decide what you actually need. Following up rents, collections, contracts and correspondence is financial and administrative work, while running and maintaining networks and equipment is technical work. It also tells you what to ask about before you sign: which licence does this firm hold?

If you are a service provider, work out which activity you are offering and prepare the document that matches it, since each service family has its own eligibility paper. This article explains the two definitions only. It does not say that every maintenance job requires a licence of this kind.

What this article does not cover

The text we read does not settle where technical affairs end when maintenance overlaps with operations; that depends on the scope of the service contract and the provider's licence. This is general information from a published source, not legal advice. Official decisions and procedures take place on the authority's own platform.

Key points

  • Property management covers the financial and administrative affairs of a property on behalf of its owner or usufruct holder.
  • Facility management covers the property's technical affairs, including internal water, electricity and drainage networks.
  • Both are real estate services that require a licence from the Real Estate General Authority.
  • The implementing regulation limits them to licensed firms, not individuals.
  • Each activity has its own licence; one does not replace the other.

Related provisions

  • نظام الوساطة العقارية، المادة 1 (التعريفات) والمادة 4/1 (الترخيص)
  • اللائحة التنفيذية لنظام الوساطة العقارية، المادة 2 فقرة 4