Saudi Arabia opens real estate market to foreign investors with new ownership rules

Saudi Arabia's real estate market is poised for a significant transformation following the approval of executive regulations governing property ownership by non-Saudis. This pivotal decision is set to enhance the sector's attractiveness to foreign capital, unlocking broader opportunities across residential, commercial, and hospitality projects.

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The Cabinet’s approval of the executive regulations and designated ownership zones marks an important step toward launching a new phase for the Saudi real estate market.

The Ministry of Municipalities and Housing announced that the Council of Ministers, chaired by King Salman bin Abdulaziz, approved the regulations and designated geographical zones for non-Saudi ownership. Minister Majed Al-Hogail described this as a crucial step toward launching a new phase for the Saudi real estate market, anticipating that the framework will shape market activity and encourage developers to expand supply and improve product quality.

Real estate specialists and economic analysts foresee a dynamic shift in the market. Khaled Al-Jasser, chairman of Amaken International Group, believes the move will significantly boost the Kingdom's real estate ecosystem by increasing investment activity, enhancing market momentum, and expanding participation. He expects greater supply, intensified competition, improved market efficiency, and more balanced pricing, ultimately making the Saudi market more appealing to foreign investors amidst ongoing reforms and Vision 2030 objectives.

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The move represents a significant boost for the Kingdom’s real estate ecosystem, strengthening investment activity and stimulating market momentum by broadening participation and expanding available opportunities.

Economic analyst Ahmed Al-Shahri highlighted the regulations as a turning point, transforming real estate from a locally traded asset into a more open investment sector capable of attracting global capital. This initiative is expected not only to allow ownership but also to foster a more competitive market environment.

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The approval of the executive regulations for non-Saudi property ownership marks a turning point for the market because it addresses a critical issue: transforming real estate from a locally traded asset into a more open investment sector capable of attracting capital.