Foreigner Real Estate Ownership Changes Given Cabinet Approval, Enhancing Saudi Competitiveness

RIYADH: New regulations governing non-Saudi ownership of real estate will boost business expansion and competitiveness of the Kingdom’s investment environment, ministers have said.

The changes, including the geographical zones for non-Saudi real estate ownership, were approved by the Cabinet — chaired by Custodian of the Two Holy Mosques King Salman bin Abdulaziz — on June 23.

The move comes as Saudi Arabia’s real estate sector is experiencing rapid growth, underpinned by the Kingdom’s Vision 2030 economic transformation agenda. The market, valued at around $77 billion in 2025, is projected to nearly double to $141.6 billion by 2034, growing at a compound annual growth rate of 6.73 percent, according to IMARC Group.

Commerce Minister Majid Al-Qasabi was among the first to react, and in a post on X said the issuance of the regulations would serve as “a strong catalyst for companies to expand their businesses and enhance competitiveness,” as well as a key enabler for attracting global talent.

Investment Minister Fahd bin Abduljalil Al-Seif also praised the move, saying the Cabinet’s approval would contribute to the competitiveness of Saudi Arabia’s investment environment and strengthen the presence of foreign companies in the Kingdom.

He added that the regulations would provide foreign firms with a clearer framework for establishing operations, expanding their activities, and making long-term investments in the Saudi market.

Al-Seif added that approving the geographical zones and executive regulations represented a significant step toward greater regulatory certainty for investors by defining ownership boundaries, property rights, obligations, and pathways for use.

This, he said, would allow foreign companies to plan their investments, headquarters, and operational projects along a structured and transparent path.

The minister also highlighted the broader economic impact, saying that enabling foreign companies to own property within defined zones would support Saudi Arabia’s attractiveness as a regional and global business hub, and open wider opportunities across sectors, including real estate development, infrastructure, services, and technology, as well as supply chains, and regional headquarters.

In an interview with Arab News, Oliver Morgan, partner and real estate leader at Deloitte Middle East, said that the new foreign ownership regulations in designated zones across Riyadh, Jeddah, Makkah, and Madinah diversify the demand pool across Saudi Arabia’s real estate market. 

“The new regulations are anticipated to boost residential demand while maintaining appropriate regulatory controls. This growth is underpinned by a strong pipeline of projects to 2030 with an estimated delivery of 250,000 to 300,000 residential units expected to be delivered across the Kingdom based on current development pipelines,” he added.

The General Real Estate Authority outlined the geographical zones where non-Saudi ownership will be permitted. In Makkah, these include Abraj Makkah, Al-Manar, Burj Ajyad, and King Salman Gate, as well as Tilal Village, Jabal Omar, and Dhakhir Makkah. Dahiyat Sumou, Masar, and Makkah Zones 1 and 2 are also included.

In Madinah, the approved zones cover Al-Ghurra, Madinah Zones 1 and 2, Al-Mahwa, and Darat Al-Hijra, as well as Downtown Madinah, Diyar Al-Maqar, and Ruaa Al-Madinah. The Knowledge Economic City and Mishraf are also included.

“Opportunities in the holy cities of Makkah and Madinah are expected to be particularly appealing to the global Muslim community, driving demand for quality residential assets in prime locations,” Morgan said.

In Riyadh, ownership will be permitted in multiple areas, including Qiddiya, New Murabba, the Sports Boulevard and Arts District. Also, Diriyah Gate, King Salman Park, and Sidra will be included alongside the King Abdullah Financial District, King Salman International Airport, and the Transit-Oriented Development site.

The Deloitte partner noted that fundamentals for new projects remain critical, saying: “Good transport links, well-planned and managed communities, robust infrastructure, and high-quality development are essential to attract and sustain investment.”

Jeddah’s approved zones include the city center and development zones 1 through 55 across the governorate. In AlUla, zones 1 through 17 are included.

Manar Mahmassani, co-founder and co-CEO of Stake properties, told Arab News that foreigners now know exactly where they can buy, saying: “Those zones in Riyadh, Jeddah, and AlUla, are the addresses serious investors already have on their radar, with solid long-term fundamentals, but different strategies.”

Mahmassani added that these zones create concentrated demand, so prices in these areas will move. “Early movers have a real window, particularly if they can take advantage of lower entry points from regional tensions.”

The regulations also cover a geographical zone for giga and mega-projects across the Kingdom, encompassing Neom, Amaala, and the Red Sea project, as well as special economic zones including Jazan, Ras Al-Khair, and King Abdullah Economic City.

Morgan concluded by emphasizing that the benefits of ownership liberalization have been demonstrated globally, with countries such as the UAE, Malaysia and Turkey having followed a similar path. 

“This is expected to enhance Saudi Arabia’s competitiveness as a destination for real estate investment capital by combining economic scale with cultural significance,” he said.

Stake Properties’ Mahmassani added: “This is a rare opportunity: a growing real estate market with genuine fundamentals behind it.”