Saudi Arabia’s real estate market is preparing to enter a new investment phase following the approval of the executive regulations governing property ownership by non-Saudis, a move that strengthens the sector’s appeal to foreign capital and opens the door to broader opportunities across residential, commercial, and hospitality projects.
The sector is expected to benefit from a wider investor base, positioning real estate as one of the key drivers of growth within the Kingdom’s expanding economy.
During its session on Tuesday, the Council of Ministers, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the executive regulations for non-Saudi property ownership and endorsed the geographical zones in which non-Saudis will be permitted to own real estate.
Minister of Municipalities and Housing Majed Al-Hogail said 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 sector is entering a new stage as the impact of the non-Saudi property ownership framework begins to take shape in market activity. Specialists expect the influx of new investments to encourage developers to expand supply and improve the quality of real estate products.
Experts believe the next phase will not be limited to growing demand. It is also expected to intensify competition among projects, enhancing market efficiency and contributing to a stronger balance between supply, demand, and prices.
Stimulating the Market
Khaled Al-Jasser, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that 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.
According to Al-Jasser, the measure is also expected to increase real estate supply, enhance competitiveness, improve market efficiency, and provide beneficiaries with a wider range of options and more balanced pricing.
The chairman of Amaken International Group added that the initiative enhances the attractiveness of the Saudi real estate market to foreign investors, particularly in light of the Kingdom’s evolving legislative environment and ongoing reforms. These factors support the inflow of foreign capital and reinforce the real estate sector’s position as one of the most promising sectors under the objectives of Vision 2030.
Attracting Capital
For his part, economic analyst Ahmed Al-Shahri told Asharq Al-Awsat that 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.
The significance of the move lies not only in allowing ownership but also in creating a more competitive market capable of attracting developers and investors seeking long-term opportunities in a Saudi economy currently undergoing rapid expansion.
Al-Shahri expects the impact to be reflected in stronger demand for high-quality real estate products, increased appeal of residential, commercial, and hospitality projects, and greater incentives for developers to bring additional supply to market in order to meet the needs of new categories of investors and residents in the Kingdom.
“This means the most significant impact may be seen in the expansion of the market’s overall size, rather than solely in higher prices,” he said.
Price Balance
He continued: “As for prices, the initial phase may support values in the most attractive locations due to the entry of new demand. However, over the medium term, increased supply and stronger competition among developers will serve as an important balancing factor, because a healthy real estate sector is not built on continuous price increases but on the market’s ability to maintain equilibrium between supply and demand.”
Al-Shahri explained that the move could shift the sector from a phase of “product scarcity and rising value” to one defined by “product quality and market competitiveness.” Projects distinguished by location, services, and design will become best positioned to attract investment, while lower-quality developments may face greater pressure to preserve their value.
The non-Saudi property ownership law entered into force on January 22, 2026. The framework consists of 15 articles governing property ownership procedures for foreign individuals, companies, and non-profit entities.
