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Law on Real Estate Ownership and Investment by Non-Saudis Amended to Boost Competitiveness

Saudi Arabia amends law to enable non-Saudis own and invest in real estate (Asharq Al-Awsat)
Saudi Arabia amends law to enable non-Saudis own and invest in real estate (Asharq Al-Awsat)
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Law on Real Estate Ownership and Investment by Non-Saudis Amended to Boost Competitiveness

Saudi Arabia amends law to enable non-Saudis own and invest in real estate (Asharq Al-Awsat)
Saudi Arabia amends law to enable non-Saudis own and invest in real estate (Asharq Al-Awsat)

Saudi Arabia amended the Law on Real Estate Ownership and Investment by non-Saudis to increase and improve the efficiency and effectiveness of the procedures and controls related to the ownership or use of real estate by foreigners, who enjoy natural and legal capacity in cities and economic zones in the Kingdom targeted for development, including the cities of Makkah and Madinah.

The proposed amendment enhances the competitiveness and marketing capacity of real estate in the Kingdom and stimulates growth in other economic sectors.

Asharq Al-Awsat reviewed a copy of the new law which stated that the prime minister would issue the executive regulations of the amended law.

A provision in the amended law permits international and regional organizations to own their official headquarters, which is within the limits of the agreements governing them.

The ownerships would be granted on obtaining a license from the Minister of Foreign Affairs, as specified in the amended law.

The amended law stipulates that it is not permissible, by any means other than inheritance, to acquire the right to own, use or have an easement over real estate located within the Two Holy Mosques for persons prohibited from entering there.

Notary publics or any competent authority are prohibited from documenting any behavior that does not comply with the provisions of the law, provided that the new law replaces the system of non-Saudi ownership of the real estate in the Kingdom issued by Royal Decree (M/22).

Last year, the Ministry of Investment called on the public to review the real estate ownership law through the Istitlaa platform to regulate and protect real estate ownership rights and set general principles for the protection and regulation of real estate in the Kingdom.

The draft law identified eight real estate transactions: barter sale, lending, leasing, mortgage, endowment, gift, and reconciliation.

The draft system sets eight reasons for a natural or legal person to own real estate, indicating that real estate or unit ownership is transferred for one of these reasons, and the transfer is invalid until after it is documented in the real estate registry, following the provisions of its regulations.

The Ministry of Investment recently confirmed an increase in the economic growth, noting that real GDP grew by seven percent during Q3 and 6.7 percent in Q4 in 2021, driven by the change in the oil and non-oil sector, recording a growth of 10.9 percent and 5.1 percent, respectively.

Foreign projects achieved record numbers, bringing the number of licenses for new projects to 3,386 permits, increasing 347.9 percent compared to the second half of 2020.

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Saudi Arabia Advances Climate Action at 2024 SGI Forum with $60 Million in New Funding

A night view of the Saudi capital, Riyadh. (SPA)
A night view of the Saudi capital, Riyadh. (SPA)
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Saudi Arabia Advances Climate Action at 2024 SGI Forum with $60 Million in New Funding

A night view of the Saudi capital, Riyadh. (SPA)
A night view of the Saudi capital, Riyadh. (SPA)

The fourth edition of the Saudi Green Initiative (SGI) Forum kicked off on Tuesday, coinciding with the 16th session of the United Nations Convention to Combat Desertification (UNCCD COP16) in Riyadh.

Held under the theme "Action is in our Nature," the first day of the 2024 SGI Forum witnessed the announcement of five new initiatives, valued at $60 million (SAR225 million), reinforcing Saudi Arabia's leading role in climate and environment efforts.

With total investment exceeding $188 billion (SAR705 billion), the 86 initiatives activated as part of SGI are delivering tangible progress towards the aims of all three Rio Conventions. The Saudi Green Initiative is a key vehicle to deliver Saudi Arabia's goal to create a greener future for all by reducing emissions, combating desertification and safeguarding natural ecosystems.

The Kingdom is advancing towards net zero by 2060, driven by the Circular Carbon Economy approach. Central to this effort is the Saudi Green Initiative's target to reduce emissions by 278 million tons annually and optimize the domestic energy mix to achieve nearly 50% of electricity generation capacity from renewable sources by 2030.

In line with these goals, Saudi Arabia plans to increase renewable energy capacity to 130 gigawatts (GW) by 2030. Of this capacity, 6.2 GW is already connected to the grid, and 20 GW of projects were launched this year. Currently, 44.2 GW are under development—enough to supply more than 7 million homes with clean electricity.

To achieve the goal of displacing over one million barrels of liquid fuel daily, highly efficient gas-fired power stations with carbon capture readiness will provide a total capacity of 42 GW of electricity generation capacity. Four stations with a capacity of 5.6 GW are already operational, and 9 GW are under construction across five stations. An additional 21 GW has been awarded for construction, and 6 GW is to be tendered in 2025.

Construction is underway on one of the world's largest carbon capture, transport, and storage centers in Jubail, targeting the capture of 9 million tons of carbon dioxide annually by 2027. Additionally, the Saudi Energy Efficiency Program continues to achieve substantial energy savings and contribute to sustainable economic development, reducing approximately 539,000 barrels of oil equivalent daily by the end of 2023—a 9.5% increase compared to 2022.

Moreover, Saudi Arabia has planted over 100 million trees and shrubs since the launch of SGI in 2021, alongside dispersing millions of seeds to expand green coverage further and combat sand encroachment.

The Kingdom has also rehabilitated over 118,000 hectares of degraded land—an area larger than 165,000 FIFA-regulation-sized football fields—advancing the interim goal of rehabilitating 8 million hectares by 2030.

Five new initiatives, led by Ma'aden, Morooj Foundation in partnership with the private sector, and the Tanmiah Food Company, represent a $60 million (SAR225 million) investment to accelerate afforestation efforts. These initiatives aim to plant millions of trees and mangroves, scatter 300 million seeds, rehabilitate degraded land, reduce air pollution, and enhance biodiversity across the Kingdom.

Through its afforestation efforts, Saudi Arabia aims to safeguard current and future generations by providing essential protection against extreme heat. These efforts mark a pivotal step toward the country's long-term goal of growing 10 billion trees, enhancing resilience to desertification and improving the quality of life across the Kingdom.

To date, 18.1% of Saudi Arabia's land and 6.49% of its marine environments—spanning nearly 400,000 km²—are under protection, advancing the Kingdom's target of safeguarding 30% of its land and marine areas by 2030.

Saudi Arabia's conservation efforts also reached a series of historic milestones. Since the launch of the Saudi Green Initiative in 2021, over 7,000 endangered species, including the Arabian oryx, Arabian and sand gazelles, and Nubian ibex, have been rewilded in the Kingdom's nature reserves.

In 2024, four cheetah cubs were born—the first in Saudi Arabia in over 40 years—marking a significant achievement under the National Cheetah Conservation Strategy. Additionally, over 110 endangered red-necked ostrich chicks hatched in wildlife breeding centers in 2024, signaling the success of the species' reintroduction, which went extinct in the wild 100 years ago.

The Ibex Reserve and King Salman Royal Nature Reserve were also added to the International Union for Conservation of Nature (IUCN) Green List, further recognizing Saudi Arabia's progress in implementing effective management and conservation programs.