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New Chapter for Saudi Real Estate Market as Foreign Ownership Allowed

Residential and commercial properties in Riyadh – Asharq Al-Awsat
Residential and commercial properties in Riyadh – Asharq Al-Awsat
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New Chapter for Saudi Real Estate Market as Foreign Ownership Allowed

Residential and commercial properties in Riyadh – Asharq Al-Awsat
Residential and commercial properties in Riyadh – Asharq Al-Awsat

Saudi Arabia has approved a new law allowing non-Saudis to own real estate across the Kingdom, a move officials say will stimulate foreign investment, increase the quality and availability of housing stock, and help bring balance to the property market.

The decision, announced by the Council of Ministers on Tuesday, marks a shift in the structure of the real estate sector and aligns with the Kingdom’s broader strategy to diversify investment and improve urban development under its Vision 2030 reform agenda.

Municipal and Rural Affairs and Housing Minister Majid Al-Hogail said the new framework is expected to attract foreign developers and investors, increase competition in the domestic market, and ultimately help stabilize prices while improving housing options for Saudi citizens.

“A Strategic Restructuring”

“This step will encourage real estate supply and raise the quality of developments,” Al-Hogail said in a statement. “It supports the economic momentum and investment movement we are witnessing under Vision 2030.”

Khalid Al-Jasser, head of Amaken Group and a real estate specialist, said the updated system prioritizes Saudi citizens’ interests and will include mechanisms to regulate the market and achieve planned targets—chief among them, property market balance.

He added that the move would introduce global real estate standards to the Kingdom and draw capital to improve housing infrastructure, while creating jobs and lowering property prices.

“This is more than just an investment measure—it’s a structural shift,” Al-Jasser said.

Focus on Mega Projects and New Cities

Khaled Almobid, CEO of Menassat Realty Co., said the measure would allow foreign investors to buy properties in major development zones such as NEOM and the Red Sea Project—areas central to Crown Prince Mohammed bin Salman’s economic diversification efforts.

Almobid said the law is intended to protect Saudi homebuyers from being priced out of the market, while enabling high-value foreign investment that brings hard currency and supports large-scale development.

“The focus will be on strategic areas,” he said. “We expect foreign ownership will be restricted in districts designated for Saudi housing, with safeguards against speculation.”

He noted that details would become clearer once executive regulations are released.

Riyadh Housing Reforms

The foreign ownership law follows a series of housing reforms launched in March by Crown Prince Mohammed, aimed at curbing soaring land and rental prices in Riyadh.

As part of the measures, the government lifted bans on land sales, divisions, and permits, and instructed the Royal Commission for Riyadh City to develop 10,000 to 40,000 new residential plots annually over the next five years - priced at no more than 1,500 riyals ($400) per square meter - for eligible citizens.

Eligibility is limited to married Saudis or individuals over 25 years old with no prior property ownership.

The government also pledged to amend regulations governing undeveloped land fees and tenant-landlord relations within 60 to 90 days to boost supply and protect all parties’ rights.

The Real Estate General Authority and the Royal Commission were also tasked with monitoring Riyadh property prices and submitting regular reports.

 

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Business

IEA Hails Saudi Arabia’s ‘Rapid Response’ to Strait of Hormuz Crisis

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
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IEA Hails Saudi Arabia’s ‘Rapid Response’ to Strait of Hormuz Crisis

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)

Countries must resist the urge to hoard oil and fuel during the energy crisis triggered by the US-Israeli war on Iran, head of the International Energy Agency Fatih Birol warned on Sunday, with supplies expected to dwindle further if the Strait of Hormuz remains closed.

Birol praised Saudi Arabia for its rapid response to the crisis, after it rerouted over two-thirds of its oil exports through a pipeline to the Red Sea, bypassing the strait.

“I urge all countries not to impose bans or restrictions on exports,” Birol told the Financial Times. “It is the worst time when you look at the global oil markets. Their trade partners, their allies and their neighbors will suffer as a result.”

While he was careful not to name China directly, Birol’s comments appear to be aimed at Beijing.

China is the only major country to have banned the export of petrol, diesel and jet fuel in response to the five-week-old war, although India has imposed extra duties on exports.

Birol said “major countries in Asia who hold major refineries” should rethink any ban.

“If those countries continue to restrict or totally ban exports, the impact on the Asian markets will be dramatic.”

His plea for countries to avoid bans may also be pointed at the US, where rumors of a potential ban on refined fuel exports are circulating as gasoline prices pass $4 a gallon and California faces the threat of jet fuel shortages.

While the US supported a G7 call for no export bans, its energy secretary Chris Wright has so far only ruled out a ban on crude oil exports.

Birol said some countries are already hoarding energy, undermining the impact of the IEA’s move to release 400 million barrels of crude and fuel from emergency reserves in an effort to stabilize markets during the current conflict.

“Unfortunately, we see that some countries are adding to their existing stocks during our coordinated oil stock release,” he said. “They are stocking up. This is not helpful. In my view this is a time for all countries to prove they are a responsible member of the international community.”

Saudi response

Birol praised Saudi Arabia for its rapid response to the crisis, after it rerouted over two-thirds of its oil exports through a pipeline to the Red Sea, bypassing the strait.

He said he had been reassured by the “highest authorities in Saudi Arabia” that this key pipeline is “well protected.”

Birol, who as head of the IEA has been at the heart of discussions over how to respond to the crisis, warned that “in April, we will lose twice the amount of crude oil and [refined] products we lost in March” if the Hormuz Strait does not reopen to shipping.

In normal times, one-fifth of the world’s oil and liquefied natural gas flows through the waterway, which has been all but closed by Iranian threats to fire upon shipping.

“We are following all the key energy assets in the region on a daily or hourly basis,” he said, referring to oil and gas fields, pipelines, refineries and LNG terminals. “Currently there are 72 energy assets damaged and one-third are severely or very severely damaged,” he added.

Birol also said the current crisis would redraw the world’s energy system, as did previous crises in the 1970s and the one triggered by Russia’s full-scale invasion of Ukraine in 2022.

He predicted that the current crisis would trigger another nuclear revival, a boom in electric vehicles and a push for more renewables, as well as prompting some countries to burn more coal. But he said the gas industry, which had presented itself as a reliable supplier, would have to “work hard to regain its reputation” after two energy shocks in four years.

Business

JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
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JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah

The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.

The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.

In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.

It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.

Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.

In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.

The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.

The next meeting of the JMMC (66th) is scheduled for June 7, 2026.

Business

Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
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Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) edged up 0.03 percent to 11,272 points on Sunday, supported by insurance and basic materials stocks. Total traded value reached SAR 4.27 billion ($1.1 billion).

Shares of Petro Rabigh and The National Shipping Company of Saudi Arabia (Bahri) rose 1 percent and 1.5 percent to SAR 10.9 and SAR 32.6, respectively.

Saudi Arabian Amiantit Co. (Amiantit) led gainers, rising 10 percent to SAR 15.63. In the materials sector, SABIC and Maaden advanced 0.84 percent and 0.46 percent to SAR 60.05 and SAR 65.7, respectively.

In insurance, The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia climbed 1 percent and 2 percent to SAR 127.3 and SAR 174.1, respectively. Almarai rose 1.2 percent to SAR 44.48 after reporting its Q1 2029 results.

On the downside, Saudi Aramco—the index heavyweight—declined 0.22 percent to SAR 27.54.

ACWA Power fell about 1 percent to SAR 168 after announcing last week a temporary curtailment of power output at two of its solar projects. Emaar The Economic City (Emaar EC) was the biggest decliner, falling 7.6 percent to SAR 10.88.