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Five Benefits of the New Foreign Property Ownership Law in Saudi Arabia

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
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Five Benefits of the New Foreign Property Ownership Law in Saudi Arabia

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

A newly updated property ownership law approved by Saudi Arabia’s cabinet earlier this month is expected to deliver five major benefits to the Kingdom’s real estate sector, including attracting foreign capital and enhancing transparency, according to industry experts.

Set to take effect in January 2026, the law enables non-Saudis to own property under a regulated framework aimed at modernizing the sector and supporting the country's broader economic transformation goals under Vision 2030.

Real estate experts said the law will draw foreign investment through sovereign wealth funds and international developers, transfer global expertise in property management and development, expand the supply of residential and commercial units, unlock new financing channels for large-scale developments, and generate new job opportunities for Saudi citizens.

“This is a pivotal step toward creating a more transparent, professional, and investor-friendly real estate market,” said Khaled Al-Mobid, CEO of property firm Manassat.

“The new system regulates relationships between all market players, speeds up processes, protects rights, and raises the overall quality and diversity of real estate projects,” he told Asharq Al-Awsat.

He said the streamlined regulations are expected to make the Saudi property market more appealing to both local and international investors, particularly with improved governance and legal clarity. The law is also anticipated to support price stability by reducing speculation and ensuring more equitable property valuations.

With a more welcoming investment climate, Al-Mobid expects a wave of international developers to enter the market, especially in major cities and emerging economic zones.

“This framework reduces operational risks and facilitates licensing for major projects,” he said.

Ahmed Al-Faqih, a real estate consultant and appraiser, told Asharq Al-Awsat the reform marks a shift in Saudi Arabia’s investment landscape, offering promising returns to global funds and real estate entities.

He highlighted the law’s potential to attract capital from around the world while transferring expertise in property development, facility management, and project execution to the local market. “It will enrich the supply across all real estate segments, from residential to industrial and tourism-related projects,” Al-Faqih said.

One of the most notable features, he added, is the introduction of internationally recognized financial mechanisms such as profit-sharing structures to fund large-scale developments. These changes are also expected to create thousands of new jobs in the Kingdom’s growing real estate sector.

Al-Faqih pointed to the law’s removal of the residency requirement for foreign ownership as a key draw. “It adds much-needed flexibility and enhances the appeal of Saudi Arabia’s real estate market,” he said, predicting it will boost the sector’s contribution to non-oil GDP and ensure long-term sustainability.

According to the Real Estate General Authority (REGA), the new law will come into force 180 days after its publication in the official gazette. The executive regulations outlining implementation procedures and conditions will be issued within the same period.

Ownership will be permitted in specific areas of Riyadh and Jeddah under a structured geographic framework designed to protect market balance. However, property ownership in Makkah and Madinah will be restricted to Muslims under special conditions or regulated arrangements.

The system permits full ownership, as well as other real rights, such as usufruct and easements, provided the property is recorded in the national real estate registry and all ownership data is fully disclosed as stipulated in the executive regulations.

The Kingdom’s real estate sector has witnessed robust growth in recent years, contributing about 14% to GDP by the end of 2024, according to REGA CEO, Abdullah Al-Hammad.

The updated law, experts say, is expected to further strengthen that trajectory by fostering a more competitive, transparent, and globally integrated market.

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Business

Saudi Finance Minister at Davos: Fiscal Discipline Drove Our Credit Upgrades

Finance Minister Mohammed Al-Jadaan and senior Saudi officials at a panel at the World Economic Forum in Davos on Tuesday.
Finance Minister Mohammed Al-Jadaan and senior Saudi officials at a panel at the World Economic Forum in Davos on Tuesday.
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Saudi Finance Minister at Davos: Fiscal Discipline Drove Our Credit Upgrades

Finance Minister Mohammed Al-Jadaan and senior Saudi officials at a panel at the World Economic Forum in Davos on Tuesday.
Finance Minister Mohammed Al-Jadaan and senior Saudi officials at a panel at the World Economic Forum in Davos on Tuesday.

Saudi Finance Minister Mohammed Al-Jadaan said on Tuesday strict fiscal discipline lay behind the Kingdom’s string of credit rating upgrades, arguing that Saudi Arabia has built a buffer against oil price shocks after restructuring its economy to lift the non-oil sector’s share to 56%.

Speaking to CNBC on the sidelines of the World Economic Forum in Davos, Al-Jadaan said dialogue, not confrontation, remains the only viable path to rebalancing global geoeconomic power.

He stressed that the Kingdom’s receipt of three credit rating upgrades last year was no coincidence, describing it as an international vote of confidence in the government’s fiscal discipline.

Global rating agencies and the International Monetary Fund are now clearly seeing the results of structural transformation, he remarked, noting that the Saudi budget is no longer hostage to energy price volatility, but instead rests on strong institutional foundations.

He also reaffirmed that Saudi-US relations remain “strategic” and ongoing at all levels of leadership and the ministerial level, adding that a previously cited figure of one trillion dollars in Saudi investment in the United States is not only realistic but could be exceeded.

The US market represents a core growth area, offering the Kingdom financial returns as well as knowledge and expertise transfers that serve national interests, the minister added.

In the face of the threat of global tariff hikes, Al-Jadaan called for resolving trade disputes through multilateral institutions, stressing that companies need certainty and that constructive dialogue with Washington and other strategic partners is essential to safeguarding global trade stability.

Investment discipline

Responding to questions about budget deficits alongside massive investments, Al-Jadaan outlined a different fiscal philosophy, describing the deficit as a deliberate policy design rather than a result of financial strain.

The Kingdom is borrowing to finance tomorrow’s growth, not today’s operating expenses, he said.

He pointed to last year’s three credit upgrades as evidence of the policy’s success, saying fiscal space is being managed with high discipline to channel resources toward jobs and gross domestic product, particularly as the non-oil economy now accounts for about 56% of total output.

Breaking the historical link

Asked about the US administration’s preference for oil prices around $50 a barrel, Al-Jadaan said Saudi Arabia has succeeded over the past decade in decoupling its economy from oil volatility, with non-oil revenues now making up 30% of total revenues.

He warned that excessively low prices could discourage global investment and trigger sharp price spikes in the future due to supply shortages, stressing that Saudi Arabia’s priority is market stability that balances the interests of both investors and consumers.

On monetary policy, Al-Jadaan underlined the Kingdom’s firm commitment to the riyal’s peg to the US dollar, calling it a cornerstone of stability and investor expectations.

He downplayed the impact of ongoing investigations into the US Federal Reserve on the Saudi economy, saying the Kingdom has policy tools beyond monetary policy that have kept inflation at very safe levels.

He added that markets determine long-term borrowing costs based on supply and demand, rather than short-term Federal Reserve decisions, helping reduce currency volatility risks and boost investor confidence.

Al-Jadaan announced a landmark step, starting on February 1, when the stock and real estate markets will be further opened to foreign investors.

The rise in institutional investor ownership in 2025 is a vote of confidence in the Saudi market's value, despite challenges, he stressed.

He warned, however, that the greatest risk facing any economy is complacency, stressing that Saudi Arabia is working institutionally to ensure sustainable results and that reforms no longer depend on daily interventions but have become a default approach whose benefits are felt by citizens and investors alike.

Business

Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Real estate prices in Saudi Arabia’s capital fell 3% in the final quarter of last year, reversing a 1% rise in the previous quarter, in a shift that highlights the on-the-ground impact of policy moves ordered by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, to rein in soaring property costs across the Kingdom, particularly in Riyadh.

According to an index issued by the General Authority for Statistics on Tuesday, the real estate price index in Saudi Arabia fell 0.7% in the fourth quarter of last year compared with the same period of 2024.

The decline was driven mainly by weaker performance in the residential sector, which carries the most significant weight in the index, as its annual rate of change fell 2.2%.

The commercial sector continued to see a slight slowdown in growth momentum, while maintaining positive annual growth of 3.6%.

A real balance

Real estate specialists told Asharq Al-Awsat that the Crown Prince’s directives have become evident on the ground after property prices in Riyadh surged to unprecedented levels, prompting government intervention to curb the increases and enable citizens to own their first homes without excessive financial burdens.

Real estate analyst Khaled Al-Mobid said the 0.7 % decline in the real estate price index in the fourth quarter of 2025 reflects the market’s entry into a phase of real balance after years of rapid price increases, describing it as a healthy indicator that supports, rather than weakens, market sustainability.

“What we are witnessing today is not a loss in value, but a logical price correction, particularly in the residential sector, due to increased supply, improved regulation, and greater awareness among market participants, whether buyers or investors,” Al-Mobid told Asharq Al-Awsat.

He added that this balance creates better opportunities for end users, redirects investment toward appropriate products at fair prices, and curbs short-term speculation, serving the real estate economy over the medium and long term.

Housing stability

Real estate specialist Ahmed Omar Basudan told Asharq Al-Awsat that the sector has seen declines in many regions of the Kingdom, as buyers await the effects of government decisions issued under the Crown Prince’s direction.

He cited recent measures, including the announcement of the names of beneficiaries of subsidized land grants in northern Riyadh, located in some of the area’s best neighborhoods.

Basudan said the decision to fix residential rental prices in Riyadh for five years also contributed to the decline in the capital’s real estate market, as tenants are experiencing a period of housing stability, reducing demand for purchases at this stage.

He added that recent amendments to fees on undeveloped land and vacant properties, which have been implemented and are now being collected, also played a role, prompting landowners to move quickly to sell some plots at competitive prices to avoid bearing those fees.

Data from the General Authority for Statistics showed that residential real estate prices fell in the fourth quarter of last year compared with the same quarter of 2024, with the sector declining 2.2%. The drop was driven by a 2.4% fall in residential land prices, a 2.5% decline in apartment prices, a 1.3% decrease in villa prices, and a 0.2% drop in residential floor prices.

Quarterly comparison

The real estate price index fell 0.4% in the fourth quarter of last year, at a slower pace than in the third quarter.

The index was affected by a 0.4% decline in the residential sector, driven by a 0.7% drop in residential land prices, a 0.4% fall in apartment prices, and a 0.2% decrease in residential floor prices, while villa prices rose 0.8%.

At the regional level, the annual real estate price index fell 0.7% nationwide in the fourth quarter of last year, with Riyadh recording a 3% decline, compared with a 1% increase in the third quarter.

The Eastern Province posted the highest real estate price increase at 4%, followed by Makkah at 2.5%, Tabuk and Jazan at 1.1% each, and Al-Jawf at 0.4%.

By contrast, Hail, the Northern Borders region, and Madinah recorded the steepest declines, at 8.9%, 6.8%, and 6.1%, respectively.

Business

Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
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Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held on Tuesday a series of high-level meetings with government officials and global business leaders on the sidelines of the Kingdom's participation in the 2026 World Economic Forum in Davos.

As part of the Saudi delegation, Alkhorayef participated in a meeting with Swiss President Guy Parmelin. The meeting reviewed the robust strategic partnership between their nations and explored avenues to deepen cooperation in the industrial and mining sectors, aiming to expand bilateral ties to serve mutual interests.

Alkhorayef met with CEO of BlackRock Larry Fink, and President and CEO of the World Economic Forum Børge Brende. Talks focused on boosting the partnership between the Kingdom and the forum, exploring new cooperation in advanced manufacturing and critical minerals, and strengthening joint efforts to fortify industrial and mining supply chains.

In a series of bilateral meetings, Alkhorayef met with leaders of major global firms, including CEO of Capgemini Aiman Ezzat, Senior Partner at Bain & Company Dr. Jörg Gnamm, and CEO of Copa-Data Stefan Reuther. The meetings focused on unlocking opportunities for collaboration in advanced manufacturing, digital solutions, industrial automation, and smart systems. The officials emphasized leveraging global consulting expertise to boost factory efficiency, accelerate the Kingdom's industrial transformation, and bolster the competitiveness of its industrial and mining sectors.