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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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Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
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Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)

With the release of a special report by the Development Programme on the economic fallout of escalating tensions in the region, Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States said the region is facing an “accelerating economic shock” hitting energy markets, growth, and livelihoods.

Speaking to Asharq Al-Awsat, he warned nearly 4 million people could fall into poverty within a month, calling it an unprecedented indicator of the economic toll of war.

Losses, he said, could rise rapidly if fighting continues, alongside shifts in energy routes, supply chains, and development models.

Estimates based on simulations

Al Dardari said the shock has been sharp and sudden, with losses expanding rapidly over a short period. Current estimates remain based on simulation models, as there has not been enough time to measure real impacts precisely.

The methodology draws on models used in past crises, including Gaza and Lebanon, which later proved highly accurate. The report focuses on broad trends rather than precise figures, particularly in GDP, to track the direction of economic impact.

Losses mounting

The report outlines wide-ranging effects, including declining trade, disruptions in petroleum flows, a worsening investment climate, and growing pressure on public finances.

“After four weeks of war, the impact is very large,” Al Dardari said.

“The Strait of Hormuz is closed, oil exports have been severely affected, and we are moving toward the worst-case scenario.”

He said production inputs have been severely disrupted and infrastructure has been damaged, pushing expected losses closer to $194 billion than $120 billion.

The scenarios are based on one month of fighting. If the conflict continues even one more week, losses would not rise incrementally but multiply, he warned.

GDP losses are highest in Gulf economies due to the hit to oil and energy, while poverty is expected to surge most in the Levant, where rising energy costs quickly drive up food prices.

“The number of poor could increase by around 4 million in a single month,” he said, noting such a jump would normally take years.

Energy routes shifting

Countries are scrambling to contain the shock, repair damage, and secure alternative supply lines.

Saudi Arabia is relying more on pipelines to Yanbu on the Red Sea, while Iraq and Syria are holding serious talks to move crude and petroleum products overland.

“This is a shift toward building alternatives and more diversified, resilient supply chains,” Al Dardari said, adding that the UNDP is supporting efforts to strengthen regional connectivity and trade routes.

Syria’s corridor role

On proposals to bypass the Strait of Hormuz through Syria, Al Dardari said the country has historically served as a regional transit hub linking trade routes.

He pointed to Syria’s “Five Seas” strategy in 2007–2008, which aimed to connect the Caspian, Black, Red, and Mediterranean seas, and the Arabian Gulf through pipelines, rail, roads, and energy grids.

At the time, the plan was backed by a comprehensive development strategy and relatively mature institutions. Today, however, regulatory and legal frameworks for cross-border investment remain underdeveloped, despite ongoing efforts to improve them.

He said the UNDP is ready to support countries in building the technical and institutional capacity needed to pursue such projects.

Opportunity amid crisis

Despite the downturn, Al Dardari said Syria, Jordan, and Lebanon have an opportunity to form a quasi-regional bloc and revive their role as a bridge linking Gulf economies with Türkiye and Europe through alternative supply chains.

But he cautioned this would require more than infrastructure, including stronger institutions, financial systems, and coordination across sectors and borders, as well as “regulatory convergence.”

Rethinking development

The crisis is also forcing a reassessment of development models.

“If 90% of oil and gas exports depend on the Strait of Hormuz, why were alternatives not developed?” he said, noting tensions in the region are not new.

He called for diversification of economies and labor markets, and deeper regional and global integration. While existing models delivered low poverty and strong growth, they have shown vulnerability to shocks.

“We face a more complex reality, with more shocks likely. We need more flexible and effective tools,” he said, adding that current strategies remain valid but may need more efficient pathways.

Rewriting reconstruction

Al Dardari said recovery in Gaza, Syria, and Lebanon can no longer rely on large external funding flows, shifting the burden to governments already facing rising poverty.

He questioned continued reliance on Gulf funding and called for innovative, sustainable recovery models.

The UNDP’s approach focuses on agriculture, local value chains, and affordable housing, drawing on global experience.

He said small and medium-sized enterprises offer a “sustainable alternative” due to their resilience, while strengthening education and healthcare is key to building a new social contract and stabilizing institutions.

Business

Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)
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Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)

Euro zone inflation soared past the European Central Bank's 2% target this month due to surging oil and gas prices, heightening a policy dilemma as expensive energy drags growth and risks generating a self-reinforcing inflation spiral.

Oil prices have nearly doubled as a result of the Iran war and the ECB is now debating whether to raise interest rates to prevent this surge from becoming entrenched in the price of other goods and services, Reuters reported.

Overall inflation in the 21 countries sharing the euro currency jumped to 2.5% in March from 1.9% a month earlier, below expectations for 2.6% in a Reuters poll of economists, as energy costs rose 4.9%.

"The previously price-stable environment is saying goodbye" said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe. "What matters is that this inflationary dirt does not feed through into the core rate." A closely-watched figure on underlying inflation, which excludes volatile ⁠food and energy, ⁠meanwhile, fell to 2.3% from 2.4%, data from Eurostat, the EU's statistics agency showed on Tuesday.

Basic economic theory argues that central banks should look past one-off price shocks generated by supply disruptions, especially because monetary policy works with long lags.

But a quick rise in energy inflation can easily broaden out if companies start building this into selling prices and workers begin demanding higher wages for the loss of disposable income.

High energy prices should increasingly make other goods more expensive and push up core inflation, said Commerzbank's chief economist ⁠Joerg Kraemer, forecasting headline inflation will rise above 3% by May unless the war ends quickly. The public may also start doubting the ECB's resolve if it remains idle, firming the case for rate hikes even in the event of large but not so persistent inflation episodes, ECB President Christine Lagarde said last week.

Financial markets now see three interest rate hikes from the ECB this year, with the first in either April or June.

"The mounting inflation pressure suggests that the ECB will raise its key interest rates in April or, at the latest, in June," Kraemer said. While some policymakers, such as the influential Bundesbank head Joachim Nagel, said that a rate hike as soon as April was an option, others, including ECB board member Isabel Schnabel, have warned against hasty action.

But policymakers agree that the ECB must act if energy starts ⁠generating second round ⁠price pressures, especially since domestic inflation had been above 2% for years.

Services inflation, the single largest item in the consumer price basket and the key gauge for domestic inflation, fell to 3.2% in March from 3.4% a month earlier.

Part of the issue is that the ECB was late in recognizing the inflation problem in 2021/22, arguing for months that the surge was transitory and would pass. It only raised rates when price growth hit 8%, forcing the central bank into its steepest tightening cycle in its history.

But the bloc is now in a very different position, so comparisons with 2022 are not entirely valid.

Rates are already higher, budget policy is tighter, the labor market has been weakening for months and there is no pent-up demand created by pandemic-era lockdowns.

The ECB will next meet on April 30.

"We find it hard to see the ECB moving at the next meeting at the end of April," said Carsten Brzeski, global head of macro at ING. "Unless the ghosts of 2022 are really keeping policymakers awake at night."

Business

China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
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China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)

Beijing expressed "gratitude" on Tuesday as it said three Chinese ships had transited the crucial Strait of Hormuz, which Iran has all but closed during the war in the Middle East.

"Following coordination with relevant parties, three Chinese vessels recently transited the Strait of Hormuz; we express our gratitude to the relevant parties for the assistance provided," foreign ministry spokeswoman Mao Ning told a regular press conference.

Mao did not offer ‌details about the ‌Chinese ships.

Ship-tracking data showed two Chinese container ships sailed through the Strait of ⁠Hormuz on Monday ⁠on their second attempt to leave the Gulf after turning back on Friday.

The vessels sailed in close formation out of the strait and into open waters, data on the MarineTraffic platform showed.

"Both vessels successfully crossed on a second attempt today, marking the first container vessels to leave the Persian Gulf since the start of the conflict, excluding Iranian flag vessels," said Rebecca Gerdes, data analyst with Kpler, which owns MarineTraffic.

"Both vessels are steaming at an elevated speed toward the Gulf of Oman at the moment."

Officials from China's COSCO, the shipping group that operates ⁠the two vessels, did not respond to requests for comment. COSCO had said in a March 25 client advisory, that it had resumed bookings for general cargo containers for shipments from Asia to the Gulf including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait and Iraq.

Iran has launched attacks on Gulf shipping and threatened more, stranding hundreds of vessels and 20,000 seafarers inside the Gulf.