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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

World Bank, IMF Back Changes to Debt Framework for Poor Countries

01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
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World Bank, IMF Back Changes to Debt Framework for Poor Countries

01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)

The World Bank and International Monetary Fund said on Monday that both their executive boards had approved proposed reforms of their joint framework for evaluating the debt of low-income countries to reflect a more complex and riskier environment.

A joint review, the first since 2017, recommended changes in several areas, including beefing up the analysis of domestic debt held by poor countries, and broadening consideration of long-term development challenges, including climate change. It stopped short of calling for a wholesale redesign.

The reforms are intended to refine how the IMF and World Bank measure a country's debt-carrying capacity and provide new tools to better differentiate between countries facing some risk of debt stress and those whose debt is deemed unsustainable.

The World Bank and IMF said they would also work ‌to enhance the tools ‌and stress tests used to ensure the consistency and accuracy of forecasts, while ‌encouraging ⁠countries to improve reporting ⁠and transparency of their debt data. They left the discount rate used in making assessments unchanged at 5%.

"Overall, our goal is a very practical one. It is to help countries identify vulnerabilities earlier and also more precisely, so that they can make better-informed financing choices and better-informed policy choices," said Allison Holland, who worked on the new debt sustainability framework and now serves as deputy director in the IMF's African Department.

Holland said recent shocks had reversed improvements in the debt landscape seen since 2021, taking the number of countries at high risk or already in debt distress back ⁠to pre-pandemic levels.

"Around 14% of low-income countries are in debt distress, and another 33% ‌are at high risk. About 23% of emerging market countries are at ‌high risk of overall sovereign stress," she said.

The revised framework could help inform a debt restructuring requested earlier this month ‌by Senegal in exchange for a $2.2 billion IMF bailout two years after a hidden debt scandal that pushed ‌it into crisis. The IMF has said it will assess Senegal's debt sustainability using the current framework, "while taking into account the implications of the transition" to the new one.

The IMF has not provided details on how the revised framework — with consideration of domestic debt — could affect Senegal's debt restructuring.

TAKING EFFECT IN SECOND HALF OF 2027

The changes, which will become operational in the second half ‌of 2027, should help countries better assess how much they can invest in needed development and climate adaptation measures while containing debt vulnerabilities over the long ⁠term, the IMF and World ⁠Bank said.

A review completed in July confirmed that the debt sustainability framework, first introduced in 2005, had worked well to identify debt distress episodes ahead of time and help countries make informed borrowing and lending decisions.

But it recommended changes to account for higher debt levels in many low-income countries and a shift in financing sources to include more domestic and external borrowing on commercial terms. The IMF and World Bank have a separate framework for assessing the debt sustainability of advanced and emerging market economies that will be reviewed in coming years.

The IMF said near- and medium-term economic projections that feed into the analyses had generally been reliable, but longer-term forecasts of exports and revenues had shown some "optimism bias" and left data gaps, including for state-owned enterprises.

The new framework introduces a long-term module to add granularity to risk assessments, as well as specific thresholds for overall public debt stress.

But IMF board members agreed to temporarily hold off publishing the models used to assess unsustainable debt to give time to adjust to the new methodologies. Stand-alone staff notes would be used to share data with the board for now, it said.

Business

'AlUla Peregrina': From Fields to Global Markets

A Saudi woman works on products derived from the Peregrina tree in AlUla.
A Saudi woman works on products derived from the Peregrina tree in AlUla.
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'AlUla Peregrina': From Fields to Global Markets

A Saudi woman works on products derived from the Peregrina tree in AlUla.
A Saudi woman works on products derived from the Peregrina tree in AlUla.

In AlUla, where the Peregrina tree has been part of the local environment for generations, the tree is taking a new path from fields to laboratories and global markets. Rather than simply marketing raw materials, AlUla Peregrina is seeking to develop oils, extracts, and natural ingredients for applications in beauty and personal care, adding value to a local resource before it reaches overseas markets.

AlUla Peregrina was established in 2021 by the Royal Commission for AlUla, with the aim of developing economic uses for the tree and its extracts. The company is now expanding its applications in skincare, haircare, and wellness products, while also developing its presence in international markets.

The strategy comes as efforts to increase the added value of local resources and expand non-oil exports gain importance. The company is betting that developing and manufacturing ingredients within Saudi Arabia can generate greater economic returns than exporting raw materials, while creating opportunities for products that carry Saudi knowledge and technology into international markets.

In an exclusive interview with Asharq Al-Awsat, Eng. Abobakar Alanazi, Chairman of the Board of AlUla Peregrina, said the company's ambition is to establish AlUla Peregrina as a leading Saudi platform for high-quality active natural ingredients, expanding from AlUla into regional and global markets, with a focus on skincare, haircare, and personal care.

Added Value

According to Alanazi, the company is gradually building a presence in international markets, benefiting from growing demand for natural ingredients with traceable origins and scientific evidence, alongside increasing interest in responsible supply chains.

He said the goal extends beyond exporting a Saudi product to developing ingredients and products based on local natural resources and combining scientific research, development, and manufacturing within Saudi Arabia, thereby increasing the product's added value before it reaches overseas markets.

Development efforts focus on the Arabian Peregrina tree, Moringa peregrina, and its natural compounds, including ceramides, plant exosomes, bioactive peptides, and antioxidants. Alanazi said the company has developed a range of oils and extracts that can be used in various skincare applications.

The development of these products is based on scientific research, laboratory testing, and clinical evaluations to verify their effectiveness before moving into commercial applications. Alanazi said these efforts have resulted in four registered patents, reflecting part of the company's research and development work.

Hospitality Sector

In the hospitality sector, Alanazi said the company is developing customized formulations and solutions for hotels and spas, inspired by Arab traditions of personal care but presented in contemporary formulations. These solutions include formulations and fragrances that can be tailored to reflect the identity of each establishment rather than offering a standardized product.

He explained that product development begins by identifying the needs of the market and partners, followed by scientific and technical evaluation before arriving at the final formulation.

On sustainability, he said responsible practices form part of the company's business model and supply chain, from cultivation and harvesting in cooperation with local farmers to the processing and development of ingredients in AlUla. The company is focusing on tracing raw materials and identifying their sources and journey throughout the production process, alongside responsible sourcing practices.

He noted that the supply chain has undergone verification by the Union for Ethical BioTrade (UEBT) in relation to responsible sourcing, in line with relevant international standards. He said developing processing and production operations within Saudi Arabia contributes to increasing local added value and supports the emergence of an integrated economic value chain around the activity in the region.

The company is also working to strengthen the participation of local farmers and suppliers, transfer knowledge, and develop the capabilities needed to support the growth of the natural ingredients sector in Saudi Arabia.

Economic Diversification

Alanazi said AlUla Peregrina's business model aligns with several objectives of Saudi Vision 2030, particularly economic diversification, increasing local content, and developing value-added industries, while also benefiting from growth in the tourism and hospitality sectors.

“We are transforming a natural resource from AlUla into ingredients and products that are developed and manufactured locally, creating economic value beyond the sale of raw materials,” he said.

He added that the growth of tourism and hospitality in Saudi Arabia is creating opportunities to develop Saudi solutions for hotels, resorts, and the wellness sector that are connected to the identity of the place and the visitor experience.

He pointed to an opportunity to develop a specialized sector for natural ingredients and their applications in personal care and beauty that could expand beyond the domestic market, bringing together natural resources, scientific research, manufacturing, and services linked to tourism and hospitality.

International Expansion

The Chairman of the Board said exports are a key pillar of the company's growth strategy, amid growing global demand for natural ingredients with traceable origins and scientific evidence supporting their use.

“What distinguishes our model is that the added value is created within Saudi Arabia, starting with the natural resource and research and development, through processing and manufacturing, and ultimately to the finished product or ingredient tailored for overseas markets,” he said.

He explained that the company is not simply seeking to export raw materials, but to develop specialized, higher-value products and ingredients.

Alanazi revealed that the company is working to expand its commercial relationships and presence in international markets through trade fairs and specialized platforms, as well as by building partnerships with global companies and brands. He said international expansion could support the growth of Saudi non-oil exports while opening new markets for products and ingredients developed locally.

The long-term goal, he added, is for products developed in AlUla to reach global markets under the “Made in Saudi” brand, reflecting not only their country of origin but also the development, knowledge, and manufacturing added to the products locally.

Business

Saudi Crown Prince Launches CEER's Flagship Vehicles

Saudi Crown Prince Mohammed bin Salman (SPA)
Saudi Crown Prince Mohammed bin Salman (SPA)
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Saudi Crown Prince Launches CEER's Flagship Vehicles

Saudi Crown Prince Mohammed bin Salman (SPA)
Saudi Crown Prince Mohammed bin Salman (SPA)

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince, Prime Minister and Chairman of the Board of Directors of the Public Investment Fund (PIF), has launched EXOBOT, the flagship electric vehicles from CEER, Saudi Arabia's national automotive company.

 

This national milestone reflects Saudi Arabia's strategic direction toward developing an advanced industrial sector aligned with the objectives of Saudi Vision 2030 and further strengthening Saudi Arabia’s position in the global automotive industry, SPA reported.

Commenting on this occasion, the Crown Prince said: "The launch of CEER's first vehicles represents another step forward in Saudi Arabia's progression to build a sustainable and prosperous industrial ecosystem. It further enables the automotive sector as a key driver of economic growth, through attracting investments, empowering national talent, and expanding the private sector's role to further position Saudi Arabia to become a leading regional and global hub for this industry."

The EXOBOT sedan and SUV vehicles represent part of a planned portfolio of seven models that will be launched over the next five years, including midsize and compact vehicles with various propulsion options to serve different customer needs.

 

These vehicles will be manufactured at CEER Manufacturing Complex (CMC), the largest automotive production facility in the Middle East and one of the most technologically advanced in the world.

Additionally, the EXOBOT sedan and SUV feature a distinctive design inspired by Saudi Arabia's landscape, rooted in its culture, and reflective of its vision. Designed and engineered locally, the vehicles have been developed according to the highest global standards, further strengthening Saudi Arabia's position as a rising force in the global automotive industry.

By 2034, CEER is projected to contribute over SAR30 billion ($8 billion) to Saudi Arabia's GDP, over SAR80 billion ($21 billion) to trade balance improvement, and create quality direct and indirect jobs.

The announcement aligns with PIF's efforts to develop an integrated and competitive local automotive ecosystem, as part of PIF's mandate as a key driver of Saudi Arabia's economic diversification. PIF launched CEER in 2022 as the first Saudi vehicle brand to support the development of the national industrial ecosystem, attract investments, create opportunities for the private sector, and increase Saudi GDP.