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Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)
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Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)

Saudi Arabia’s real estate market is preparing to enter a new investment phase following the approval of the executive regulations governing property ownership by non-Saudis, a move that strengthens the sector’s appeal to foreign capital and opens the door to broader opportunities across residential, commercial, and hospitality projects.

The sector is expected to benefit from a wider investor base, positioning real estate as one of the key drivers of growth within the Kingdom’s expanding economy.

During its session on Tuesday, the Council of Ministers, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the executive regulations for non-Saudi property ownership and endorsed the geographical zones in which non-Saudis will be permitted to own real estate.

Minister of Municipalities and Housing Majed Al-Hogail said the Cabinet’s approval of the executive regulations and designated ownership zones marks an important step toward launching a new phase for the Saudi real estate market.

The sector is entering a new stage as the impact of the non-Saudi property ownership framework begins to take shape in market activity. Specialists expect the influx of new investments to encourage developers to expand supply and improve the quality of real estate products.

Experts believe the next phase will not be limited to growing demand. It is also expected to intensify competition among projects, enhancing market efficiency and contributing to a stronger balance between supply, demand, and prices.

Stimulating the Market

Khaled Al-Jasser, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the move represents a significant boost for the Kingdom’s real estate ecosystem, strengthening investment activity and stimulating market momentum by broadening participation and expanding available opportunities.

According to Al-Jasser, the measure is also expected to increase real estate supply, enhance competitiveness, improve market efficiency, and provide beneficiaries with a wider range of options and more balanced pricing.

The chairman of Amaken International Group added that the initiative enhances the attractiveness of the Saudi real estate market to foreign investors, particularly in light of the Kingdom’s evolving legislative environment and ongoing reforms. These factors support the inflow of foreign capital and reinforce the real estate sector’s position as one of the most promising sectors under the objectives of Vision 2030.

Attracting Capital

For his part, economic analyst Ahmed Al-Shahri told Asharq Al-Awsat that the approval of the executive regulations for non-Saudi property ownership marks a turning point for the market because it addresses a critical issue: transforming real estate from a locally traded asset into a more open investment sector capable of attracting capital.

The significance of the move lies not only in allowing ownership but also in creating a more competitive market capable of attracting developers and investors seeking long-term opportunities in a Saudi economy currently undergoing rapid expansion.

Al-Shahri expects the impact to be reflected in stronger demand for high-quality real estate products, increased appeal of residential, commercial, and hospitality projects, and greater incentives for developers to bring additional supply to market in order to meet the needs of new categories of investors and residents in the Kingdom.

“This means the most significant impact may be seen in the expansion of the market’s overall size, rather than solely in higher prices,” he said.

Price Balance

He continued: “As for prices, the initial phase may support values in the most attractive locations due to the entry of new demand. However, over the medium term, increased supply and stronger competition among developers will serve as an important balancing factor, because a healthy real estate sector is not built on continuous price increases but on the market’s ability to maintain equilibrium between supply and demand.”

Al-Shahri explained that the move could shift the sector from a phase of “product scarcity and rising value” to one defined by “product quality and market competitiveness.” Projects distinguished by location, services, and design will become best positioned to attract investment, while lower-quality developments may face greater pressure to preserve their value.

The non-Saudi property ownership law entered into force on January 22, 2026. The framework consists of 15 articles governing property ownership procedures for foreign individuals, companies, and non-profit entities.

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Business

Fewer Than 20 Ships Transited Strait of Hormuz at the Start of the Week

Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
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Fewer Than 20 Ships Transited Strait of Hormuz at the Start of the Week

Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer

Fewer than 20 commodity vessels transited the Strait of Hormuz at the start of the week, shipping data showed on Monday, as Iranian and US blockades restrict traffic through the chokepoint for energy shipments.

Four vessels crossed the strait on Sunday, initial data from shiptracker Kpler showed by 0228 GMT, with 13 on Saturday. The figures could change as some ships had switched off transponders on their way through.

That compared with Friday's figure of 16 transits, with two empty very large crude carriers (VLCCs) entering the Gulf with the tracking devices switched off, one heading to Iraq and the other to ⁠Bahrain, the data ⁠showed.

A VLCC carrying 2 million barrels of Emirati crude exited the strait on Thursday.

Eight very large gas carriers transited the strait over the past three days, the data showed, according to Reuters, six of them entering empty while the others carried liquefied petroleum gas (LPG) loaded from Iran and exited the Gulf.

Overall traffic volumes remained suppressed ⁠in the week to August 21, as vessels aborted transit plans or switched routes through the strait's north after attacks, the United Kingdom Maritime Trade Operations (UKMTO) agency said in a report.

A total of 89 vessels exited the strait while 103 entered over the seven-day period, the report, based on Automatic Identification System (AIS) data, showed.

"Traffic remains well below normal levels, with AIS-detected transits approximately 90% below pre-conflict baselines and declining since the June 24 to June 26 peak," it added.

Tanker traffic, at 45% of the total, continued ⁠to dominate movement ⁠through the strait, the agency said. Of these, 56% were tankers that carry crude oil, oil products or chemicals while LPG carriers accounted for a further 24%.

Since July 6, the UKMTO has reported 23 incidents of projectile strikes, leading to bridge, engine-room, and structural damage across vessels in the strait and its vicinity.

A total of 24 commodity vessels sailed through the Bab el-Mandeb strait on Sunday, down from Saturday's figure of 32, which was an increase from 22 on Friday, Kpler data showed.

Two VLCCs entered the Red Sea on Saturday with one carrying Iraqi Basrah crude and the other empty, it showed.

Business

Oil Falls as Trump Pledges Economic War on Iran

LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
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Oil Falls as Trump Pledges Economic War on Iran

LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP

Oil prices fell on Monday as investors braced for details of a US plan to isolate the Iranian economy that President Donald Trump billed as the "most crushing" financial operation ever against Tehran.

Asian stocks were mostly down, with South Korea's tech-rich Kospi falling more than three percent after Samsung Electronics said it spent $80 billion to buy back its own shares following weeks of turbulent trading.

The chip giant's shares, along with those of rival SK hynix, peaked in June on optimism for the artificial intelligence boom, but have since fallen amid investor jitters and a broader tech rout.

In an important week for AI, investors are also looking towards an earnings report from Nvidia, the world's most valuable company and a bellwether for the sector.

The recurring question for the US chipmaker is whether the AI boom will continue to accelerate as the technology takes over more corners of the broader economy.

"The spending machine is still running, but the bill is getting heavier," said Stephen Innes of SPI Asset Management.

"Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills."

Chinese tech giant Alibaba is keeping focus on the sector after announcing on Sunday that it plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions.

The firm, known for its open-source "Qwen" AI models, has been ploughing tens of billions of dollars into the technology, with shareholders eager to see how it will monetize the huge investments.

Tokyo and Shanghai closed down 0.7 percent and 0.6 percent respectively, echoing losses across Asia that included Taipei, Wellington, Bangkok, Mumbai and Jakarta. Sydney, Singapore, Manila and Kuala Lumpur posted marginal gains.

Hong Kong was down nearly two percent despite fast-fashion giant Shein announcing its market debut will take place in the Chinese financial hub on September 1.

The long-awaited listing would value the group -- known for its vast selection of products at stunningly low prices -- at close to $27 billion.

London was flat at the open, while Paris and Frankfurt were down 0.2 percent.

Eyes are also on US Treasury boss Scott Bessent, who said he would give more details in a news conference on Monday on a fresh push to pile economic pressure on Iran.

The United States warned allies and China on Thursday to join Trump's new campaign, which comes as the unpopular war in the Middle East drags toward the six-month mark.

US Vice President JD Vance acknowledged the plan was a "delicate dance" because Iran will "try to apply economic pressure to us".

Asked whether the United States would pressure China, Bessent told CNBC that "many conversations are best to have in private", but he also called on Beijing "to get with the program".

Both main crude contracts were down around two percent, with the Brent benchmark sitting at $92 a barrel, AFP reported.

Traders will also be watching this week's annual gathering of central bankers, economists and finance chiefs in Jackson Hole in the United States, hoping for some clarification on US monetary policy.

The meeting comes after the Treasury bought its own bonds last week in an effort to push down borrowing costs after the 30-year yield surged to levels last seen in 2007, just before the global financial crisis.

Yields have risen on inflation fears and as the United States reported that its federal debt had topped $40 trillion.

Business

Norway Will Drill in Arctic Regardless of EU’s Position, Says Energy Minister

Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
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Norway Will Drill in Arctic Regardless of EU’s Position, Says Energy Minister

Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)

Norway will continue developing its oil and gas resources in the Barents Sea regardless of the European Union's support for a moratorium on Arctic hydrocarbon supplies, and no longer sees itself as Europe's "green battery", Energy Minister Terje Aasland told Reuters.

Following Russia's 2022 invasion of Ukraine, Norway has become Europe's largest supplier of natural gas, meeting around 30% of gas demand of both the European Union and Britain.

Last year, the country's gas production was near record levels, while oil output reached its highest level since 2009. Official forecasts, however, show production falling sharply after 2030 unless new resources are discovered and developed.

"In today's geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests," Aasland said in a Reuters interview ahead ‌of ONS, Norway's biannual ‌energy conference, which begins in Stavanger on Monday.

The European Union currently supports a ban ‌on ⁠new drilling in the ⁠Arctic on environmental grounds but is considering revising its policy in response to concerns about energy security.

Anders Opedal, CEO of Equinor, Norway's biggest oil firm, said oil and liquefied natural gas (LNG) from the Barents Sea can be shipped anywhere in the world if rejected by the EU.

"The only thing that will suffer from this is actually European security. We have the flexibility," Opedal told Reuters on Monday.

NORWAY AIMS TO MAINTAIN OUTPUT LEVELS

Aasland said Norway aims to maintain petroleum production and exports at roughly current levels until at least 2035, and Barents Sea production will be key.

"If Norway is to remain a long-term supplier of oil and gas to Europe..., then the ⁠Arctic must be part of that discussion," the energy minister said.

In talks with EU ‌officials, Norway has argued that the parts of the Barents Sea opened to ‌petroleum activity are also ice-free like in the North Sea, and so less prone to oil spills and other environmental impacts, and are ‌helping to sustain jobs and settlement in the country's northern regions bordering Russia.

Aasland believes Norway's arguments are being heard in Brussels, ‌but added that it was the country's sovereign right to develop the Barents Sea resources even if the EU continued to support a moratorium.

"We would develop these areas, and then it will be up to the EU whether they should have a moratorium on buying that gas or oil," Aasland said.

Arctic oil would be sold into global markets regardless, while gas could be exported worldwide as liquefied natural gas from ‌Equinor's Melkoeya LNG plant near Hammerfest, he added.

International Energy Agency Executive Director Fatih Birol has also urged the EU to reconsider its opposition to new Arctic oil and gas developments, ⁠arguing that future supplies ⁠will be needed to support energy security.

Critics of such a move argue that new Arctic projects would take many years to come online and would do little to address Europe's near-term energy challenges.

GREEN BATTERY ‘A FLAWED IDEA’

In addition to oil and gas, Norway produces a surplus of renewable energy most years from an extensive network of reservoirs and waterways feeding hydroelectrical plants, which it has exported to Europe via cross-border power cables.

Norway has previously presented itself as "the green battery" of Europe, but the minister says this idea is now outdated as Norway alone can't balance the European power market.

"It was a flawed idea," Aasland said.

The idea helped drive the construction of new power interconnectors, including links to Britain and Germany, but has drawn some opposition in Norway as European electricity prices have escalated.

Deeper integration with Europe's power system left Norway more vulnerable to continental price swings.

Aasland said Norway will not build new interconnectors but remains committed to strong power sector cooperation with Europe.

He urged countries on the continent to strengthen their stable power supply, weakened by coal and nuclear plant closures and a lack of investment in new gas-fired generation.

Doing so will lower prices and build greater reciprocity when it comes to power flows between different countries.

"The future lies in having a very strong and integrated system," Aasland said.