Saudi Arabia passes major real estate law that will allow it to be another Dubai. Details here

Saudi Arabia has passed a law that will permit foreigners to buy property in specific areas in Riyadh and Jeddah. The crucial move is aimed at luring in more foreign investment as part of the Kingdom's policy of diversifying away from oil dependence.

 

The reform will come into effect in January 2026, and areas earmarked for foreigners will be decided by the Real Estate General Authority. However, there will be strict controls to protect the interests of Saudi citizens and national priorities. The authority will also release detailed regulations that will define eligible property zones, foreign ownership procedures, investor qualifications and compliance mechanisms, according to reports.  

 

The move will contribute to raising the real estate supply by attracting investors and real estate development companies to the Saudi market,"  Majed bin Abdullah Al-Hogail, Minister of Municipal Rural Affairs and Housing, told Saudi Press Agency.

 

While this is expected to trigger a real estate boom in the country, it will also benefit companies that could invest in apartments or villas to accommodate their staff. It will also enable prominent expats to buy a home in the kingdom. 

 

The Kingdom also hopes to replicate the real estate boom witnessed in Dubai, which saw property levels match New York City and London. The UAE now allows 100% foreign ownership of real estate brokerages, investment consultancies, and development firms.

 

The move caused the Saudi real estate stocks to rally, in line with last year's growth, wherein the real estate sector’s contribution to the national economy nearly doubled, from 5.9 per cent of GDP in 2023 to 12 per cent in 2024.  Major cities like Riyadh, Jeddah, and Dammam are seeing a rise in demand for housing, thanks to the population and infrastructure growth. 

Middle East