In Saudi Arabia, real estate developers are experiencing heightened attention from foreign investors after the Kingdom’s latest changes to property ownership regulations.
At the “Real Estate Future Forum” in Riyadh, developers indicated that the fresh rules allowing non-nationals to own land are starting to affect market dynamics, including choices made by builders and investors.
The revised legal structure took effect officially on January 22, allowing foreigners to seek property ownership via the Saudi Arabia Real Estate online platform.
According to the updated guidelines, international individuals, firms, and organisations can acquire property throughout the Kingdom, including in key cities like Riyadh and Jeddah.
However, ownership in Makkah and Madinah is still restricted to Saudi firms and Muslim individuals. Developers report that this policy adjustment is already impacting major developments, such as the “Alma Destination” along the Red Sea shoreline.
This coastal mixed-use tourism project is creating prospects for hospitality providers and investors, featuring plans for housing units, lodging options, marina amenities, and leisure areas.
Zuhair Bakheet, CEO of Al Thuraya Al Omranya Properties and lead developer of Alma Destination, noted that the project’s site in Jeddah, positioned between the sacred cities of Makkah and Madinah, boosts its attractiveness to global purchasers.
“If we attract people who would love to have a unit within the Makkah and Madinah region, it’s a good option. If we think of Muslim countries like… Malaysia, Indonesia, Egypt, they would love to have a unit within close proximity of the holy cities,” the official stated.
Another developer incorporating the regulatory update into its plans is Emaar Economic City, the primary developer of King Abdullah Economic City.
Emaar Economic City Chief Investment Officer Ali Al-Khatib informed that the new system marks a substantial change for the industry.
“We believe these new regulations for non-Saudi ownership are a significant turning point in the real estate sector in the Kingdom, and specifically for King Abdullah Economic City. We’ve already seen interest before the system was launched from last year … we’ve had interests from all around the world, from Southeast Asia, from Africa, from Europe, from the West,” he concluded.