Starting in January 2026, the Kingdom of Saudi Arabia will allow foreigners to buy and represent property in custom areas, which leads to long restrictions to attract more foreign investment.
It was approved in July, the “Real Estate and Investment Law on the Nights” opens the door for global investors, banks and institutions to support the ambitious and ambitious projects in the Kingdom, including Neom’s The Line and Diriyah.
Earlier this year, the real estate price index in the Kingdom of Saudi Arabia, which includes commercial and residential sectors, increased by 4 % from 2024. Real estate data are collected by the General Authority for Statistics.
The designated areas include the capital and the commercial center Jeddah. Restrictions apply to the holy cities in Makkah and their Madir. The latest group of reforms is part of Crown Prince Mohammed bin Salman “Vision 2030”, a project to diversify the economy and reduce dependence on hydrocarbon revenues.
The comparisons are already drawn to real estate reforms in Dubai in 2002 that launched a wave of investment in the sector, which has become an important contribution to GDP (GDP). Last year, the Dubai Ministry of Lands said it aims to double the contribution to Dubai GDP to 73 billion dirhams (about 20 billion dollars.)
Analysts warn that the sector, despite its promising, is at an early stage of development and may lack the required regulations. “It offers a new channel for an increased economy, supported by ambitious projects – however, the market, while providing growth capabilities, is still emerging with an advanced regulatory framework,” says Osama Saifi, Managing Director, Mina in Trez, online trading platform.
Once the property ownership law is officially published, the Real Estate Public Authority in the Kingdom of Saudi Arabia has 180 days to issue detailed regulations-and that is a commitment to the friendly execution of the investor in a timely manner.
Investors are optimistic, but Saudi Arabia is facing severe regional competition, especially from the United Arab Emirates. “Dubai provides a mature and stable market, very means with a global -recognized legal system for property rights,” Al -Safi notes.
The Kingdom has already reformed many investment reforms this year, including a new law that allows the citizens of the Gulf Cooperation Council to invest directly in the Saudi stock market – Tadawul.
