Saudi Arabia intends to loosen its foreign property ownership regulations in order to attract investments in the real estate sector as part of its diversification strategy.
The new law, which will allow foreigners to buy all types of real estate property, is “in its final stages and will be made public in a short period,” according to Abdullah Alhammad of the Kingdom’s Real Estate General Authority.
This follows a directive given by Saudi Arabia in 2021 enabling non-Saudis who are legal residents of the country to acquire a single property subject to certain criteria.
However, the REGA CEO stated that the new law for real estate ownership will be “broader and more comprehensive than the current law,” since foreigners will be permitted to own any type of property, including commercial, residential, and agricultural properties, in compliance with the requirements.
“It allows foreigners to own property everywhere in the Kingdom, including Makkah and Madinah”
Previously, foreigners were forbidden from purchasing property in holy cities, but Alhammad stated that “the initial reading of the law shows that it allows foreigners to own property everywhere in the Kingdom, including Makkah and Madinah.”
He stressed that any concerns about the harmful consequences of foreign ownership of property were monitored in advance, and solutions for all difficulties and inappropriate practices were developed.
The Kingdom’s latest move may open up new investment opportunities for ex-pats and foreign investors seeking greener pastures outside of conventional markets such as the UAE.