The real estate sector is waiting for qualitative developments in enhancing the foreign investment environment in the Kingdom after the historic decision issued by the Council of Ministers yesterday, Tuesday, July 8, 2025, to approve the updated system for the ownership of real estate by non-Saudis, to come in line with the provisions of the privileged residence system and the regulation of ownership of real estate by GCC citizens in member states for the purpose of housing and investment and other applicable regulations that grant non-Saudis privileges to own real estate and acquire other rights in kind on it.

The real estate sector is waiting for qualitative developments in promoting the foreign investment environment in the Kingdom.

Enhancing foreign investment opportunities

<The decision is not only reflected in increasing real estate trading activity, but also as a tool to attract capital and increase confidence in the Saudi market; this in turn gives the influx of foreign investments a strong push forward; and helps raise the real estate supply by attracting investors and real estate development companies to the Saudi market. The decision contributes to achieving the targets of Vision 2030, which aims to attract foreign direct investment worth $100 billion annually, and according to reports, expenditures entering Saudi Arabia in the first quarter of this year 2025 recorded about 24 billion riyals, an increase of 24%.

The main objectives of the system

Encourage foreign direct investment and increase international capital flows.

Increase the liquidity of the real estate market and stimulate commercial activity in the sector.

<Develop the residential and commercial sector through new real estate development projects. <Achieving a balance between foreign investment and national interests.

Mechanisms that ensure the interests of citizens

The articles of the updated real estate ownership system for non-Saudis come as an extension of real estate legislation aimed at developing the real estate sector and encouraging foreign direct investment, which will contribute to raising the real estate supply by attracting investors and real estate development companies to the Saudi market.

Majid Al-Haqq stressed that the updated system will guarantee the interests of citizens. Majid Al-Hogail, Minister of Municipalities and Housing, emphasized that the updated system takes into account the interests of Saudi citizens through the existence of mechanisms that ensure market control and compliance with the specific procedures seeking to achieve real estate balance, indicating that the system took into account all economic and investment aspects as ownership will be available in specific geographical areas, especially in the cities of Riyadh and Jeddah, and special requirements for ownership in Mecca and Medina.

Majid Al-Hogail said that the updated system takes into account all economic and investment aspects.

Real Estate Authority identifies areas for ownership

<The General Real Estate Authority (GRA) will be tasked with proposing the geographical area in which non-Saudis may own real estate or acquire other rights in kind. This ensures thoughtful governance that takes into account national priorities.

<According to the new system, ownership will be allowed in specific geographic ranges, especially in the cities of Riyadh and Jeddah. The system also stipulates special requirements for ownership in Mecca and Medina due to the specificity of these two holy cities.

<The executive regulations of the system will be published on the Istiqaa platform within 180 days from the date of its publication in the Official Gazette. The system is scheduled to be effective in January 2026.