Beyond Borders: How Non-Saudi Ownership Amplifies Economic Value
Why opening regulated pathways for foreign ownership strengthens Saudi Arabia’s real estate market—and benefits the global economy
Saudi Arabia is entering a new chapter: from selective permissions to a structured, transparent framework for non-Saudi ownership of real estate. In July 2025, the Kingdom enacted the Law of Real Estate Ownership by Non-Saudis, moving to a designated-zones model administered by the Real Estate General Authority (REGA) with mandatory registration of transactions—an intentional shift to attract long-term capital, deepen liquidity, and accelerate development while preserving national priorities.
Policy as a Catalyst
The new law replaces a patchwork of exemptions with clear, rules-based access: non-Saudi individuals and entities—resident or non-resident—may own or invest within government-designated geographic zones, under REGA oversight and registry requirements. This reforms the investor experience (predictability, title security, exit clarity) and aligns with Vision 2030’s objective to modernize markets and expand private investment.
Recent updates from the Capital Market Authority further expand regulated access for international investors. The new provisions allow participation in listed companies that hold real estate within the holy cities, enhancing liquidity and transparency in a manner consistent with existing national safeguards.
Capital Formation, Liquidity, and Quality
Opening well-defined channels for foreign ownership does more than raise headline FDI; it broadens the capital stack—from equity partners and institutional co-investment to development finance—reducing the cost of capital and enabling mixed-income housing, hospitality, logistics, and cultural assets to proceed at scale. In a world of declining global FDI and concentrated digital-economy investment, markets built on transparency and regulatory confidence, investor-friendly frameworks capture a larger share of scarce capital—along with the know-how, technology transfer, and skilled jobs that follow.
In Saudi Arabia, fresh policy signals are already intersecting with demand: 2025 market soundings indicate sizable private buyer interest in residential and giga-project inventory, underscoring the pipeline of deployable capital seeking transparent, investable product.
Tourism, Pilgrimage, and Global Demand
Tourism is a national growth engine. The Kingdom has raised its target to 150 million visits by 2030, with a specific ambition to welcome 30 million Umrah pilgrims annually—a structural driver of accommodation, mixed-use, mobility, and service assets (Ministry of Tourism & Saudi Press Agency, 2023; Arab News, Bloomberg). Strong tourism performance through 2024–25 and rising spend in the holy cities support the case for quality supply, professional management, and diversified ownership, especially where listed-company exposure provides regulated access for international investors.
Local Impact: Jobs, SMEs, and Place-Making
Real estate investment is a jobs multiplier across construction, building systems, and services. International studies in MENA consistently link infrastructure and real-asset spending with significant employment creation and local value chains—contractors, materials, FM, retail, and F&B—especially when paired with SME participation requirements. For Saudi cities, foreign capital tied to designated zones can accelerate placemaking (heritage, waterfronts, cultural districts) and improve livability through global standards while ensuring benefits accrue to local ecosystems.
Global Benefits: Diversification and Stability
For international investors, regulated exposure to Saudi real assets offers portfolio diversification into a G20 economy executing a multi-year pipeline of housing, tourism, logistics, and culture. For the global system, deeper Saudi participation broadens investable supply, supports cross-border co-development, and stabilizes FDI flows at a time of volatility elsewhere. In short: a clearer gateway for non-Saudi ownership is a two-way gain—local development, global diversification.
Guardrails that Build Confidence
Opening markets and protecting national interests are not mutually exclusive. The Kingdom’s model—designated zones, REGA oversight, mandatory registration, and tailored rules for the holy cities—signals a sophisticated approach: invite capital, enforce standards. As implementing regulations roll out, continued clarity on zoning maps, approvals, use-case thresholds, and ESG/data disclosure will further compress risk premia and lower financing costs.
The Road Ahead
Non-Saudi ownership, thoughtfully regulated, is an engine for higher quality supply, better services, and stronger economic spillovers—from jobs to tourism receipts to capital-market depth. The prize is not transactions for their own sake; it is long-term, productivity-enhancing investment that elevates Saudi Arabia’s cities as global destinations.
At the Real Estate Future Forum, policymakers, investors, and developers will unpack how this new framework can unlock bankable partnerships, inclusive growth, and world-class urban outcomes—rooted in Saudi priorities and connected to global capital.