The Kingdom of Saudi Arabia underwent a significant economic shift on July 8, 2025, when the Council of Ministers authorised the “Non-Saudi Real Estate Ownership and Investment Law,” which is the country’s first-ever law allowing foreign real estate ownership.
This law permits foreigners to purchase real estate in certain areas, such as Riyadh and Jeddah, with special regulations for holy cities like Medina and Mecca. Within 180 days of the executive regulations being published on the “Istitlaa” platform, official implementation is set to start in January 2026.
Foreign Ownership in Saudi Real Estate
This trend is a key component of the Vision 2030 strategy, which seeks to increase the proportion of Saudi ownership in residential complexes from 70% to higher levels, diversify the economy, spur growth, and draw in foreign investment.
The new law includes provisions that promote the development of sustainable infrastructure in real estate, encompassing both residential and commercial projects. It is legal for residents to own real estate (either premium or work), but price controls are in place to preserve market stability and ensure security of approval.
Major projects require a minimum investment (roughly 30 million riyals), as well as a commitment to carry out residential or commercial projects within five years. This encourages real development rather than just speculation. Under special regulations, the Holy Land is subject to a stricter regulatory framework to guarantee the preservation of its religious and cultural identity, with limited exceptions for endowments or Muslim heirs.
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Significant Economic & Social Consequences
By increasing supply, diversifying demand, and enhancing the economic professionalism of local developers, market economic analysis suggests that the implementation of these initiatives will stimulate the real estate market. In the June quarter of 2025, rental prices—including villas, which saw a 7.1% increase—rose by 7.6%. This occurs as the government opens its doors to foreigners and offers citizens planned land plots in an attempt to reduce inflation.
The National reports that non-Gulf nationals make up 40% of the resident population. If properly managed and implemented, this step will likely give these residents social and employment stability. The Saudi real estate industry will also become more competitive, particularly when compared to Dubai, which allowed foreigners to live in some areas of the country in 2002. This helped to raise property values and build a sustainable infrastructure for both domestic and foreign markets.
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Step 1: 2025 Summer of Investment!
On July 10, 2025, the United Kingdom’s capital, London, launched the “Summer of Investment 2025” initiative in response to this new reality. IIG Estates is organising the initiative in collaboration with the Saudi-British Joint Business Council (SBJBC) and Wuthqa legal advisors.
Days after Saudi Arabia made its historic decision to permit foreign https://esifsix.comillaboard.gov.bd/ ownership of real estate, this event occurred at a pivotal moment. This occasion is a realistic first step in carrying out this decision and looking into potential future investments. A few investors and officials attended the event’s first roundtable, which brought together representatives from Saudi Arabia and the UK’s real estate, financial, and legal sectors. Reviewing a special investment opportunity in Medina, the session’s goal was to create an integrated real estate project that supports sustainable tourism and city infrastructure while also taking into consideration the region’s religious and cultural aspects.
The meeting also covered the Kingdom-approved new legal framework that allows non-Saudis to own real estate. Wuthqa legal consultants provided a comprehensive explanation of the governance structure, compliance systems, and the most essential licensing regulations and specifications. Additionally discussed were the institutional aspects of large real estate projects, including risk management, sustainable planning, and the integration of roles between local and foreign investors.
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Basis for Upcoming Projects and Initiatives
In the upcoming weeks, the “Summer of Investment 2025” series of events will continue. High-ranking officials from both nations will attend a special meeting in the British Parliament on July 21 to strengthen bilateral ties and broaden the scope of economic alliances.
The programme will wrap up on August 4 and 5 with a public exhibition at London’s Jumeirah Carlton Tower Hotel. This is anticipated to draw a sizeable https://deparh.khm.gov.ua/ number of individuals interested in making real estate investments in Saudi Arabia, in addition to development firms and international investors.
To sum up, what started with a roundtable in London may serve as the foundation for numerous initiatives and projects that will alter the real estate market in the Kingdom. This will reshape the relationship between the interior and the exterior in a more open economic setting. In addition to real estate, Saudi Arabia now provides legal stability, confidence, and a new investment climate that is being developed subtly but steadily and consistently.
Read more: London Hosts UK–Saudi Real Estate Reception to Boost Cross-Border Investment Momentum
