Why is this important
Saudi Arabia is ready to open large cities for foreigners to purchase real estate. This situation could fundamentally change the housing and investment market in the Middle East, as it would attract additional capital and increase competition in the market. For foreigners, this will be an opportunity to enter one of the most closed and promising markets, and for the kingdom — a way to accelerate development within the framework of the Vision 2030 strategy.
What happened
- The country’s authorities are preparing amendments to the real estate law, which will allow foreign citizens to purchase housing and commercial properties in a number of zones.
- Residential buildings, commercial buildings, industrial and agricultural plots, and land for construction will be available for purchase.
Open territories
- For the acquisition of facilities and territories, it is planned to open special zones in four major cities: Riyadh, Mecca, Medina, and Jeddah.
- At the same time, only Muslims will be able to purchase real estate in Mecca and Medina.
- Also, for foreign ownership in each zone, the share of 70-90% will be limited.
- Shared ownership will emerge, allowing investors to purchase parts or shares in objects.
- In addition, foreign investors will be able to purchase controlling stakes in local companies.
Context
- The kingdom is reforming the economy to reduce dependence on oil and attract more investment.
- One way is to open a market for foreign investors and entrepreneurs.
- Admission of foreign capital can attract billions of dollars, increase employment, and accelerate the construction of new districts.
