From January 2026, Saudi Arabia will allow foreigners to buy and have goods in designated areas, reversing long -standing restrictions to attract more foreign investments.
Approved in July, the new “Real Estate Property and Investment Law by non-Saudis” opens the door to global investors, banks and institutions to support the mega of ambitious projects of the Kingdom, including The Line and Diriyah of Neom.
Earlier this year, the real estate price index of Saudi Arabia, which includes commercial and residential segments, increased by 4% compared to 2024. Real estate data is compiled by the General Authority for Statistics.
The designated areas include capital Riyadh and the Jeddah shopping center. The restrictions apply to the holy cities of Mecca and Medina. The last set of reforms is part of the “Vision 2030” of the Crown Prince Mohammed, a project to diversify the economy and the dependence of the income of hydrocarbons.
Comparisons are already being executed in the real estate reforms of Dubai in 2002 which sparked a wave of investment in the sector, which has become an important contributor to gross domestic product (GDP). Last year, Dubai Land Department declared that she was aimed at doubled the contribution to Dubai GDP at 73 billion AED (about $ 20 billion.)
Analysts warn that the sector, although promising, is at a stage of development and could lack regulation required. “It presents a new channel to expose itself to an increasing economy, fueled by ambitious projects – but that the market, while offering growth potential, is always emerging with an evolving regulatory framework,” explains Osama Al Saifi, Director General of Mena at Traze, an online trading platform.
Once the property -based property law has been officially published, the General Real Estate Authority in Saudi Arabia has 180 days to issue detailed regulations – according to a timely and favorable commitment to investors.
Investors are optimistic, but Saudi Arabia faces strong regional competition, in particular the United Arab Emirates. “Dubai offers a mature, stable and very liquid market with a worldwide legal system recognized for property rights,” notes Al Saffi.
The kingdom has already made several investment reforms this year, including a new law which allows citizens and residents of the Gulf Cooperation Council to invest directly in the Saudi stock market – the tadawul.