The updated system for owning properties in Saudi Arabia has come into effect at the beginning of this year, allowing foreign buyers to own properties in the Kingdom's real estate market.
According to Bloomberg, these reforms are integrated with other reforms, as the Saudi Financial Market Authority has decided to open the stock market to foreign investors starting from February, in the latest step to boost investment flows into the largest market in the Middle East.
Real estate developers hope that the implementation of the step will attract international investors to the market. The Kingdom has started to gradually ease some restrictions imposed on certain foreign residents, and it is in the process of identifying projects and areas where foreigners are allowed to own properties.
Bloomberg quoted Matthew Green, the head of Middle East and North Africa research at CBRE Real Estate, saying: "The new law will bring a qualitative leap in the market. There are huge capital funds that wish to invest there, and we will begin to see these opportunities become available in both development and financing fields."
With the increase in cash flow from abroad, the Kingdom will need to provide enough new homes to ensure that prices do not rise significantly for Saudis, according to Bloomberg.
Apartment prices in Riyadh have risen by 96% from early 2019 to the third quarter of 2025, while villa prices have increased by 53%.
Government Projects
The new law is expected to revitalize many Saudi projects started by the government, and it is likely to achieve quick returns on investments.
Experts say that foreign developers, suppliers, and contractors will be able to enter the market through joint ventures with local companies on equal footing with the implementation of the law.
More than 600,000 housing units are expected to be built in Saudi Arabia by 2030, including 110,942 units to be delivered in 2026 alone, according to Knight Frank.
The population of Saudi Arabia, approximately 35 million, serves as a strong indicator of future demand.
Government data shows that about 34% of Saudis are under 14 years old, which is likely to boost the demand for housing in the coming years.
