Saudi Arabia Permits Foreign Ownership in Real Estate Sector

Saudi Arabia's Ministry of Investment has announced that foreign investors are now permitted to own and trade real estate within the Kingdom, subject to specific conditions aimed at regulating such investments. This initiative aligns with the nation's Vision 2030 plan to diversify its economy and attract international capital.

A primary stipulation is that properties eligible for foreign ownership must be located outside the boundaries of Makkah and Madinah. The Ministry has emphasized that this measure is in place to preserve the sanctity of these holy cities. Additionally, foreign investors are required to obtain prior approval from the Ministry before proceeding with any real estate transactions. This approval process ensures that investments align with the Kingdom's broader economic and developmental objectives.

The Ministry has also set financial thresholds for these investments. The combined cost of land acquisition and construction must be no less than 30 million Saudi Riyals. This criterion is designed to attract substantial investments that contribute meaningfully to the local economy and infrastructure.