#Saudi Arabia #Riyadh #Majed Al-Hogail #REGA

Saudi Arabia's Real Estate Landscape Evolving

Recently, a significant development took place in Saudi Arabia concerning the real estate sector, which has repercussions for both domestic and international investors. His Excellency Mr. Majed bin Abdullah Al-Hogail, the Minister of Municipalities and Housing, and President of the Real Estate General Authority (REGA), publicly thanked King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman for the approval granted by the Council of Ministers on July 8, 2025. This approval pertains to updates in the regulations governing real estate ownership by non-Saudis, marking a pivotal shift in the Kingdom's approach to foreign investments in real estate.

The Objectives Behind the Update

The changes in regulations are intended to stimulate the real estate market by attracting foreign direct investments, thereby bolstering the sector’s growth. By simplifying the process and granting more freedom for non-Saudis to purchase properties, Saudi Arabia aims to increase the availability of real estate, laying the groundwork for a more balanced ecosystem within the housing market.

Al-Hogail elaborated that this approval aligns with the Kingdom's broader legislative reforms aimed at enhancing various economic sectors. Particularly, these new regulations represent an effort to expand the real estate market by welcoming investments from both local and international arenas. By doing so, the government hopes to attract global companies and investors looking to tap into the Saudi real estate sector.

Key Features of the New Regulations

One of the most noteworthy features of the updated regulations is the provision for both individuals and entities, including legal residents and non-residents, to own real estate in Saudi Arabia under specific conditions. This would apply particularly to areas with historical and religious significance, such as Makkah and Madinah. Notably, the updated regulations are crafted to promote beneficial investment while considering the social and economic dynamics involved.

The REGA is tasked with identifying geographical zones where non-Saudis can own properties or acquire other real estate rights. This strategic move is believed to create a favorable climate for foreign investors, reinforcing the Kingdom's long-term vision for economic diversification.

Steps Moving Forward

In the coming months, REGA is set to publish the executive regulations related to these changes on their public consultation platform, Istitlaa, within a 180-day period following their initial announcement. With an expected enforcement date in January 2026, these regulations will articulate the procedural requirements and stipulations necessary for non-Saudis to acquire property rights in the Kingdom.

The executive regulations will clarify various processes, including application requirements for prospective non-Saudi property owners, and will ensure that these new policies align with existing laws, including the Premium Residency Law and other applicable regulations that offer privileges regarding property ownership to foreigners.

Conclusion

This regulatory update is a substantial milestone for Saudi Arabia as it seeks to transform its real estate landscape into a more inclusive arena for global investments. As Al-Hogail pointed out, these developments are integral to achieving a balanced real estate ecosystem that benefits both the Kingdom and its international partners. Through this proactive initiative, Saudi Arabia is evidently positioning itself as an attractive destination for real estate investment, catering to an increasingly globalized market.

As the situation progresses, stakeholders, both within Saudi Arabia and abroad, await the implementation of these regulations and the potential they hold for reshaping the future of real estate in the Kingdom. This marks a significant step toward realizing the Saudi Vision 2030 objectives, aiming for economic diversification and sustainable development.