New regulations governing non-Saudi ownership of real estate will boost business expansion and competitiveness of the Kingdom’s investment environment, ministers have said. The changes, including the geographical zones for non-Saudi real estate ownership, were approved by the Cabinet — chaired by Custodian of the Two Holy Mosques King Salman bin Abdulaziz — on June 23.
Market Growth and Vision 2030
The move comes as Saudi Arabia’s real estate sector is experiencing rapid growth, underpinned by the Kingdom’s Vision 2030 economic transformation agenda. The market, valued at around $77 billion in 2025, is projected to nearly double to $141.6 billion by 2034, growing at a compound annual growth rate of 6.73 percent, according to IMARC Group.
Ministerial Praise
Commerce Minister Majid Al-Qasabi was among the first to react, and in a post on X said the issuance of the regulations would serve as “a strong catalyst for companies to expand their businesses and enhance competitiveness,” as well as a key enabler for attracting global talent.
Investment Minister Fahd bin Abduljalil Al-Seif also praised the move, saying the Cabinet’s approval would contribute to the competitiveness of Saudi Arabia’s investment environment and strengthen the presence of foreign companies in the Kingdom. He added that the regulations would provide foreign firms with a clearer framework for establishing operations, expanding their activities, and making long-term investments in the Saudi market.
Regulatory Certainty
Al-Seif added that approving the geographical zones and executive regulations represented a significant step toward greater regulatory certainty for investors by defining ownership boundaries, property rights, obligations, and pathways for use. This, he said, would allow foreign companies to plan their investments, headquarters, and operational projects along a structured and transparent path.
The minister also highlighted the broader economic impact, saying that enabling foreign companies to own property within defined zones would support Saudi Arabia’s attractiveness as a regional and global business hub, and open wider opportunities across sectors, including real estate development, infrastructure, services, and technology, as well as supply chains, and regional headquarters.
Geographical Zones
The General Real Estate Authority outlined the geographical zones where non-Saudi ownership will be permitted. In Makkah, these include Abraj Makkah, Al-Manar, Burj Ajyad, and King Salman Gate, as well as Tilal Village, Jabal Omar, and Dhakhir Makkah. Dahiyat Sumou, Masar, and Makkah Zones 1 and 2 are also included. In Madinah, the approved zones cover Al-Ghurra, Madinah Zones 1 and 2, Al-Mahwa, and Darat Al-Hijra, as well as Downtown Madinah, Diyar Al-Maqar, and Ruaa Al-Madinah. The Knowledge Economic City and Mishraf are also included.
In Riyadh, ownership will be permitted in multiple areas, including Qiddiya, New Murabba, the Sports Boulevard and Arts District. Also, Diriyah Gate, King Salman Park, and Sidra will be included alongside the King Abdullah Financial District, King Salman International Airport, and the Transit-Oriented Development site. Jeddah’s approved zones include the city center and development zones 1 through 55 across the governorate. In AlUla, zones 1 through 17 are included.
The regulations also cover a geographical zone for giga and mega-projects across the Kingdom, encompassing Neom, Amaala, and the Red Sea project, as well as special economic zones including Jazan, Ras Al-Khair, and King Abdullah Economic City.
