Saudi Arabia opens doors to foreign property buyers – but is it worth investing?
- tom9622
- Jan 7
- 3 min read
With foreign buyers soon able to purchase property in Saudi Arabia, can the kingdom compete with its Gulf neighbours?
Spears Magazine
With foreign buyers soon able to purchase property in Saudi Arabia, can the kingdom compete with its Gulf neighbours?
Saudi Arabia is emerging as a compelling destination for property investment following the announcement that foreign buyers will be able to purchase real estate in the kingdom, industry experts told Spear’s.
From 21 January, foreign buyers can acquire property in designated zones across the country, according to the Real Estate General Authority, which oversees Saudi Arabia’s property market.
The updated Law of Real Estate Ownership by Non-Saudis, issued by royal decree on 14 July 2025, was designed to attract foreign investment and enhance urban quality of life. While the original law allowed non-Saudi residents to buy a single property for personal use, the revised legislation opens access to all property types within approved zones in cities such as Jeddah and Riyadh.
Ownership in the holy cities of Mecca and Medina remains exclusive to Muslims, with stricter restrictions on foreign investment than elsewhere in the Kingdom.
This policy shift is part of Vision 2030, the Saudi government’s long-term plan to transform the economy and society. Since its launch in 2016 under HRS Crown Prince Mohammed bin Salman Al Saud, the initiative has already lifted the ban on women driving and increased economic transparency, albeit more gradually than in the UAE.
Investment opportunities for UHNWIs
Experts say the changes could create attractive opportunities for long-term investors, but caution is advised.
‘It can be a very interesting opportunity, but it needs to be seen in the right way,’ said Emmanuel Aymes, consultant at Sotheby’s International Realty. ‘Saudi Arabia isn’t a short-term trading market – it shouldn’t be approached like Dubai or London. Where it becomes attractive is for investors who are comfortable with a longer horizon and who are selective about location and asset quality.’
Details about the zones available to foreign buyers have yet to be fully released. To gain a clearer understanding of how best to invest in Saudi Arabia, Aymes advises waiting until this information is available.
‘What investors really care about is clarity and knowing what they can own, where they can own it, and how easily they can transact,’ he said. ‘Once the designated zones and rules are clearly communicated, the restrictions themselves won’t be the main barrier.’
Saudi Arabia versus the UAE
While Saudi Arabia’s property market is still nascent, it could complement the UAE rather than compete directly.
‘Over time, I see Saudi complementing the UAE rather than replacing it, attracting a different type of buyer, more strategic, more patient, and often more regionally connected,’ Aymes said. ‘This will only help the overall Gulf Cooperation Council’s (GCC) worldwide position.’
Established in 1981, the GCC is a political and economic alliance of six Gulf states: Saudi Arabia, Kuwait, Oman, Qatar, Bahrain and the UAE.
Maria Morris, founder of Dubai-based property brokerage Maria Morris Global, said: ‘Saudi Arabia is laying the foundations for a globally significant super-prime market. Early movers with a strategic approach will be best positioned to benefit.’ She emphasised that this is a carefully planned step by the government, focused on long-term stability and raising the Kingdom’s global profile.
A long-term play
Imran Sheikh, founder of Dubai-based property investment firm BlackOak Global, also emphasised the region’s long-term appeal.
‘It can be an incredibly good investment if the expectations for the investors are aligned to a longer-term horizon, such as ten years plus,’ he said.
‘Initially, the market will probably have to mature to a significant level before foreigners buy for personal use. Saudi Arabia is seen very much as an unknown and restricted market and that stigma will only dissipate over time.’
Sheikh added that the Kingdom will need to further up its foreign property buying laws for it to become a truly international real estate powerhouse.
‘Foreigners buy for personal use based on them living in the country and potentially seeing some capital appreciation, or for second homes and that is limited to a small demographic at this time.’
Saudi Arabia’s newly opened property market represents a strategic, long-term investment opportunity. While it may not rival the UAE immediately, early investors who approach the market with patience and selectivity could reap significant rewards as the Kingdom continues to modernise and expand its global footprint.
