New Saudi law to set off region’s next freehold boom

New Saudi law to set off region’s next freehold boom

It will allow non-Saudi nationals to own property in all parts of the kingdom

The Saudi real estate sector accounts for nearly 5.1 per cent of the kingdom’s GDP and 12.8 per cent of the non-oil market. - KT file

Published: Wed 29 Mar 2023, 2:17 PM

An impending landmark law that allows non-Saudi residents to own property in the kingdom will be a game-changer for the Middle East’s property market, prompting more countries in the region to join the freehold boom.

The new law, which has been eagerly awaited by the global investor community, is under review and will allow non-Saudi nationals to own property in all parts of the kingdom, including Makkah and Madinah, according to Abdullah Alhammad, CEO of the Real Estate General Authority (Rega).

“The upcoming law for foreigners to own real estate is in its final stages, and shall be passed soon. It is broader and more inclusive than the current property-owning system,” he said.

The reform is expected to kick-off a new round of freehold boom in the Gulf region more than two decades after it was trail-blazed in the UAE, property market experts said.

“We have monitored the negative effects of foreign ownership of property in order to avoid them