How Foreign Investment Incentives Are Shaping Saudi Real Estate

Jun 19, 2025

A historic change is happening in Saudi Arabia. The Kingdom is in the process of diversifying its economy and lessening its reliance on oil proceeds under the Vision 2030 blueprint. One of the main pillars of this plan is liberalisation of the real estate industry to foreign investments- a change that will be enhanced with daring policy changes, infrastructure development, and a few incentives.

Not only are these changes transforming the urban Landscape of the country, but they are also making Saudi Arabia a regional real estate investment hub. This is how the new foreign investment inducements are transforming, and why the international investors are becoming interested.

Key Incentives Attracting Global Investors

1. Full Foreign Ownership Rights

Previously, the ownership of real estate in Saudi Arabia was restricted to Saudi nationals and the citizens of the GCC. But with new regulatory reforms, it is now possible to own 100 per cent foreign participation in most of the sectors, such as real estate development, property management and leasing. This provides investors with control and legal certainty like never before, a critical consideration in long-term capital investment.

2. Residency-by-Investment Programs

In 2023, Saudi Arabia launched a new version of the Premium Residency Program, via “Golden Visa”, which grants long-term or permanent residency to foreigners who invest in the Kingdom. The most important qualifying option is the real estate investment, thus this will be an attractive choice to international investors, who need residency, tax advantages and a business-friendly environment.

3. Economic Cities and Special Zones

Developments such as NEOM, the Red Sea Project, Qiddiya, and King Abdullah Economic City (KAEC) are being marketed as innovations and tourist destinations. In these areas, there are special tax exemptions, low-rated income tax, and simplified business licensing, making it the perfect environment to attract foreign investment in hospitality, housing, and mixed-use projects.

4. Streamlined Licensing & Regulatory Reform

The Saudi Ministry of Investment (MISA) and the General Authority of Real Estate (REGA) have unveiled expedited licensing and centralised platforms to foreign investors. These systems contribute to less red tape, faster approval time, and greater transparency- it's never been this simple to get into the market.

Where the Opportunities Are

Riyadh: Due to the fast urbanisation of the capital and the efforts of relocating the government, the city is one of the best real estate hot spots.
Jeddah: Jeddah is getting luxury and commercial real estate interest with its continued waterfront developments.
NEOM: The megacity, which is costing half a trillion dollars, is attracting worldwide interest due to its futuristic infrastructure and its receptiveness to foreign investment.
Tourism Zones: Resort developments and heritage restoration projects are high-potential returns that the Red Sea coast and AlUla are offering.

Market Impact So Far

These incentives have paid off as Saudi Arabia experienced a 20 per cent year-on-year growth in real estate FDI in 2024, regulatory data showed. Residential, hospitality and logistics developments are also being built in new projects- many with huge foreign investments.

Key international developers, such as Emaar, Accor, and Hilton, have already increased their presence in the Kingdom, and new tokenised real estate platforms are also being considered to involve investors at the retail level.

Final Thoughts:

Saudi Arabia is not only an economy that has abundant oil deposits anymore, but also a global real estate destination. The Kingdom has some compelling incentives, ambitious urban plans and is determined to open its economy to the world.

The real estate market in Saudi Arabia offers a rare and opportune investment option to foreign investors seeking to diversify their portfolio in a reform-oriented high-growth environment.