Saudi Arabia could replicate the success of Dubai in attracting foreign property investors, including those from Hong Kong and mainland China, following the kingdom’s relaxation of homebuying rules, according to experts.
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A new law approved by the kingdom last month is set to allow non-Saudis to buy real estate in designated zones. The law will take effect in January.
“Saudi Arabia can absolutely succeed at making itself a major destination for investment and residency,” said Kashif Ansari, co-founder and CEO of real estate broker Juwai IQI. “The new law will give non-resident foreigners a clear path to own property in Saudi Arabia for the first time.”
Ansari said the Saudi capital of Riyadh and another major city, Jeddah, offer greater value than Dubai and Abu Dhabi in the United Arab Emirates (UAE). For comparably sized residential units, the average price per square foot in Jeddah is US$100 and in Riyadh, it is US$123. In Dubai, that figure rises to US$400.
Foreigners owned around 43 per cent of all homes in Dubai, according to data compiled by the think tank EU Tax Observatory. Sales of homes in Dubai worth more than 10 million dirhams (US$2.7 million) jumped tenfold to 4,670 in 2024 from 2020, according to data tracked by Savills. In the first quarter of this year, 1,300 such homes changed hands, up 31 per cent from a year earlier, the property consultancy added.
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Chinese buyers accounted for 14 per cent of Dubai property sales so far this year, up from 13 per cent a year earlier, Savills said.