Selling the Saudi Dream Globally:Are Private Developers Readyfor Foreign Ownership?
Saudi Arabia’s foreign ownership law entered into force in early 2026, but national awareness alone may not create demand for private developments among non-Saudi buyers.
Saudi Arabia has opened its property market to non-Saudi buyers for the first time in a generation. This significant reform seeks to expand Saudi real estate ownership to non-Saudi nationals, a previously untapped segment. But while the laws are in force, ownership zones are mapped out, and international outreach is underway, it remains uncertain whether the industry is ready to compete for global buyers.
The government has made Saudi Arabia visible on the global stage and continues to build international confidence in its market. PIF-backed developments can capture global attention through their scale, ambition and international partnerships. For private developers, however, the commercial challenge to pull non-Saudi buyers is different. National awareness does not automatically translate into awareness of an individual development, nor does awareness convert to reason or confidence to purchase.
““The opening of the Saudi real estate market does not immediately translate to demand. Private developers must still give international buyers a reason to choose their projects.”
What is foreign ownership in Saudi Arabia?
The Law of Real Estate Ownership by Non-Saudis was approved by Royal Decree M/14 on July 14, 2025, taking effect on January 2026. The law covers non-Saudi individuals (both KSA resident and non-resident), non-Saudi companies, non-Saudi non-profits, international missions and organizations, Saudi companies with non-Saudi shareholders, and funds or SPVs with non-Saudi equity holders. All property types are eligible for ownership, not just residential, though exact limits and permitted rights are set zone-by-zone in the Geographic Scope Document.
Foreign residents can own within designated zones in any city, plus one additional home outside those zones for personal use, except Makkah and Madinah. Non-residents can only buy inside the zones. The ownership caps apply to direct company holdings; funds and SPVs follow a separate structure that gives institutional investors another route into the market.
The designated zones prioritize Riyadh, Jeddah and major developments including NEOM, The Red Sea, AMAALA, Diriyah, Qiddiya and King Abdullah Economic City. Makkah and Madinah are the most restricted, open only to Muslim individuals and to Saudi companies with non-Saudi shareholders.
The legal framework has created access, but has the industry built the commercial capability required to convert that access into demand?
How is Saudi Arabia courting foreign buyers?
Saudi Arabia’s international outreach runs through several parallel streams.
The Ministry of Investment (MISA) has taken the pitch on the road. Sending delegates to Europe’s largest property fairs, including Expo Real in Munich and MIPIM in Cannes, they showcase a $1.7 trillion Vision 2030 development pipeline directly to institutional investors, global developers, and real estate professionals.
The Real Estate General Authority (REGA) has built the regulatory side of the outreach: the Saudi Properties portal lets foreign buyers check ownership eligibility and browse approved zones online, expediting verification through a self-service digital process.
Public Investment Fund (PIF)-backed developments operate as international marketing engines. NEOM has used platforms such as the World Economic Forum at Davos and COP28 to become part of the global conversation around sustainability and future cities. PIF’s Future Investment Initiative (FII) gathers investors and business leaders to Saudi Arabia. And while their high-profile international acquisitions such as Newcastle United and Aston Martin are not real estate plays, they build global recognition and awareness for PIF and Saudi Arabia.
Red Sea Global and Diriyah Company court luxury hospitality partners and international media, while ROSHN Group uses global strategic partnerships to extend Saudi Arabia’s visibility beyond the property sector.
Is national awareness enough to drive demand for foreign buyers?
Government-led outreach builds awareness of Saudi Arabia and creates the general interest private developers can build on. While it may not automatically make private developments visible or compelling to foreign buyers, the opportunity now is utilizing this general interest and give foreign buyers the information and confidence they need to move forward.
Are private developers ready to sell internationally?
Marketing and sales teams of Saudi real estate developers must now expand beyond strategies developed primarily for the domestic market. Foreign ownership laws now require teams to address buyers with different expectations, financing questions and decision criteria. As Saudi projects begin competing with more established international destinations, developers will need market-specific knowledge, capability, and sales processes suited to those buyers.
The go-to-market capability of private developers is vital in realizing the law reform; otherwise this vision remains only a decree.
How should private developers approach the non-Saudi market?
International brokers can offer an immediate route into foreign markets, but distribution alone does not solve the capability gap. Brokers can provide access to buyers and execute transactions, but they do not build the developer’s internal market knowledge, sales capability or direct customer relationships. If the entire international function is outsourced, valuable information about buyer behavior, objections and conversion remains with the broker rather than transferred to the developer. This matters in a new market where repeat buyers, referrals and long-term customer relationships will be critical.
““The go-to-market capability of private developers is vital in realizing the law reform; otherwise this vision remains only a decree.”
There is an alternative path: to bring in project-based expertise that builds the capability internally rather than permanently outsourcing the function. This means identifying the right international buyer markets, assessing whether the product is ready for them, adapting the positioning and sales journey, preparing internal teams and establishing a clear strategy for managing international brokers and other channels. The objective is not simply to generate immediate exposure, but to leave the developer with stronger internal knowledge, systems and customer relationships.
The stakes are high because the benefits of moving early will not be shared evenly. Developers that convert foreign interest into sales first will begin building trust, customer relationships and referral networks while their competitors are still finding their footing.
Saudi Arabia has created the legal foundation and international awareness needed to open the market. Private developers now need to build on that momentum by making their own developments visible, relevant and ready to sell, while giving their teams the expertise and knowledge to compete internationally.
““Developers that convert foreign interest into sales first will begin building trust, customer relationships and referral networks while their competitors are still finding their footing.”
SOURCES
- Ministry of Justice, “Law of Real Estate Ownership and Investment by Non-Saudis,” Royal Decree M/15 (2000), as superseded.
- Real Estate General Authority (REGA), “Questions & Answers About the Updated Law of Real Estate Ownership by Non-Saudis,” continuously updated version, July 2025.
- Enterprise MENA, “Mapping the Real Estate Foreign Ownership Zones,” June 30, 2026.
- Legal analyses of the Executive Regulations, incl. White & Case, Greenberg Traurig, and Bird & Bird.
- “Saudi Arabia Unveils $1.7 Trillion Property Boom and Opens Market to Global Investors,” The European, November 3, 2025.
- uqn.gov.sa, Decisions and Regulations, Article 9.