(MENAFN- The Arabian Post)

Saudi Arabia has revealed the complete details of a groundbreaking law that regulates real estate ownership by non-Saudis, following its approval by the Cabinet earlier this month. The law, which will be enacted 180 days from its publication, signals a significant shift in the Kingdom's stance towards foreign ownership of property, opening up new opportunities for individuals, companies, and non-profit entities abroad.

The law, published in the official gazette Umm Al-Qura, outlines a comprehensive framework allowing non-Saudis to acquire property or establish real rights over land in the country. The key element of the reform is its establishment of specific geographic zones where foreign ownership is permitted, a move expected to attract considerable international investment.

The Cabinet will play a pivotal role in defining the boundaries of these designated areas, which are likely to be concentrated in key urban and economic hubs such as Riyadh, Jeddah, and the Eastern Province. While the precise locations are yet to be announced, officials indicate that the decision will be based on strategic economic priorities, aiming to stimulate growth and diversification in critical sectors like tourism, hospitality, and logistics.

One of the core principles of the new law is its flexibility. Unlike previous regulations, which were highly restrictive, the law grants non-Saudis the opportunity to own real estate in various forms, including commercial and residential properties. The legislation outlines conditions under which foreign entities can acquire land, offering them the chance to leverage the Kingdom's thriving economy and vibrant business environment.

This legal shift is expected to have a transformative impact on Saudi Arabia's real estate market. Analysts predict an influx of foreign capital as investors look to take advantage of the Kingdom's growing appeal as a regional hub. The move is also seen as a step towards diversifying the economy, in line with the objectives set out in Saudi Arabia's Vision 2030, which aims to reduce the Kingdom's dependence on oil revenues and foster sustainable growth through non-oil sectors.

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Experts note that while the law represents a major departure from previous policies, it does not open up the entire country to foreign ownership. Instead, the policy is focused on ensuring that foreign property holdings contribute meaningfully to the national economy. The Cabinet will likely impose further regulations to balance the interests of local stakeholders with the benefits of foreign investment. The move could foster job creation, provide a boost to construction and development projects, and potentially increase the demand for high-quality infrastructure in designated zones.

The new law also highlights Saudi Arabia's efforts to modernise its regulatory environment, providing clarity for international investors who have long been wary of the Kingdom's real estate market due to its complex legal framework. While non-Saudis have previously been able to invest in real estate through specific channels like joint ventures and special economic zones, this new legislation offers a more straightforward path for foreign ownership, which could position Saudi Arabia as a competitive player in the global real estate market.

For real estate developers and global companies, this development could mean greater opportunities to tap into a burgeoning market. Large-scale projects, such as the NEOM city and Red Sea tourism initiatives, could see increased international interest as foreign ownership regulations become more transparent and accessible.

However, there are still questions about the long-term implications of these changes. While the law offers new avenues for foreign investment, there are concerns about the potential impact on local property prices and the availability of affordable housing for Saudi citizens. Critics argue that an influx of foreign capital might inflate property values, making it harder for Saudis to purchase homes. The government is expected to address these concerns through policies that safeguard the interests of the local population, ensuring that housing remains affordable for citizens.

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The government's strategy also includes efforts to ensure that foreign investments contribute to the broader goals of economic diversification. By allowing foreign ownership in select zones, the Kingdom hopes to align property investments with its broader economic objectives, particularly in sectors like tourism, entertainment, and high-tech industries.

For non-Saudis looking to invest, the new law provides a clearer roadmap for property ownership. Investors will need to navigate a system that offers greater transparency and less bureaucratic red tape than previous regulations. While specific details on the process of acquiring property remain to be fully clarified, the law marks a significant shift toward openness, making it more appealing to foreign capital.

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