Saudi Arabia Launches New Framework for Foreign Real Estate Ownership in Designated Zones via REGA Platform

The Real Estate General Authority in the Kingdom of Saudi Arabia (REGA) announced an updated regulatory framework permitting foreign investors to own real estate within designated geographical zones, according to industry sources, in a step representing a strategic shift in Saudi real estate policy towards opening up to international investment.

According to reports, the new framework specifies the areas where foreigners are entitled to own property, including mega-development zones, special economic zones, and specific projects partnered with government entities, without altering the restrictions imposed on Mecca and Medina, which remain exclusive to Saudi citizens and Muslim residents.

This step comes as part of the Kingdom's efforts to attract foreign direct investment and enhance the competitiveness of the Saudi real estate market regionally and internationally, especially amid rising competition with the UAE, which is considered a leading destination for foreign investors in the real estate sector.

Industry sources expected this framework to lead to a new wave of foreign demand for real estate in projects such as NEOM, Qiddiya, and the Red Sea, which could support prices in these projects and boost liquidity in the real estate development sector in the coming period.

**What do these terms mean?**

**REGA:** The Saudi Real Estate General Authority, the government body tasked with regulating the real estate market and supervising policies and legislation related to property ownership, development, and financing in the Kingdom. **Designated Zones:** Specific geographical areas governed by special legislation granting investment advantages or permitting activities that may be restricted in the rest of the country, such as foreign property ownership or conducting commercial activities under relaxed conditions.