Saudi Arabia Property Investment
Saudi Arabia Property Investment is getting more attention. As Saudi Arabia attracts more international investment, the property sector is becoming increasingly important. Related industries like construction and building materials are also growing. Real estate investment in Saudi Arabia is a promising opportunity for investors. The country has a growing economy and a stable political atmosphere, making it an attractive area for real estate investment. With the expanding real estate market, foreign investors must understand their legal rights and obligations.
Land ownership in Saudi Arabia has a rich historical context influenced by various factors such as Sharia, Royal Decrees, and legal residency status. In general, the regulations in the Kingdom clarify the terms of property ownership and investment for non-Saudis, along with the permits and documents that must be submitted to complete transactions.
Saudi property transfer regulations have also ensured that these transactions, for both Saudis and non-Saudis, take place in a modern and technologically advanced way, thus saving time without sacrificing quality or efficiency.
Foreign investors who wish to own land in Saudi Arabia must adhere to certain regulations and obtain the necessary licenses Non-Saudis can own property for private residence under the Real Estate Ownership Law. However, this requires approval from the Ministry of Interior. The following subsections provide more information on the regulations for foreign investors.
Who can own a Property in Saudi Arabia?
Premium Residency and Saudi Arabia Property Investment
The Premium Residency Center was founded in January 2019, per the Council of Ministers’ resolution, to draw in highly skilled individuals and investors to contribute to Saudi progress by offering them flexible options for housing, settlement, and work. The center’s mission is to cater to the needs of the premium residency holders and focus on retaining them while continuously striving to develop premium residency products that attract distinguished individuals and encourage more investments in Saudi.
General Benefits of the Premium Residency
- Reside in Saudi with family members, including parents, spouses, and children under 25.
- Flexibility to move from one establishment to another.
- Exemption from the fees imposed on expats and their dependents and companions.
- Exit and return to Saudi for the premium residency holder and their family members without requiring a visa.
- The entitlement to obtain visit visas for relatives.
- Use tracks dedicated to citizens and GCC nationals at airports.
- The entitlement to work in the private sector and move between establishments applies to the husband, wife, and dependents.
- Conducting business under the guidelines of The Investment Law.
- Own and Usufruct real estate.
Special Economic Zones
A Special Economic Zone is a geographically delimited area that facilitates specific economic activities. It provides competitive advantages and legislative frameworks that differ from the base economy, while complying with the Kingdom’s obligations under international treaties.
Saudi Arabia is taking a bold step forward in its pursuit of becoming a global investment destination with the announcement of the establishment of four new special economic zones (SEZs) in 2023. The SEZs will be located in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City.
Property Lease in Holy Sites: Makkah and Madinah
Additionally, the law prohibits private establishments that have signed a privatization contract from transferring or assigning their partnership contract to another party without written approval from the executive authority. Subcontracting for certain aspects of the public-private partnership (PPP) project is allowed, as long as the obligations of the main contract are upheld. Importantly, private sector activities under the contract are not classified as monopolistic, even if they restrict competition, as long as they fulfill the terms of the agreement.
Historically, non-Saudis could not own real estate in Makkah and Madinah, and leases were limited to six years. However, since late 2019, Premium Residency holders can lease household property in these cities for up to 99 years, marking a significant shift in property laws.
Saudi Arabia Property Investment
The Real Estate General Authority
The Real Estate General Authority was established by Council of Ministers Decision No. 239 on 25/4/1438. Its main goals are to increase transparency, promote investment, and ensure consumer protection in the real estate industry.
To boost transparency, the Authority has developed price indicators for both selling and rental markets. It has also introduced indicators for monitoring construction progress. Additionally, the Authority is working on improving regulations to reduce property disputes and shorten processing times.
In its efforts to attract investment, the Authority has conducted local and international comparisons. It aims to implement best practices from countries like Australia, the United States, Hong Kong, Singapore, and the UAE. Moreover, the Authority plans to organize training programs and accredited courses to enhance skills and improve the quality of real estate stakeholders.
Conclusion
The purpose of this article was to provide developers, investors and other stakeholders with an overview of the main laws and regulations affecting the real estate practice in the Kingdom of Saudi Arabia, as well as the practical issues to consider. Overall, the regulations for foreign land ownership in Saudi Arabia are complex and subject to change. Foreign investors should consult with legal experts and obtain the necessary licenses and approvals before investing in real estate in the Kingdom.
Investment Opportunities in Iraq
Iraq aims to boost the country’s economic performance through enhancing political stability and security, building and improving infrastructure, promoting investment in non-oil sectors.
Real Estate Market in Iraq
Iraq is ranked fourth among 14 countries in the Arab real estate market for 2024. The growth in the real estate market is driven by increased foreign investment and a growing population.
Digital Banking in Iraq and Investment Opportunities
Digital banking in Iraq will alter the behavior of both companies and consumers holistically. In Iraq, digital banking has transformed the way things are done.