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Can Foreign Companies Now Develop Real Estate in Saudi Arabia

Can Foreign Companies Now Develop Real Estate in Saudi Arabia in 2026?

For years, foreign investors looking to enter Saudi Arabia’s real estate development sector had to meet one key condition. A minimum project value of SAR 30 million.

In 2026, that requirement has been removed. This is a meaningful shift. It is not just a policy update, it changes how international developers can approach the Saudi market altogether. For many mid sized firms that previously found the entry point too restrictive, the market is now far more accessible.

A More Accessible Entry Framework for International Developers

This change marks a structural shift in how foreign investors can access the Saudi real estate market.
Under the previous framework, foreign companies were required to demonstrate a minimum investment threshold of approximately USD 8 million to qualify for real estate development activities. This created a high entry barrier, particularly for firms seeking to enter the market through phased or pilot projects.
As of 2026, foreign investors can now establish real estate development entities without any minimum project value requirement. This introduces significantly greater flexibility, allowing companies to test the market, scale gradually, and adopt diversified investment strategies without substantial upfront commitments.

Simplified Eligibility Criteria Supporting Faster Market Entry

While the capital threshold has been removed, the eligibility framework remains clear, practical, and accessible.
Foreign investors are required to meet one of two conditions. Either the parent company must have been operational for at least one year, or the principal investor must hold Saudi Premium Residency.
Importantly, there is no requirement for mandatory local shareholding in most cases. This enables full foreign ownership across many real estate activities, reducing complexity and accelerating entry timelines for international firms.

Alignment with Saudi Arabia’s Evolving Investment and Ownership Regulations

This reform forms part of a broader transformation in Saudi Arabia’s investment ecosystem.
It aligns with the Law of Real Estate Ownership by Non-Saudis, which permits foreign ownership in designated zones, and complements licensing reforms led by Ministry of Investment Saudi Arabia. Together, these changes are creating a more transparent and structured investment environment.
At a strategic level, these developments support the long-term objectives of Saudi Vision 2030, including urban expansion, infrastructure development, and increased foreign direct investment.

Strong Market Momentum Creating Real Opportunities

This reform comes at the perfect time. Saudi Arabia’s real estate sector is experiencing strong and sustained growth, driven by major giga-projects such as NEOM, Diriyah, Qiddiya, and the Red Sea Project.

Rising foreign investment, population growth, and the Kingdom’s economic diversification efforts are supporting long-term demand across residential, commercial, and hospitality segments. Removing the SAR 30 million minimum threshold now makes it much easier for international developers to participate in this expanding market.

Faster and Simpler Setup Process

Setting up a real estate development company in Saudi Arabia has become noticeably quicker and more straightforward.

The process usually starts with a quick eligibility check, followed by an investment license from the Ministry of Investment (MISA). After that, you complete commercial registration and a few post-setup requirements, including alignment with the Real Estate General Authority (REGA) where needed.

With good preparation, most foreign investors can complete the entire setup in just a few weeks — a clear reflection of the Kingdom’s push to improve ease of doing business.

Greater Flexibility for Smarter Market Entry

The removal of the minimum project value gives foreign developers much more flexibility.

Instead of committing to large projects from day one, you can now start with smaller pilot projects, phased developments, or strategic partnerships with local players. This approach helps you test the market, manage risk, and build local knowledge before scaling up.

This is especially valuable for mid-sized developers who want to enter Saudi Arabia without excessive upfront exposure.

Why Professional Guidance Still Matters

Even with these improvements, successful entry requires careful planning and proper regulatory alignment. Choosing the right activity, structuring ownership correctly, and meeting compliance requirements remain important.

Experienced advisory support can help you navigate these steps smoothly and avoid common pitfalls, ensuring your setup is efficient and fully compliant.

Time to Reassess Your Saudi Strategy?

This 2026 reform offers foreign real estate developers and investors a genuine opportunity to revisit their plans for Saudi Arabia.

Whether you are interested in residential, commercial, hospitality, or mixed-use projects, the market is now more accessible and flexible than before.

We regularly help international clients with eligibility checks, licensing, structuring, and local partnerships. A short, focused conversation can clarify the best approach for your specific goals and timeline.

Saudi Arabia’s real estate sector is moving fast. For those who plan well, early entry can deliver a real competitive advantage.