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Saudi Arabia’s Real Estate Renaissance Policy Reforms and Gl

Published on May 13, 2026

Saudi Arabia’s real estate sector is entering a new era, driven by ambitious reforms, rising investor confidence, and a bold vision for sustainable growth. From expanding homeownership and attracting global partnerships to unlocking opportunities in PropTech, digitisation, and large-scale developments, the Kingdom is rapidly positioning itself as one of the world’s most dynamic real estate markets.

Transforming Saudi Arabia’s Real Estate Ecosystem: Policy Reforms and Global Investor Confidence

Saudi Arabia’s real estate sector is undergoing a remarkable transformation, driven by ambitious targets and a series of groundbreaking policy reforms. With a mandate to achieve 70% homeownership by 2030, the Kingdom is not only reshaping its housing landscape but also positioning itself as a global hub for investment, innovation, and sustainable development.

This article, based on a recent panel session featuring Engineer Loaye Al-Nahedh (CEO, REDF), Mohammad Al-Buty (CEO, NHC), and Brian Higgins (Founder & Managing Partner, King Street Capital Management), explores the key elements driving this transformation, the challenges faced, and the opportunities that lie ahead.

Rising Homeownership and Expanding Market

The real estate sector plays a pivotal role, with a target of 70% homeownership by 2030. This goal is supported by a young and dynamic population—60% of Saudis are under 35—whose evolving needs are reshaping the housing market.

Engineer Loaye Al-Nahedh emphasized the dual impact of demographics and policy reforms, highlighting how this combination drives innovation and demand within the ecosystem:

"This country is fortunate to have a young population. 60% of the population in Saudi Arabia is below the age of 35. They have ever-evolving needs that honestly don't look like the needs or the ones of their parents and grandparents."

The National Housing Company (NHC) has been instrumental in supporting this growth. With a mandate to supply 600,000 homes by 2030, NHC achieved 65% homeownership by the end of 2024, one year ahead of the initial 2025 target, as highlighted by Mohammad Al-Buty, CEO at NHC:

"We achieved, by end of 2024, 65% homeownership, one year ahead of 2025. So we are on the right track."

This milestone underscores the Kingdom’s commitment to addressing citizens’ needs while fostering an inclusive and accessible housing market.

Policy Reforms: Building Investor Confidence

Saudi Arabia has enacted a series of policy reforms to enhance investor confidence and attract foreign direct investment (FDI). Among the most significant is the decision to allow foreigners to own property. Brian Higgins reflected on the broader impact: "A big step is allowing expats, foreigners to invest personally, own property, and also then to create this ecosystem where different products are able to be invested in."

Engineer Loaye described this reform as a “game-changer,” noting that opening ownership to expats introduces new standards and preferences into the local market: "The openness to expats to own real estate and own properties in the Kingdom is most definitely bringing a new demand into our ecosystem with its own standards and wishes and desires."

Al-Buty highlighted the broader restructuring of the real estate ecosystem, emphasizing its focus on demand, supply, and regulation. The shift from government lending to commercial banks providing loans, with subsidies being paid or supported separately, has created a trusted and efficient system for all stakeholders.

Global Partnerships: A Catalyst for Growth

International collaborations are central to Saudi Arabia’s real estate strategy. Developers from the US, Europe, China, Korea, and Turkey are bringing expertise and investments that enrich the local market.

Al-Buty emphasized that partnerships, both local and international, have generated nearly $50 billion in investments, leveraging global knowledge in smart cities, sustainability, and large-scale development:

"We attract local and global partnerships. We have partnerships from all over the world, to date, we have more than $50 billion of investment with international partners, in addition to what we have from local partners."

Engineer Loaye added that this openness ensures a diverse product offering while introducing advanced technology, standards, and best practices:

"Developers from around the world are bringing a different kind of product to this market, enriching the landscape and ensuring that there is a product for everyone that seeks one."

Innovations and Future Opportunities

Innovation is at the heart of Saudi Arabia’s real estate transformation. Digitization, fractional ownership, and tokenization are creating a seamless ecosystem for both local and international buyers, enhancing the customer experience while positioning the Kingdom as a leader in real estate innovation.

Engineer Loaye highlighted the potential of disruptive technologies:

"What His Excellency mentioned today in his opening remarks about fractional ownership and tokenization is extremely exciting. It may be one of those disruptive technologies that actually enhances the overall experience and creates a much more frictionless ecosystem for local owners or buyers as well as international ones."

Future opportunities extend across multiple asset classes, including residential housing, mixed-use developments, schools, malls, and data centers. NHC is actively developing data centers as a major investment line, aiming to attract both local and global investors.

Al-Buty emphasized the opportunity:

"The most attractive investment opportunities for investors are the data centers. At NHC, we started now this business line and we see big opportunities for investors, local and international."

Navigating Challenges and Unlocking Potential

Despite significant progress, challenges such as tight liquidity, rising construction costs, and supply chain disruptions persist. Saudi Arabia’s robust ecosystem, supported by entities like REDF, SRC, and NFSC, is addressing these issues through flexible payment options, innovative financing models, and supply chain initiatives.

Al-Buty noted: "We are offering different payment options to enable demand, such as delaying payments for two to three years. At the same time, we’ve launched supply chain initiatives to ensure materials are delivered on time and within budget, allowing us to hand over units to clients without delays or penalties."

From a global perspective, Mr. Higgins stressed the importance of funding and transparency:

"The Kingdom needs to move quickly to access and establish funding sources. You don’t want to go when there’s less liquidity available to try to establish yourself as a borrower in that market."

Additionally, Higgins discussed the tight liquidity in the banking sector and emphasized the need for securitization to attract international investors. He highlighted the importance of creating a two-way market for mortgage-backed securities, noting that while initial deals might have wider spreads, they would tighten as the market matures, ultimately fostering greater investor confidence and liquidity.

Conclusion: A Global Real Estate Powerhouse

Saudi Arabia’s real estate sector is at a pivotal moment, fueled by innovative policy reforms and strategic global partnerships. The Kingdom’s commitment to a dynamic, sustainable, and market-driven ecosystem is attracting investors worldwide and setting new benchmarks for the industry.

With a clear focus on innovation and robust international collaboration, Saudi Arabia is not only meeting the housing needs of its citizens but also establishing itself as a global real estate powerhouse.

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