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Saudi Arabia has begun implementing new laws allowing foreigners to own a wider range of local real estate assets. The move came after regulators announced on January 22 that foreigners can now apply to own property not only in Riyadh and Jeddah, but also in Mecca and Madinah, where ownership had largely been restricted. The new framework allows non-Saudis to own residential, commercial, agricultural and industrial properties, as well as land. The reform is part of a broader effort to attract foreign investment and diversify the economy away from oil. Separately, Saudi Arabia is also set to fully open its equity market to all foreign investors from February 1. As a result, Saudi’s real estate index (The Tadawul Real Estate Management & Development Index) jumped 4.5%, with all 17 constituents rising. Makkah Construction & Development Co. led with gains of about 10%, followed by Dar Al Arkan Real Estate rallying by over 8%.
However, dollar bonds Saudi real estate companies traded stable. For instance, Dar Al-Arkan’s 7.25% 2030s traded at 102.3, yielding 6.65%.
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