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Saudi Arabia's Cabinet, led by King Salman bin Abdulaziz, approved executive regulations governing non-Saudi ownership of real estate on June 23. Commerce Minister Majid Al-Qasabi highlighted that these rules aim to attract global talent and create a competitive environment for businesses to expand. The regulations define geographical zones and frameworks for foreign ownership, signaling a strategic shift to diversify the economy beyond oil.
This policy change is expected to boost foreign direct investment (FDI) and enhance Saudi Arabia's appeal as a business hub. For traders, the move could increase demand for real estate assets in the kingdom, potentially driving up property prices and related sectors like construction and finance. The reforms align with Vision 2030 goals to liberalize the economy and reduce reliance on hydrocarbons.
Long-term implications include a more dynamic real estate market and improved investor confidence. Traders should monitor FDI inflows and property price trends in major cities like Riyadh and Jeddah. The success of these regulations will depend on implementation clarity and global investor response.
