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The Saudi Central Bank (SAMA) has mandated banks to open accounts for foreign individuals and entities purchasing real estate in Saudi Arabia under the Foreign Real Estate Ownership Law. Key requirements include biometric verification, digital identity documents, and Saudi-registered mobile numbers for individuals. Legal entities must submit registration certificates, ownership details, and contracts with licensed real estate brokers. The rules aim to streamline foreign investment in the real estate sector while ensuring compliance with local regulations.
This regulatory update impacts Saudi Arabia's real estate market by formalizing procedures for foreign investors, potentially boosting transparency and attracting more international capital. Traders and investors should monitor how these rules affect property transaction volumes and banking sector activity. The move aligns with Saudi Arabia's Vision 2030 to diversify its economy through foreign investment.
For Gulf investors, the new framework may increase confidence in Saudi real estate as a stable asset class. Traders should watch for data on foreign ownership trends and any subsequent policy adjustments. The banking sector could see increased demand for compliance-related services, influencing stock performance of major Saudi banks.
