FROM VISION TO OPPORTUNITY:
A GUIDE TO REAL ESTATE
INVESTING IN SAUDI ARABIA

Report summary

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As Vision 2030 gains momentum, Saudi Arabia is set to become a leader in inbound Foreign Direct Investment (FDI), surpassing recent regional success stories such as
the UAE and Qatar.

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The economic impact of Vision 2030 is already visible, with several targets surpassed. Two sectors poised for significant investment are real estate and construction, which currently contribute around 12% to Saudi GDP.

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Targeted Change

Outsized impact

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Vision 2030 was unveiled in 2016, and the ambitious roadmap is a blueprint for diversifying the economy, empowering citizens, and creating a vibrant environment for all investors. A number of key strategic programs help articulate the vision and have concrete deliverables and plans.

A Fertile Landscape

Drivers beginning to blossom

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While giga-projects consistently make headlines, the global focus on smaller-scale projects remains limited. However, the prevalence of these varied projects equally contributes to the Vision 2030 objectives. There are over 18,000 projects currently underway across The Kingdom, accounting for 35% of the estimated total project values across all of MENA.

The Rise of The GCC

Saudi's role

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The GCC region as a whole presents a multifaceted investment landscape, with Saudi Arabia and the UAE emerging as key drivers of economic growth and diversification.

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Market Specifics

Project level analysis

Touching on every facet of real estate and space use, the 13 “giga-projects” have an estimated total value of approximately US$900 billion. They are key to Saudi Arabia's economic diversification strategy and are the highest profile real estate realization from Vision 2030.

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Avenues to Invest

Multiple points of entry

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Recent reforms have made investments in Tadawul more accessible. Foreign investors must meet the set of criteria described below in order to be eligible for investment. Investors who qualify as either Foreign Strategic Investors or Qualified Foreign Investors are eligible to invest in Tadawul following the new rules issued by the Capital Market Authority (CMA) in March 2023. Investment in the Parallel Market, Nomu, is subject to fewer restrictions and is available to a wider range of investors.

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Until recently, the investment required to fund the giga-projects and mid-tier projects has been sourced from within The Kingdom, primarily through the Vision 2030 initiatives or private capital.