The extensiveness and strength of Saudi Arabia’s property market has cemented it as a hub for real estate investment among both local and international investors. Recently, the local sector has seen consistent growth and a steady stream of new projects being developed.
Further expansions are expected throughout the years, especially as the nation continues working towards the Saudi Vision 2030. Add this to the steadfast support of Saudi Arabia’s government and the increasing market demand for residential and commercial properties, creating an industry that’s built to last.
Affordable housing is a prime focal point of the government, and several initiatives have already been launched to support the housing storage. One of these is Sakani, a plan under Saudi Vision 2030 that aims to house over one million families by the end of the decade.
Just like the residential sector, Vision 2030 also empowers the development of commercial real estate. The largest spike seems to be with office spaces, as more businesses are establishing hubs in Saudi Arabia. Similarly, retail establishments are also experiencing growth in terms of demand and development.
From decreasing the minimum mortgage downpayment to launching multiple mortgage products, the Saudi Arabian Monetary Authority has been committed to enabling the progress of real estate financing in the Kingdom.
Like its neighbors, Saudi Arabia is a well-known tourist destination. To boost its status even further, the Saudi Vision 2030 puts forth plans to improve the hospitality and leisure sectors through new developments and government projects. For example, Qiddiya and the Red Sea Project are just some initiatives with the goal of launching more tourist spots. In general, Saudi Arabia’s real estate industry is in for a bright future. Those looking to enter the real estate market would be smart to consider investing in the Kingdom.
Real estate licenses are given to non-local companies in the property industry if:
• The total cost of the project, including
land and construction, amounts to at
least SAR 30 million.
• The investment is established outside
Mecca and Medina.
Interested investors must provide the following:
a) A copy of the shareholding partner’s commercial registration, certified by the Saudi Embassy.
b) A copy of the national identity, if one of the partners is a natural person holding the nationality of a GCC country (in case his data is not registered in the ABSHAR system).2
Foreign company applicants must also submit its financial statements for the last financial year, certified by the Saudi Embassy.
The total percentage of the Saudi shareholder(s) and the capital per the financial limits stated for the type of activity must be consistent.2
Premium residence holders will be exempted from submitting the above documents.3
If one partner was previously licensed by the Ministry of Investment, this should be mentioned in the partner’s data when filling out the electronic application.4
When accomplishing the electronic application, the applicant must enter the data of the Saudi national identity / Premium residence/residence if one of the partners holds any of them or the commercial registration data for the participating Saudi companies.5
If the licensed business is related to property investment projects, the amount of the project to be constructed should be at least SAR 30 million for land and buildings. It must also be outside Mecca and Medina.
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