+10% Limit-Up: MASAR (4325) Leads Saudi Property Rally as Cabinet Approves Non-Saudi Ownership Zones
MASAR 4325.SA | 0.00 | |
KEC 4310.SA | 0.00 | |
RETAL 4322.SA | 0.00 | |
JABAL OMAR 4250.SA | 0.00 | |
MCDC 4100.SA | 0.00 |
Saudi Arabia's Cabinet approved on June 23, the executive regulations for the law that governs real estate ownership by non-Saudis, together with the geographic zones in which foreign individuals and entities may own property. The session was chaired by Custodian of the Two Holy Mosques King Salman bin Abdulaziz, the Saudi Press Agency (SPA) reported.
The law on real estate ownership and investment by non-Saudis has been in effect since January 22, 2026. Ahead of the approval, the Real Estate General Authority (REGA) had posted the draft regulations on the "Istitlaa" public consultation platform in August 2025 to collect feedback from stakeholders.
The regulations consist of 15 articles. They set out the steps non-Saudi individuals, companies, and non-profit entities must follow to acquire property, the fees that apply when non-Saudis dispose of real estate, and a framework that classifies violations of the law and its regulations.
Market reaction
Umm Al Qura for Development and Construction Co.(4325.SA) told Tadawul that its Masar Destination project in Makkah was included in the areas opened to non-Saudi ownership. The company said the inclusion is likely to widen the pool of eligible investors for the project, but that the financial impact cannot be determined at this stage, and that any material developments will be disclosed later.
Following the announcement, real estate developers led gains on Tadawul. Masar rose by its 10% daily limit to SAR 18.48, and the Real Estate Mgmt & Dev't Index(TRMI.SA) advanced 4.11%, at the time of this reporting. All gainers included:
| Code | Price (SAR) | %Chg | Market Cap (SAR) |
|---|---|---|---|
| Umm Al Qura for Development and Construction Co.(4325.SA) | 18.48 | +10.00% | 26.59B |
| Knowledge Economic City(4310.SA) | 12.92 | +9.77% | 4.38B |
| Retal Urban Development co.(4322.SA) | 12.62 | +5.52% | 6.30B |
| Jabal Omar Development Co.(4250.SA) | 15.36 | +4.92% | 18.13B |
| Makkah Construction and Development Co.(4100.SA) | 91.30 | +3.81% | 18.26B |
| Dar Alarkan Real Estate Development Co.(4300.SA) | 18.07 | +3.43% | 19.52B |
| Saudi Real Estate Co.(4020.SA) | 16.45 | +2.56% | 6.17B |
| Emaar The Economic City(4220.SA) | 10.32 | +2.18% | 9.11B |
| Arriyadh Development Co.(4150.SA) | 18.14 | +1.91% | 4.24B |
| Alramz Real Estate Co.(4327.SA) | 59.20 | +1.81% | 2.54B |
| Sumou Real Estate Co.(4323.SA) | 29.44 | +1.73% | 1.47B |
| Dar Al Majed Real Estate Co.(4326.SA) | 7.34 | +1.38% | 2.20B |
| Alandalus Property Co.(4320.SA) | 14.41 | +1.12% | 1.34B |
| Taiba Investments Co.(4090.SA) | 19.51 | +0.93% | 9.76B |
| Arabian Centres Co.(4321.SA) | 17.19 | +0.64% | 8.16B |
| Banan Real Estate Co.(4324.SA) | 3.05 | +0.33% | 610.00M |
| Red Sea International Co.(4230.SA) | 22.13 | +0.09% | 1.07B |
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Where non-Saudis can own property
REGA detailed the approved zones across the Kingdom:
- Makkah: Abraj Makkah, Al Manar, Burj Ajyad, King Salman Gate, Tilal Village, Jabal Omar, Thakher Makkah, Smou Suburb, Masar, and Makkah Zones 1 and 2.
- Madinah: Gharra, Madinah Zones 1 and 2, Al Mahwa, Darat Al Hijrah, Downtown Madinah, Diyar Al Maqar, Rua Al Madinah, Knowledge Economic City, and Mishraf.
- Riyadh: Qiddiya, New Murabba, Sports Boulevard and Arts District, Diriyah Gate, King Salman Park, Sedra, King Abdullah Financial District (KAFD), King Salman International Airport, and the Transit-Oriented Development project.
- Jeddah: Central Jeddah, plus Development Areas 1 through 55 across Jeddah Governorate.
- AlUla: Areas 1 through 17.
- Giga and major projects: NEOM, AMAALA, and The Red Sea.
- Special economic cities and zones: Jazan Special Economic Zone, Ras Al Khair Special Economic Zone, King Abdullah Economic City Special Economic Zone, and King Abdullah Economic City.
What officials said
Minister of Municipalities and Housing Majed Al-Hogail, who also chairs REGA's board, said the approval completes the legislative framework for the updated ownership system by clarifying where ownership is permitted, the types of real estate rights, ownership percentages, usufruct periods, and the related requirements and procedures. He said the limited geographic zones serve as a regulatory tool to guide real estate growth in line with each city's needs and capacity, while accounting for the special nature of religious and regulated locations, particularly Makkah and Madinah, and preserving their status. He added that the regulations introduce digital channels, integration with the Real Estate Registry, electronic payment methods, and disclosure and compliance mechanisms.
Commerce Minister Majid Al-Qasabi said the new regulations and geographic zones would help attract global talent and encourage companies to expand their operations and strengthen their competitiveness.