February 10, 2025

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Impact Of Vision 2030 On Real Estate Investment – Real Estate – Real Estate and Construction

Impact Of Vision 2030 On Real Estate Investment – Real Estate – Real Estate and Construction


Hamad in association with Youssry Saleh & Partners




Impact Of Vision 2030 On Real Estate Investment – Real Estate – Real Estate and Construction


Hamad in Association with Youssry Saleh & Partners is a large proficient law firm with over 40 years of experience in the Egyptian and Saudi Arabian markets. The firm brings together the expertise and resources of 2 prominent firms solidifying their position as a leading legal provider in the Kingdom of Saudi Arabia.



In 2016, the Kingdom of Saudi Arabia unveiled its ambitious “Vision 2030” plan, a far-reaching economic and social reform program aimed at reducing the country’s dependence on oil, diversifying its economy, and modernizing various sectors.


Saudi Arabia
Real Estate and Construction


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In 2016, the Kingdom of Saudi Arabia unveiled its ambitious
“Vision 2030” plan, a far-reaching economic and social
reform program aimed at reducing the country’s dependence on
oil, diversifying its economy, and modernizing various sectors. As
one of the key focus areas, the real estate industry has been
significantly impacted by the implementation of Vision 2030. This
article will explore the ways in which this transformative plan has
influenced real estate investment in the Kingdom of Saudi
Arabia.

The impact of the Saudi Vision 2030 plan on the real estate
industry is already being felt in Saudi Arabia. The plan has
announced several major real estate and infrastructure projects
totaling nearly $1 trillion since 2016. These projects are expected
to drive growth in the industry and create new chances for
developers, investors, and other stakeholders. Overall, the Saudi
Vision 2030 plan is set to transform the real estate industry in
Saudi Arabia, creating a more dynamic and diversified market that
can support the country’s long-term economic growth.

Economic diversification Vision 2030

A central tenet of Vision 2030 is the diversification of Saudi
Arabia’s economy away from its traditional reliance on oil
exports. This shift has had a direct impact on the real estate
sector, as the government has sought to invest in and develop
non-oil industries, such as tourism, entertainment, and
technology.

The plan also emphasizes the importance of urbanization, with a
focus on developing megacities and smart cities across the country.
This has led to increased investment in residential, commercial,
and infrastructure projects, as the government aims to accommodate
a growing population and attract foreign talent and businesses.

To facilitate these economic and urban transformations, the
Saudi government has introduced a series of regulatory reforms that
have significantly impacted the real estate industry and it
includes establishing Law No. 308 of the Year 1437
“Approval of Kingdom Saudi Vision 2030” .

Moreover, Vision 2030 has opened up the Saudi
real estate market to foreign investors, allowing them to own
property and participate in development projects.

One of the key reforms under Vision 2030 was the relaxation of
laws governing foreign ownership of real estate in Saudi
Arabia.

Prior to the plan, foreign investors faced strict limitations on
their ability to own property in the Kingdom. However, Vision 2030
has opened up the real estate market to greater foreign
participation.

Now, foreign investors can fully own real estate projects,
including residential, commercial, and industrial properties,
without the need for a local partner.

Increased Foreign Investment Inflows, The more favorable
regulatory environment has attracted a surge of foreign capital
into the Saudi real estate market.

According to industry reports, foreign investment in Saudi real
estate has increased by over 50% since the launch of Vision 2030 in
2016.

Investors from countries like the United States, United Kingdom,
China, and other Gulf Cooperation Council (GCC) nations have all
ramped up their real estate activities in the Kingdom.

Further, Establishment of Real Estate
Regulatory Authorities: New regulatory bodies, such as the
Real Estate General Authority, have been created
according to the Law No.239 of the Year 1438 to
oversee and guide the development of the real estate sector.

In addition to the broader economic and
regulatory changes, Vision 2030 has also introduced sector-specific
initiatives that have influenced real estate investment:

Housing Program: The government has launched
ambitious housing programs, including the goal of increasing home
ownership rates from 47% to 70 % by 2030 and reducing loan-waiting
time from 15 years to five years, in the context of a dramatically
increasing population This has spurred investment in residential
projects, particularly affordable and middle-income housing. The
most important change that has been made regarding this is moving
from a model of direct lending to one of indirect lending .This
process has enabled the subsidization of more loans and the
empowerment of new generations and underserved borrowers, with an
impact on broader GDP

Tourism Development: The plan’s focus on
developing the tourism industry has led to increased investment in
hospitality-related real estate, such as hotels, resorts, and
entertainment complexes, investment in state-owned real estate
assets in strategic locations,, and vital locations in cities will
be allocated for educational facilities, markets and entertainment
centers. Large areas on our beaches will be allocated for tourism
projects, and suitable lands will be allocated for industrial
projects.

Megacity Development: The creation of
futuristic megacities, such as NEOM and the Red Sea Project, has
generated significant interest and investment in large-scale,
mixed-use real estate developments.

In conclusion, Saudi Arabia’s Vision 2030 plan has
significantly transformed the country’s real estate industry.
By focusing on economic diversification, urbanization, and opening
up the market to foreign investment, the plan has created
substantial opportunities for real estate stakeholders.

Key impacts include a surge in foreign capital, the
establishment of new regulatory bodies, and the launch of
initiatives targeting sectors like housing and tourism. The
development of ambitious megacity projects has also generated
substantial interest and investment in large-scale, mixed-use real
estate.

Overall, the sweeping changes from Vision 2030 have positioned
the Saudi real estate market for greater dynamism and
diversification, enabling it to support the country’s long-term
economic growth objectives. The real estate industry will be
central to realizing the plan’s ambitious goals in the years
ahead.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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