In 2023, over 60% of residential property sales in Riyadh were off-plan, despite the risks associated with under-construction investments. In this blog, we unpack Saudi Arabia’s latest regulatory overhaul of off-plan property sales and what it means for foreign businesses eyeing the Kingdom’s booming real estate sector.
With 15+ years of in-market expertise and clients like Amazon and Best Western, Peninsula is uniquely positioned to decode what’s changing, and why it matters. Discover how Saudi Arabia is using regulation to de-risk investment and open the real estate market to serious international players.
Until recently, Saudi Arabia’s property market was seen as a challenging environment, opaque, unregulated, and difficult for foreign entities to navigate. Off-plan property sales were especially problematic, with frequent delivery delays, minimal oversight, and few investor protections.
But since the introduction of Vision 2030, regulation has shifted from passive to proactive. The most recent milestone? A bold new set of guidelines for off-plan property transactions, introduced by the Real Estate General Authority (REGA) in early 2024.
The updated framework sets clear rules to protect buyers and professionalise developers. Key changes include:
Why it matters: These changes don’t just protect local buyers—they offer foreign investors a rare combination of growth potential and legal security.
The new guidelines aren’t happening in isolation. They’re part of a broader narrative that’s seen Saudi Arabia progressively modernise its real estate sector:
Each step aligns directly with the Saudi Vision 2030 ambition to diversify the economy, attract international capital, and enhance urban development.
For business leaders evaluating Business Setup in Saudi Arabia, the evolving real estate environment offers an accessible and high-upside entry point. Whether you're a property developer, fund manager, design-build firm, or service provider, the barriers to entry are now structured rather than obstructive.
Peninsula’s clients, including multinationals and agile SMEs, are leveraging real estate not just for investment, but as a base for broader regional expansion.
Here’s why:
Take DAMAC Properties, a Dubai-based real estate giant that entered the Saudi market with Wafi-compliant projects in 2023. Leveraging the regulatory clarity, DAMAC completed its first residential towers in Riyadh six months ahead of schedule. The same opportunity is available to any global firm with the right partners on the ground.
The off-plan guidelines are a visible sign of Saudi Arabia’s transformation. It’s no longer just open to foreign investors, it’s actively de-risking the path for them. At Peninsula, we ensure our clients don’t just enter the market, but thrive within it.
The changing face of Saudi Arabia’s real estate market represents not just an opportunity, but a strategic gateway into the region’s most ambitious economy.
Book a free consultation and discover how we can streamline your entry into Saudi Arabia’s evolving business landscape.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
