Foreigners to own property for the first time in Saudi Arabia

Published 04th Jun 2010

Saudi Arabia is to allow foreigners to own property for the first time as seeks new sources of investment in the kingdom, Bloomberg reported today.

King Abdullah Economic City, one of four metropolitan areas under construction in Saudi Arabia, will be the first place where foreigners are allowed to own property.

The city, being built by government-controlled Emaar Economic City, will be completed in 2025, is costing $27bn and will cover an area the size of Brussels.

“This is the first freehold city in Saudi Arabia,” Fahd Al-Rasheed, Emaar Economic City’s chief executive officer, said in an interview. “A lot of people want to invest in the Saudi market and see it as a frontier for real estate investment because of the population explosion here.”

Near Jeddah, the city is designed to house 2 million people and generate 1 million jobs.

It is part of a $400bn plan announced by the Saudi government in 2008 to invest in the country’s infrastructure and make it less dependant on oil.

The other three cities under construction are Knowledge Economic City in Medina, Jazan Economic City in Jazan and Prince Abdul Aziz bin Mousaed Economic city in Hail. Two more economic cities are planned in Tabuk and the Eastern Province.

Source: ' Property Week '

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