Private investors to drive Saudi real estate forward
12 January 2026
Commentary
Colin Foreman
Editor
Read the January issue of MEED Business Review
As the outlook for Saudi Arabia’s gigaprojects weakened throughout 2025, attention shifted increasingly towards how projects in the kingdom should be delivered in the future.
Changes to legislation on foreign ownership of real estate, the introduction of a white land tax, rental freezes and mortgage-backed securities aim to help the real estate sector evolve into a more diversified industry – one that, as Dubai has shown, can attract significant foreign investment.
If these reforms succeed, private sector real estate investors will play a more active role in delivering projects in Saudi Arabia, with implications for the construction sector and the nature of projects in the future.
Unlike government or sovereign wealth fund investors that have economic, social and financial returns factored into their development plans, private sector developers are motivated almost entirely by financial returns, which means if they do move ahead with projects, they will have goals and designs that are more similar to those found in other markets.
For contractors, this shift means buildings will be more uniform and buildable, rather than the daring structures launched in recent years. Clear funding lines should improve certainty, allowing projects to proceed once developers have completed proper planning.
There will be a trade-off. With risk and complexity reduced, it will become more difficult for contractors to differentiate themselves from the competition.
The normalisation of the market will mean that the pressures around resources and buildability that have preoccupied the Saudi market in recent years should subside.
READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF
Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds
Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:
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> AGENDA: Saudi real estate to surge in 2026
> BATTERIES: Batteries shape the region's energy future
> INTERVIEW: Tabreed finishes the year on a high
> CONTRACTORS: Managing risk in the GCC construction market
> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
> AIRSHOW: Top deals signed at Dubai Airshow 2025
> MARKET FOCUS: Oman steadies growth with strategic restraint
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