Saudi Arabia’s Red Sea Project has become the first practical platform to test the law opening the real estate market to foreigners, according to Abdullah Al-Ajaji, CEO of Derfan Real Estate. International buyers have already begun closing purchase deals under the new rules, which came into effect this month.
Speaking to Arabian Business, Al-Ajaji noted that there is a clear interest from foreign investors who have begun finalizing their decisions to purchase residential units within the Red Sea Project. This follows the implementation of a unified national framework that allows non-Saudis to own property in specific areas.
The new system, which came into force this month, abolished the restrictive procedures that had been in place since 2000. The law opens the door for foreign individuals and entities to purchase residential, commercial, industrial, and agricultural real estate in areas to be designated by a decision of the Council of Ministers based on recommendations from the General Real Estate Authority.
Although the specific areas have not yet been officially announced, expectations indicate that major state-backed projects such as the Red Sea Project will be among the first locations selected for this purpose.
The Red Sea Project Sets a New Benchmark
The Red Sea Project is considered one of the most prominent and promising mega-projects in the Kingdom of Saudi Arabia and is being developed by Red Sea Global. The project spans an area of nearly 28,000 square kilometers along the Kingdom’s northwestern coast and includes an archipelago of more than 90 islands.
According to Red Sea Global, the project aims to establish 50 resorts by 2030, comprising around 8,000 hotel rooms in addition to more than 1,000 residential units.
The first phase of the project has already begun to bear fruit, with five resorts opening out of the 16 planned for this phase by the end of 2023. These include Six Senses Southern Dunes, The Ritz-Carlton Reserve Nujuma, and Shebara, all of which are developed and operated by Red Sea Global.
The project is set to witness the opening of more resorts on Shura Island, the project’s main hub, through 2025. Several key infrastructure components have already become operational, including Red Sea International Airport and Shura Links, the Kingdom’s first island golf course.
