Arada Saudi to court foreign buyers under new ownership zones

Key Points

1. Arada Saudi will build projects inside zones where non-Saudis can legally own property, its chairman said.
2. Saudi Arabia's updated foreign ownership framework took effect in 2026, with special arrangements for Riyadh, Jeddah, Mecca and Medina.
3. The strategy opens a second demand pool beyond Saudi citizens for a developer holding 50 billion riyals of land.

The latest:

Arada Saudi plans to site its upcoming developments inside the geographic zones that permit non-Saudi ownership, targeting foreign buyers alongside citizens, chairman Mohammed Al-Dhabaan told Asharq Bloomberg. The company’s first project lands in Riyadh in 2027 on slightly more than 2 million square meters. Al-Dhabaan said the approach adds a demand segment rather than replacing the domestic one.

Details:

• The regulation: Saudi Arabia’s updated system allows non-Saudis to own property or acquire real rights over it within defined geographic zones and controls, according to Al-Dhabaan’s account of the framework that entered force in 2026. Riyadh, Jeddah, Mecca and Medina fall under special arrangements distinct from the general rules.
• First project: The debut development is planned for Riyadh during 2027 on land exceeding 2 million square meters, Al-Dhabaan said. The company intends to expand afterwards to Jeddah, Mecca and Medina, under a strategy he described as building integrated residential communities rather than selling plots of land.
• Still early: Al-Dhabaan said the Riyadh project remains at an early stage of design. It will be executed through a real estate fund set up with a financial firm, and the company has not yet named the partner, disclosed the fund’s size, or published its sales models.
• The structure: Arada Saudi intends to structure every development inside its own dedicated real estate fund, working with financial companies on each one, according to Al-Dhabaan. The model keeps individual projects financially ring-fenced rather than consolidated on a single balance sheet.
• The land bank: The company was launched as a strategic partnership between the UAE’s Arada and local firm Extopia, giving it access to a land portfolio of roughly 10 million square meters across the kingdom, valued at about 50 billion riyals, according to the company’s own announcement.
• Rammal plan: Arada has identified its first project as an integrated residential master plan in the Rammal district of northeastern Riyadh, carrying a value of 14 billion riyals. No construction timeline or delivery date for the Rammal scheme has been published.
• Buyer shift: Al-Dhabaan argued Saudi buyer expectations have changed from earlier stages of the market’s development, saying housing alone is no longer sufficient and purchasers now weigh the character of the neighborhood, services, amenities and green space before committing.
• No IPO: Al-Dhabaan ruled out any near-term share sale, calling the discussion premature because the company needs years to complete and open its projects. Any future listing decision would rest with parent company Arada and its shareholders, not the Saudi unit alone.

Background:

Arada Saudi was created through a partnership between Emirati developer Arada and Saudi firm Extopia. Saudi authorities approved the executive regulations and geographic zones governing foreign property ownership ahead of the framework’s entry into force in 2026.

Between the lines:

The zoning strategy and the fund structure point the same direction: Arada Saudi is positioning each project as a separately financed asset aimed at two buyer pools at once. With 50 billion riyals of land and a 14 billion riyal opening scheme, the capital requirement is substantial, and Al-Dhabaan’s rejection of an IPO leaves project-level funds carrying that weight for now.

What’s next

Watch for the announcement of the real estate fund backing the Riyadh project, the identity of the financial partner, and the sales models Arada Saudi adopts for non-Saudi buyers before the 2027 launch.