Saudi Arabia’s real estate push gains new Islamic entrant

Saudi Arabia’s decision to loosen restrictions on foreign property ownership is beginning to reshape how international capital accesses the Kingdom’s real estate market, with digital platforms positioning themselves as intermediaries between global investors and Shariah compliant assets.

AmanaVest is the latest in a string of Shariah compliant platforms targeting Saudi Arabia’s burgeoning real estate sector. It provides structured access enabling informed participants to engage directly with opportunities while conducting their own independent due diligence.

To date, there are approximately 10 licensed proptech companies in the Kingdom, according to IFN Islamic Fintech Landscape.

“The announcement of the invitation-only beta launch of AmanaVest is in direct response to the Saudi foreign property ownership regulations issued this month,” noted ShaikhTech, the company behind the platform.

The firm is referring to the landmark Law of Real Estate Ownership by Non-Saudis which came into effect in January this year. The move, one of the most significant liberalizations of the Saudi property market in decades, allows foreigners to buy residential, commercial and industrial properties in designated zones, including Mecca and Medina via funds.

"Saudi Arabia is entering a historic new chapter as its real estate market opens to the world," said Zeeshan Shaikh, CEO of ShaikhTech. "This is a generational opportunity to connect global capital with one of the world's most dynamic development stories.”

The Kingdom is indeed going through a real estate boom, buoyed by its ambitious Vision 2030 which has mobilized initiatives, regulatory reforms and massive housing programs to increase homeownership, attract foreign investment and drive economic diversification.

The goal is to raise homeownership to 70% by 2030 by delivering 300,000 units annually via public-private partnerships. Riyadh alone is forecast to require more than 305,000 additional homes by 2034, with residential prices up 82% since 2019, according to Knight Frank. Meanwhile, giga-projects like NEOM, Qiddiya and Red Sea are fueling urban demand though questions remain around absorption rates, pricing sustainability and long-term returns.

As foreign capital begins to test the Kingdom’s newly opened property market, the effectiveness of proptech platforms - and the robustness of the regulatory framework supporting them - will play a central role in determining whether Saudi real estate can attract sustained, long-term investment rather than short-term inflows.