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Foreign property ownership in Saudi will have little impact

Shane McGinley Arabian Business
MARKET IMPACT: Moves to allow foreign residents to own properties in Saudi Arabia will have little impact on the kingdom’s fledgling real estate market, a Saudi-based economist said

MARKET IMPACT: Moves to allow foreign residents to own properties in Saudi Arabia will have little impact on the kingdom’s fledgling real estate market, a Saudi-based economist said


Moves to allow foreign residents to own properties in Saudi Arabia will have little impact on the kingdom’s fledgling real estate market, a Saudi-based economist said on Monday.



The Shura Council on Sunday said it would allow non-Saudi’s living in the country to own real estate, the latest in a series of moves aimed at reviving the kingdom’s static property market.

However, poor access to mortgages meant the ruling – which must be approved by the Saudi Cabinet - is unlikely to prompt an increase in sales, said John Sfakianakis, chief economist of Banque Saudi Fransi.

“I don't think that it will have much of an impact as most expatriates working in Saudi are low-skilled, low-paid workers and their incomes won't permit them to acquire property in Saudi Arabia,” he said.


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