Saudi Arabia opens property market to foreigners, boosting Talaat Moustafa’s expansion

Saudi Arabia has approved executive regulations allowing foreign ownership of real estate in designated zones, a move expected to accelerate growth in the Kingdom’s property sector and strengthen the regional expansion of Talaat Moustafa Group Holding (TMG).

The Saudi Council of Ministers on June 23, 2026, approved the Executive Regulations of the Law of Real Estate Ownership by Non-Saudis, alongside identifying specific zones where foreign buyers can own property. The decision completes a regulatory framework first introduced in January 2026, marking a major step in opening the Kingdom’s real estate market to international investors.

Impact on Talaat Moustafa’s Saudi footprint
TMG said the new regulations are expected to positively impact its operations in Saudi Arabia, particularly its flagship development, Banan. The project, launched in 2024 in Riyadh’s Al Fursan district, spans approximately 10 square kilometers and includes around 25,000 residential units.

Banan is designed as a fully integrated community, reflecting TMG’s strategy of developing large-scale, mixed-use destinations. The group’s experience in delivering self-sufficient urban communities positions the project to attract foreign buyers seeking high-quality residential offerings in the Kingdom.

The newly approved zones, covering key districts in Riyadh, Jeddah, Makkah, and Madinah, are expected to drive demand for premium housing, creating new opportunities for developers with established regional presence.

Foreign demand to drive next phase of growth
With foreign ownership now permitted in major urban centers, TMG expects rising demand for residential and mixed-use developments aligned with international standards. The company’s brand recognition and track record in large-scale projects are likely to support its positioning in this evolving market.

In addition to Banan, TMG noted that projects under consideration through its memorandum of understanding with Saudi Arabia’s Public Investment Fund (PIF) could also benefit from the regulatory changes. These developments are expected to be located within the newly approved zones, further enhancing their appeal to foreign investors.

As Saudi Arabia continues to liberalize its real estate sector, developers like TMG are poised to play a key role in meeting growing demand, particularly from international buyers seeking exposure to the Kingdom’s rapidly transforming urban landscape.