Saudi Real Estate Sector Posts Strong Gains Up to 9.72% Following Implementation of Foreign Ownership Law

Riyadh – EcoPulse24

The real estate management and development sector in Saudi Arabia delivered an exceptional performance during Sunday’s trading session, with property company shares posting strong gains ranging from 7% to 9.7%. These increases came on the first trading day following the implementation of the new law allowing foreigners to own real estate, which came into effect last Thursday.

Leading the gains was Makkah Construction and Development (4100), which surged 9.72% to close at SAR 87.50, up from a previous close of SAR 79.75. The stock traded in a wide range between SAR 79.95 and SAR 87.70, with a trading volume of 550,809 shares across 2,262 transactions, totaling over SAR 46.9 million.

The Saudi Real Estate Company (4020) followed with a strong 7.99% gain, closing at SAR 14.60 versus a previous close of SAR 13.52. The stock reached a session high of SAR 14.87, with an active trading volume of 5.34 million shares across 7,687 transactions and a trading value of SAR 76.8 million, making it the most liquid in the sector.

The positive trend extended across most real estate stocks:
- Al-Tameer (4150): up 9.66% to SAR 87.45, with a trading value of SAR 2.25 million
- Retal (4322): up 1.71% to SAR 12.46, with SAR 1.18 million traded
- Al Majdiah (4326): up 2.32% to SAR 18.96, with strong trades totaling SAR 6.56 million
- Knowledge City (4310): up 8.44% to SAR 19.02
- Jabal Omar (4250): up 1.56% to SAR 29.92, with SAR 3.14 million traded

This robust performance followed the recent regulatory amendments facilitating foreign real estate ownership in Saudi Arabia, intended to attract more foreign investment to the sector, especially in major cities and development projects.

The sector saw notable trading activity, with the total value of trades in key companies exceeding SAR 150 million in a single session. The average trade size was 695 shares for Saudi Real Estate Company and 244 shares for Makkah Construction, indicating broad participation by both individual and institutional investors.

Analysts anticipate that the positive momentum will continue as the law is further implemented and details become clearer for foreign investors. The market is awaiting additional data on actual foreign demand in the coming weeks.

These developments align with Saudi Arabia’s Vision 2030, which seeks to diversify the economy and attract direct foreign investment, with expectations for sustainable growth in the real estate sector fueled by major development projects across the kingdom.

Note: The data and prices in this report are sourced from the Saudi Stock Exchange (Tadawul) and are delayed according to trading system regulations. Investors are advised to check real-time prices before making investment decisions.