S&P Global Ratings has revealed that Saudi Arabia’s REIT sector is entering a transformative phase, driven by strategic regulatory updates and broader economic diversification plans. Currently comprising 19 listed trusts valued at approximately US$4 billion, the market is expected to rapidly expand.
Key reforms implemented by the Capital Market Authority in July 2025 include:
- Allowing Nomu-listed REITs to invest in property development projects
- Strengthening disclosure requirements
- Tightening oversight of fund managers
The most significant change coincides with a new foreign ownership law taking effect in January 2026, which will permit non-GCC nationals to buy property across most regions for the first time.
S&P highlighted the continued role of Vision 2030 giga-projects like NEOM, Qiddiya, Diriyah, and The Red Sea as key drivers of long-term demand. “We expect these projects to sustain strong demand for both residential and commercial property,” the report stated.
Short-term challenges include a five-year rent freeze in Riyadh, which may stabilize or soften rental yields. However, the agency remains optimistic about the sector’s potential, noting that “the continued development of new products, such as development REITs, could transform the Saudi market over the next few years.”
