Can Saudi Property Laws Lure Corporate Talent Away From Dubai?

**Tim Elliott** (0:00)
It's the Morning Drive Real Estate. This year, Saudi Arabia made one of the most significant shifts in its real estate policy in decades. They've opened up freehold ownership to foreign nationals in very specific areas, but it has been opened up. So what does that mean for investors, for Expatrius, and as well for where we sit here in the UAE's real estate market, the regional real estate market? Ajay Menon is the CEO of Luxe Vista Real Estate, back with us on the program. Nice to see you.

**Ajay Menon** (0:33)
Likewise, Tim. Good morning, guys.

**Tim Elliott** (0:34)
Good to have you here. So let's start with the headline here. Saudi Arabia's law of real estate ownership by non-Saudis came into force January 2026 How significant a moment was that?

**Ajay Menon** (0:48)
It is a landmark defining moment, I would say. Major change. It's a big reform.

**Tim Elliott** (0:55)
It is, yeah.

**Ajay Menon** (0:56)
Will that impact UAE?
The short answer is yes. Yeah. But not now, but eventually.

**Tim Elliott** (1:06)
Yeah. I mean, there are many different ways to look at it. We'll look at the different ways that you can view this.
But what's actually changed on the ground in Saudi Arabia? What can a foreign national now do that they couldn't before?

**Ajay Menon** (1:21)
Now they could actually have freehold ownership of properties, residential, what not, and in certain designated areas under a regulated framework. It's still not a nationwide policy. You cannot just go and invest everywhere.

**Tim Elliott** (1:36)
Yeah. Okay. So simply. So the question that everyone's asked, you've kind of answered it, but there's a lot more to it.
Should, I mean, we're in Dubai, so should Dubai be worried about the other markets across the Middle East? Should we be worried when we've got our own supply pressures building, large volumes of new stock obviously coming to market through 2027 in particular? Does Saudi opening up like this arrive at a vulnerable moment for the UAE? We're going to see prices drop or demand shift?

**Ajay Menon** (2:09)
Now, let us understand why this happened, because obviously Saudi has been looking at UAE very closely, and they would definitely like to copy our model. And perhaps that is the only logical explanation of why he would open up this particular concept in Saudi as well.
So which means he is playing catch up with UAE.

**Tim Elliott** (2:30)
Well, you would think so. I mean, the UAE is over 20 year head start.

**Ajay Menon** (2:34)
Exactly. So that is our massive advantage over Saudi. And we are also not sitting quiet.
And Saudi is also progressing. We are progressing even at a much better pace.

**Tim Elliott** (2:45)
Yeah, well, momentum is there, isn't it? That's the thing.

**Ajay Menon** (2:47)
And we also have this 20 years head start.
But what 20 years head start gives you is a whole set of other things. So will it impact the prices in UAE? Eventually, not now, but maybe in the future. But we should be ready for that. There will be a bit of capital flowing into Saudi on a later date.

**Tim Elliott** (3:09)
Okay.

**Ajay Menon** (3:10)
I can split that into two, short term and long term.

**Tim Elliott** (3:14)
Well, I was going to ask you that. Let's look at the structural kind of advantages, if you like. How does Dubai have the rear de jeter? It just doesn't have at the moment. And it can't be replicated overnight, can it?

**Ajay Menon** (3:24)
No, seriously, simply not. It's not possible. That 20-year head start gives you a lot of structural advantages. One is the investor confidence in Dubai. It's a proven market. Legal frameworks are transparent. High rental yields, ease of exit, liquidity.
The family is living here. There's a lot of jobs here.
Established communities. So this will continue. UAE will continue getting investments.

**Tim Elliott** (3:57)
Is this the global name as well, isn't it?

**Ajay Menon** (3:59)
It's already got a global name. There's a lot of companies that are working in the corporate sector. Pretty much regional headquarters are in Dubai, or the UAE for that matter. So there's ADGM and there is DFM. So there's a lot of things happening here.

**Tim Elliott** (4:13)
Okay. So let me ask you this. Paint me a picture, Ajay.
The type of investor attracted to Saudi, who is the Saudi real estate buyer? And are they different from the Dubai buyer?

**Ajay Menon** (4:32)
Very, very different, because their risk appetite must be extremely high.

**Tim Elliott** (4:37)
Right, okay.

**Ajay Menon** (4:37)
Because obviously, the higher risk, higher reward.

**Tim Elliott** (4:42)