In a landmark move set to transform its property market, Saudi Arabia has given the green light for foreign and non-resident investment in real estate through fractional ownership. Spearheading this initiative is Riyadh-based startup Ghaneem, which has received its license from the Real Estate General Authority (Rega) to offer the innovative service.
The development aligns with the Kingdom’s broader strategy to attract significant foreign investment and reduce reliance on public spending as part of its economic diversification goals. It comes just days after Saudi Arabia officially introduced new real estate ownership regulations for overseas buyers.
Fractional Ownership for Global Investors
Ghaneem is democratizing access to the Saudi property market by allowing individuals to invest with as little as SAR 1,000 ($267). The platform explicitly states that investors are not required to reside in the country, opening the doors to a global pool of capital.
Upon investment, buyers receive a formal deed detailing their percentage of ownership in the property. For rental units, any profits generated are distributed to the fractional owners on a quarterly basis. The platform also provides an option for investors to reinvest their dividends into other fractional home opportunities, allowing for compounded growth.
A Catalyst for Saudi’s Real Estate Market
This new model is seen as a crucial tool for stimulating the housing sector. At the Cityscape Global event, Rega CEO Mohammad Al-Suliman highlighted the challenges developers face with high lending rates and positioned fractional ownership as a viable alternative for financing projects.
“Developers today don’t want to go for financing,” Al-Suliman said. “The lending rates are very high. Here’s where fractional ownership comes in. Imagine that a developer wants to float 30 percent of their project, such as a tower or a plaza.”
The strategic importance of the real estate sector was further emphasized by Saudi Investment Minister Khalid Al Falih, who noted its contribution to the national economy.
“If you look at Saudi’s GDP today, 13 percent is in real estate and construction. It is growing,” stated Al Falih. “It is literally the bedrock of our economic growth and gives the foundation for our other sectors. With all the new reforms, it is already starting to attract global capital.”
About Ghaneem
Ghaneem is a Riyadh-based real estate technology company licensed by Saudi Arabia’s Real Estate General Authority (Rega). The company offers a platform for fractional property ownership, enabling both local and international investors to buy stakes in the Saudi real estate market with a low entry barrier. Ghaneem facilitates the entire process, from purchase to profit distribution, aiming to make property investment more accessible and liquid.
Source: AGBI
