IMF raises Saudi Arabia's 2025 growth forecast to 3.6%
RIYADH — The International Monetary Fund (IMF) has revised its 2025 growth forecast for Saudi Arabia upward to 3.6%, a 0.6 percentage point increase from its April estimate, driven by expected gains in oil revenues and continued momentum in non-oil sectors.
In its latest World Economic Outlook released Tuesday, the IMF also raised Saudi Arabia's projected growth for 2026 to 3.9%, reflecting sustained economic reforms and diversification efforts under Vision 2030.
The updated projections place Saudi Arabia among the world's fastest-growing major economies for the year, following only India (6.4%) and China (4.8%).
The Kingdom's growth outlook also surpasses the Middle East and North Africa regional average, which is forecasted at 3.4% for 2025.
The IMF noted that the Kingdom's economic outlook is benefitting from a rebound in oil activity, coupled with the ongoing expansion of non-oil industries such as tourism, logistics, and manufacturing.
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Saudi Gazette
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It also mandates registration with the competent authorities, introduces a fee of up to 5 percent on disposals, and sets penalties of up to SR10 million or forced sale of property in case of violations. The legislation replaces the previous 2000 law and establishes a comprehensive, transparent system to regulate foreign ownership of real estate in the Kingdom. To read the full text of the law, here are the articles in detail: Article 1: Definitions For the purposes of this Law, the following terms shall have the meanings assigned to them: Law: The Non-Saudi Real Estate Ownership Law. Regulations: The implementing regulations of the Law. Authority: The Real Estate General Authority. Non-Saudi: A natural person who does not hold Saudi nationality. A non-Saudi company. A non-Saudi non-profit entity. Any other non-Saudi legal person designated by decision of the Council of Ministers. Article 2: General ownership provisions A non-Saudi may own real estate or acquire other real rights in real estate within geographic areas to be defined under Paragraph (2) of this Article. By decision of the Council of Ministers — based on a proposal from the Authority's Board of Directors and approval of the Council of Economic and Development Affairs — the following shall be determined: a. The geographic zones where non-Saudis may own or acquire real rights. b. The types of real rights non-Saudis may acquire. c. The maximum percentage of ownership permitted to non-Saudis within such zones. d. The maximum duration for usufruct rights for non-Saudis. e. Any controls related to non-Saudi ownership or acquisition of real rights. In addition to the rights set out in Paragraphs (1) and (2), a natural person legally residing in the Kingdom may own one residential property outside the designated zones, except in Makkah and Madinah. The Regulations shall set the provisions of this Paragraph. In Makkah and Madinah, non-Saudi ownership or acquisition of real rights shall be limited to natural persons who are Muslims. Article 3: Non-listed foreign companies A non-listed company incorporated under Saudi law with one or more foreign shareholders may own or acquire real rights in property within the zones defined under Article 2(2), including in Makkah and Madinah. Subject to Paragraph (1) and other applicable laws, such companies may also acquire property or rights needed for their activities or for staff housing inside or outside the designated zones, in accordance with the Regulations. Article 4: Listed companies and funds Listed companies, investment funds, and special-purpose entities licensed under Saudi law may own or acquire real rights in property across the Kingdom — including in Makkah and Madinah — in accordance with the Capital Market Law, its implementing regulations, and controls established by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant bodies. Article 5: Relation with other laws This Law shall not prejudice the application of the Premium Residency Law, the GCC nationals' reciprocal property ownership framework, or any other laws granting more favorable rights to non-Saudis. Article 6: Scope of rights Ownership or acquisition of real rights by a non-Saudi does not confer any privileges beyond those prescribed by law for the holder of such rights. 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Article 10: Penalties Without prejudice to harsher penalties under other laws, any violation of this Law or its Regulations shall result in one or more of the following: a. A warning. b. A fine not exceeding 5% of the value of the real right concerned, capped at SR10,000,000. The Regulations shall include a schedule of violations and corresponding penalties, taking into account the seriousness, circumstances, and effects of the violation. Article 11: Committees One or more committees of at least three legal specialists shall be formed by decision of the Authority's Board to examine violations and impose penalties under Article 10. The Authority's Board shall set the rules, procedures, and compensation for committee members. Committee decisions may be appealed before the Administrative Court within 60 days of notification. Article 12: False information Without prejudice to harsher penalties under other laws, a non-Saudi who knowingly provides false or misleading information to acquire property or rights under this Law shall be subject to: a. A fine not exceeding 5% of the value of the real right concerned, capped at SR10,000,000. b. Forced sale of the real right. The Public Prosecution shall investigate and prosecute such violations, with jurisdiction resting in the competent court. Where a court orders the sale of a real right, the violator shall be refunded either the purchase price or the sale proceeds, whichever is less, after deducting fines, taxes, fees, and sale expenses. Any surplus shall be paid to the State Treasury. Article 13: Regulations The Regulations shall be issued by the Council of Ministers within 180 days of publication, based on a proposal by the Authority's Board and approval of the Council of Economic and Development Affairs, and shall take effect upon enforcement of this Law. 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