Mega projects, market liberalisation reshape development outlook

Jeddah's urban transformation is gaining momentum, driven by sweeping real estate reforms and a surge in large-scale infrastructure investment. With construction advancing on Jeddah Tower, new partnership agreements reshaping the Jeddah Central masterplan, and major modernisation works underway at Jeddah Islamic Port, the city is rapidly positioning itself as a global hub for investment, tourism, and trade.

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THE construction and real estate sectors in Jeddah are entering a period of significant accelerated momentum, driven by major national policy reforms and the resumption of flagship mega-projects.

The upcoming foreign real estate ownership law is positioned as a primary catalyst, expected to unlock substantial foreign direct investment (FDI) and stimulate construction across premium residential and commercial segments. Simultaneously, the resumption of work on the Jeddah Tower, the signing of key partnerships to drive forward the ambitions for the Jeddah Central Development and critical infrastructure upgrades at Jeddah Islamic Port signal a strong commitment to enhancing the city’s role as a global economic and logistics hub, in line with Vision 2030 objectives.

The core driver for future construction activity is Saudi Arabia’s approval of a new law permitting foreign ownership of real estate in designated areas, which will be effective from January next year. This legislation is expected to generate a significant wave of new demand from expatriates, licensed foreign companies, and international investors. Developers anticipate that this move will drive upward pricing momentum and stronger absorption rates, especially in premium districts such as the Jeddah Central waterfront, North Obhur, Al-Ruwais, and communities near King Abdulaziz International Airport.

The timing of these reforms is especially relevant for Jeddah's flagship mega-projects. Greater investor participation is expected to benefit the ongoing Jeddah Central redevelopment and the revived Jeddah Economic City - home to the Jeddah Tower, which recently resumed construction. These large-scale projects stand to gain from a more diversified buyer base and increased global visibility.