Is Saudi the New Dubai?

Is Saudi Arabia the new Dubai?

At Off Plan Dubai, we pride ourselves on bringing investors the best real estate investments in the world. We show up, take action and provide investors with the best options from the world’s leading developers.

2025 has a new player… Saudi Arabia.

As it lies in the GCC and in many ways is the cultural, religious and investment heart of the Middle East, we ask a question that many investors are now asking: Is Saudi Arabia the new Dubai?

Our take is that Saudi Arabia is not the new Dubai, but it is aiming to become something even bigger and more influential in its unique way.

It is May 2002, and Dubai’s real estate landscape is about to change forever. Dubai overnight issues a decree that allowed non-GCC nationals to buy, sell and lease property in selected developments. The property market changed forever, the floodgates were opened, and international buyers and investors, primarily from Europe, South Asia and the Middle East, flooded the market. Developers like Emaar, Nakheel and Dubai Properties launched mega projects such as The Palm Jumeirah, Dubai Marina, Downtown Dubai (Burj Khalifa), Jumeirah Lakes Towers, etc. Prices surged as demand outstripped supply and Dubai’s skyline was to become unrecognisable as construction boomed. To manage this, we saw the creation of regulatory bodies such as RERA (Real Estate Regulatory Authority) in 2007 and the Dubai Land Department (DLD). These bodies brought transparency, regulation, and investor protection into the market.

Last week, we got the news that many had been waiting for: Saudi Arabia is opening its Real Estate market to foreign investors. Over 1200 HNWI have already purchased real estate and taken advantage of the Premium Residency. Still, now we will see whole regions become Freehold and attract international investment that previously may have looked elsewhere. If you could go back in time to 2002, would there have been a better real estate investment location than Dubai? Based on history, the opening of the real estate sector can provide opportunities for early investors that may never be seen again.

Here’s a breakdown of the comparison and how Saudi Arabia is positioning itself to investors:

🔹 1. Different Goals, Different Scale

  • Dubai became a global hub through tourism, finance, and luxury real estate. It’s a city-state with a fast, nimble model that thrives on growth and foreign investment in the region.
  • Saudi Arabia is building entire mega-regions, not just a city — think NEOM, The Line, Diriyah, New Murabba, Red Sea Project, and more. These are multi-trillion-dollar visions backed by state wealth with longer timelines.
  • Riyadh and Jeddah, under the new government reforms, will open many of their locations up for foreign investments. The two cities already hold world-class infrastructure, but the influx of foreign investment will help to drive growth across multiple sectors, such as health, education and Real Estate.

🔹 2. Vision 2030: A National Overhaul

Saudi Arabia’s Vision 2030 isn’t just about real estate or tourism — it’s about:

  • Diversifying the economy away from oil
  • Building entire new industries (tech, entertainment, renewable energy)
  • Massive investments in infrastructure, giga-projects, and tourism
  • Encouraging foreign direct investment and private sector growth
  • Opening the Real Estate market for foreign investment was pivotal to this growth. Minister of Municipal Affairs and Housing and Chairman of the Real Estate General Authority. Al Hogail commended the law, calling it “an extension of the Kingdom’s comprehensive real estate reform agenda. “The updated law aims to increase real estate supply, attract global investors and developers, and further stimulate foreign direct investment (FDI) in the Saudi market.” 

🔹 3. Real Estate & Investment

  • Saudi Arabia is now opening up to freehold ownership for foreigners in key zones — this is a game-changer, much like Dubai’s 2002 freehold reform. 2002 overnight changed the game for Dubai.
  • Demand is growing for luxury residences, hospitality assets, and commercial hubs, but it’s earlier in the curve than Dubai, which may be suitable for long-term investors.

🔹 4. Tourism & Lifestyle

  • Dubai is already a leisure powerhouse with global appeal.
  • Saudi Arabia is catching up fast: launching events (like Riyadh Season), building tourist destinations (like AMAALA, Red Sea), and easing social restrictions (music, cinema, fashion).

🔹 5. Legal & Cultural Factors

  • Dubai offers a more liberal environment, which attracts many Western expats and tourists.
  • Saudi Arabia is liberalising, but remains more conservative, though the pace of change has surprised many. Off Plan Dubai spends time regularly in Riyadh and Jeddah, and you will not find anywhere more welcoming and family-oriented.

🔹 Final Take: “Saudi Arabia is not the new Dubai — it’s the new Saudi Arabia.”

  • Dubai is a city; Saudi Arabia is a nation of 36 million with resources, space, and ambition to reshape the entire Middle East.
  • If the current momentum continues, Riyadh, NEOM, and Jeddah could rival Dubai, not just as competitors, but as part of a new multi-polar Gulf.
  • We are firm believers in the full strength of the region. A dynamic, responsive and growing Saudi Arabia is only a positive for the region. HNWI, Family, and private offices looking to establish and open offices in Saudi Arabia will still primarily drive growth and tourism to the UAE.

If you’re thinking from an investment angle, Saudi Arabia may offer:

  • Higher long-term upside
  • Early-mover advantage
  • More risk, but also more reward than the now-mature Dubai market.

Since the middle of 2024, you have seen developers enter the Saudi Market, aligned with some of the most prominent names in the Real Estate world. Trump Tower Jeddah, which is due to be followed by a sister tower in 2026 in Riyadh, as well as the launch of a Trump Masterplan with Golf Course and Villas. DAR Global has launched House of Mouawad Villas in Riyadh, which has been purchased by some of the most prominent business people across the world as the value hits the premium residency requirements for its buyers.

We will always keep investors informed on opportunities across both regions and we are excited to see if the new legislative reforms impact the Saudi market as they did the UAE.

Current Saudi Real Estate Investments

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