SAMA Mandates Bank Accounts for Foreign Property Buyers

Saudi Arabia's central bank directed all banks in the kingdom to open accounts for foreign property buyers, removing a key hurdle for overseas investors under the country's Foreign Ownership Law. The directive, issued by the Saudi Central Bank (SAMA), requires biometric identity verification and digital payment channels for new account holders.

The move targets individuals and legal entities covered by the 2023 law that allows non-Saudis to own real estate in certain areas, including Mecca and Medina. Before the directive, foreign buyers often struggled to obtain bank accounts without a local sponsor or long-term residency, a gap that slowed property transactions. The new rules sidestep that bottleneck by requiring banks to treat foreign property buyers as eligible depositors, provided they pass biometric checks.

SAMA's push toward digital payments also matters. The same directive mandates that banks offer card-based or electronic payment options for these accounts, reducing reliance on cash. That aligns with the central bank's broader financial inclusion agenda, which targets a 70% non-cash transaction share by 2030. For foreign buyers, the shift means faster settlement and fewer frictions when funding a property purchase from abroad.

The macro signal is straightforward. Making it easier for foreigners to buy Saudi real estate should boost demand for residential and commercial property, particularly in Riyadh, Jeddah, and the holy cities. Higher demand, in turn, supports construction activity and the broader Vision 2030 goal of raising homeownership among Saudis while attracting foreign capital. The housing market has already seen price gains: the General Authority for Statistics reported a 2.3% year-on-year rise in residential property prices in the first quarter of 2025, driven partly by strong demand from both locals and expatriates.

The transmission path runs through inflation and the current account. Real estate accounts for a meaningful share of Riyadh's consumer price index, and sustained foreign buying could push up housing costs, complicating the central bank's inflation outlook. On the external side, capital inflows from foreign property purchases support the Saudi riyal's peg to the dollar, though the effect is small relative to oil revenues. The broader risk is that easier access to banking and property ownership could accelerate foreign investment faster than the market can absorb, flooding supply and compressing yields.

SAMA's directive also includes a compliance deadline. Banks must implement the biometric and digital payment requirements within six months, according to the central bank's statement. The rules are effective immediately for new account openings.

Stepping back, the policy is a practical extension of the Foreign Ownership Law. It removes the operational friction that kept many potential buyers on the sidelines, even after the legal barriers fell. The next variable to watch is transaction volume: if the Saudi real estate market sees a sustained uptick in foreign purchases, it will validate the assumption that banking access was the binding constraint.