Investment Opportunities in Saudi Arabia for Expats: An Overview

In this article, we outline some of the best investment opportunities in Saudi Arabia for expats, focusing on both local and international solutions. We also highlight the importance of aligning your investment strategy with a broader, well-structured financial plan that prioritises jurisdictional awareness, tax efficiency, global flexibility, and long-term financial security.

What Are the Best Local Investment Options for Expats in Saudi Arabia?

Saudi Arabia offers expats a range of regulated investment opportunities to help grow their wealth. The most common options include:

1. Real estate
2. Stocks
3. Investment funds

You should be aware that The Saudi Foreign Investment Law (as amended under the 2019 Implementing Regulations and subsequent updates by the Ministry of Investment) specifies activities that remain restricted or prohibited for foreign investors.

These include, among others, oil exploration and production, security and detective services, real-estate brokerage, and the manufacture of military equipment. Expatriates should verify the latest restricted-activities list with the Ministry of Investment (MISA) before committing capital.

Real Estate

Saudi Arabia’s real-estate market continues to expand in line with the Vision 2030 housing and infrastructure programmes, with various government forecasts projecting strong growth through 2030.

Expats can invest in real estate in Saudi Arabia in two ways:

1. Purchasing residential property, subject to eligibility and licensing; or
2. Leasing property under a usufruct arrangement, where ownership of the land remains with the Saudi state or authorised landlord.

Restrictions and Property Laws

There are several restrictions and property laws related to investing in real estate that you should be aware of:

• Expats must hold a valid Iqama (residency permit) to acquire property.
• Foreign ownership of land is generally restricted, except under approved programmes such as Saudi Premium Residency.
• Ownership in the holy cities of Makkah and Madinah remains prohibited; however, leasing is permitted under limited schemes for holders of a Premium (Golden) Residency.
• Property acquisition is restricted to one residential unit for personal use unless additional commercial licences are obtained.
• Properties near military zones or border areas are off-limits to foreign buyers.
• Expatriates may apply for residency through the Real Estate Owner Residency programme, one of the Saudi Premium Residency options. Eligibility currently requires:
  • Property ownership or long-term lease worth at least SAR 4 million,
  • No mortgage or encumbrance on the property,
  • Use of the property for residential purposes, and
  • Independent valuation by an accredited valuer from the Saudi Authority for Accredited Valuers (TAQEEM).
  • Residency may be renewed while ownership is maintained.

Stocks

Saudi Arabia’s programme to diversify its economy away from oil has encouraged growth across sectors such as IT, healthcare, logistics, and renewable energy.

Resident expats can participate through the Saudi Exchange (Tadawul), which lists more than 200 companies, including major issuers such as Saudi Aramco and SABIC.

Expats can also invest in companies in emerging sectors that align with the country’s Vision 2030 programme.

Tadawul operates two markets:

• the Main Market for established companies; and
• Nomu – Parallel Market, for smaller growth-stage firms.

In addition to equities, investors may consider sukuk (Sharia-compliant certificates), which represent partial ownership of tangible assets and generate returns from asset-linked cash flows rather than interest.

Restrictions on Investing in Stocks in Saudi Arabia

Saudi residents can purchase and sell stocks directly on the stock exchange, but non-residents don’t have this option.

To get direct and consistent access to all Tadawul markets, non-resident expats must apply for the Qualified Foreign Investor (QFI) programme, regulated by the Capital Market Authority (CMA).

To become a QFI, an authorised person must assess and approve non-resident expats and set up an investment account with one of the Saudi Exchange’s member firms.

The previous requirement for a minimum of USD 500 million in assets under management has been relaxed under CMA’s updated QFI Rules (2024), allowing smaller regulated institutions that meet eligibility criteria.

To apply for QFI status, one needs to fill out the QFI details form and prepare the following documentation:

• Copy of the certificate of incorporation or commercial register or an equivalent document
• Evidence of regulatory status, a copy of the most recent annual report and audited financial statements, and details of any suspension or revocation of licences or permissions
• List of affiliates or foreign portfolio managers

The restrictions as to the degree of ownership a foreign investor can have over a Saudi company are as follows:

• An investor can own up to 10 % of the shares in a single Saudi-listed company.
• Multiple foreign investors collectively cannot own more than 49 % of a company, although higher limits may apply to approved strategic investors under CMA rules.

Investment Funds

Investment funds allow the pooling of capital from multiple investors to invest in various assets according to pre-approved strategies. Popular investment funds for expats in Saudi Arabia include mutual funds, equity funds, and Sharia-compliant funds authorised by the CMA.

Mutual funds offer more portfolio diversification, as they can hold stocks, bonds, short-term debt, and other investments. As a result, they tend to have lower risk compared to more concentrated investment strategies, though they generally provide moderate returns.

Equity funds use the investors’ capital to purchase equities, or company ownership. Since these funds focus solely on equity investments, their diversification potential is limited compared to mutual funds. However, this limitation can be mitigated by investing in a range of stocks across different companies, which helps manage exposure to market volatility and reduce the impact of fluctuations in any single sector or company.

What Are the Risks of a Locally-Focused Investment Approach?

While Saudi Arabia’s economy continues to diversify and expand, concentrating an investment strategy solely or primarily on domestic opportunities carries substantial risks for expats. Local real estate, equities, or business ventures may appear attractive due to rapid growth, familiarity, or the emotional appeal of participating in a visible market boom.

However, overexposure to a single market may leave expats vulnerable to various economic, regulatory, or political shifts. Potential risks include currency fluctuations (especially for expats with financial ties outside the Gulf region), evolving tax or regulatory frameworks, and market corrections. These factors may disproportionately affect a portfolio heavily focused on local assets, potentially undermining long-term financial objectives.

The Benefits of a Two-Phased Investment Strategy for Expats in Saudi Arabia

To alleviate concentration risk, many financial professionals advocate a two-phased investment strategy:

What Are the Key International Investment Opportunities for Expats in Saudi Arabia?

While local assets may offer lucrative returns, global investment solutions provide greater portability, diversification, and potential tax efficiency, along with recognition across multiple jurisdictions—key considerations for expats planning future relocations or eventual repatriation.

The following regulated offshore and international investment structures may be appropriate for Western expats in Saudi Arabia seeking to build a globally diversified and potentially tax-efficient portfolio, depending on their residency and long-term objectives:

1. Personal portfolio bonds (PPBs)
2. International Investment platforms
3. Universal life insurance (ULI)
4. Pension consolidation into an international SIPP

Personal Portfolio Bonds (PPBs)

A personal portfolio bond (PPB) is an insurance-linked investment structure typically domiciled in tax-neutral jurisdictions such as the Isle of Man, Guernsey, or Jersey. Its key feature is gross roll-up, meaning investment gains accumulate within the structure without immediate liability to income, capital gains, or dividend tax while held offshore.

PPBs provide access to a broad range of global assets, including ETFs, mutual funds, and direct equities, subject to the product provider’s permitted asset list.

From a portability perspective, PPBs can offer planning advantages for expats who may later become tax-resident in high-tax jurisdictions such as the UK, as certain UK life policy tax rules (including top-slicing relief) may reduce the effective rate of tax payable on chargeable gains if conditions are met at the time of assessment.

Minimum investment in PPBs typically begins around USD 250,000, with the option to aggregate or phase contributions. Product features and tax outcomes vary by jurisdiction and provider.

International Investment Platforms

Custody-based investment platforms allow expats to access global assets while enabling multi-currency holdings, ETF and fund access, and regular contribution options.

These platforms often support bonus sweeps, ad hoc deposits, and currency management, accommodating irregular income streams. Importantly, assets accumulated within such platforms can later be transferred into a PPB if appropriate for tax or estate-planning purposes.

Typical entry levels for offshore investment platforms start at around USD 75,000 with additional regular contributions, making them suitable for expats seeking incremental, transparent, and cost-efficient wealth accumulation, subject to provider and jurisdictional rules.

Universal Life Insurance (ULI)

Universal life insurance combines permanent life cover with an investment component, typically linked to global funds or market indices while offering a degree of capital protection or minimum guaranteed benefit, depending on policy design.

For expats with significant estates, ULI policies can provide estate planning advantages: death benefits may bypass probate and, when written under trust, may be excluded from the taxable estate under certain jurisdictions’ inheritance tax rules (e.g., the UK).

These policies are capital-intensive, with minimum premiums typically from USD 500,000, and are more suited to high-net-worth expatriates seeking to integrate long-term wealth accumulation with intergenerational estate transfer.

However, local regulation of life insurance distribution in Saudi Arabia (under SAMA) requires that any such policy be arranged via a licensed intermediary.

Pension Consolidation Into an International SIPP

For UK expats in Saudi Arabia holding legacy employment-based pensions, consolidation into an International Self-Invested Personal Pension (SIPP) may provide a streamlined and tax-efficient approach to retirement planning.

A transfer to an international SIPP can provide the following benefits:

• Investment flexibility: access to a range of regulated global assets, including funds, bonds, and ETFs.
• Tax deferral: investments grow free from UK tax until withdrawals are made, with tax treatment depending on residency at the time of drawdown and applicable double-taxation agreements (DTAs).
• Centralised management: allows multiple UK pension pots to be consolidated into a single, professionally administered structure.

It is important to note that International SIPPs remain under UK pension regulation (FCA and HMRC) and do not provide the same benefits as a QROPS. Transfers from certain defined benefit or safeguarded schemes require UK-regulated financial advice.

Why Is a Holistic Financial Plan Essential for Expats in Saudi Arabia?

A holistic financial plan establishes the necessary framework for integrating individual investment opportunities—whether local or international—into a cohesive, sustainable, and globally portable wealth strategy. Aligning each investment decision with broader objectives such as tax efficiency, retirement planning, global mobility, or cross-border estate planning considerations enables expats in Saudi Arabia to manage risk more effectively while supporting long-term wealth preservation and growth.

The key dimensions of a holistic financial plan include:

• Global diversification: Mitigating overreliance on a single jurisdiction by combining local exposure to Saudi markets with international assets.
• Tax efficiency: Structuring investments to optimise both current and future tax outcomes, taking into account residency status, double taxation agreements, and evolving Saudi and foreign tax rules.
• Liquidity management: Maintaining adequate reserves while allocating surplus liquidity to generate long-term wealth.
• Estate and succession planning: Protecting and transferring wealth across borders in a legally compliant and tax-efficient manner, consistent with relevant jurisdictional inheritance and succession laws.