Mohammed Al-Farraj, Chief Investment Officer at Arbah Capital, said that imposing a 2% fee on transactions by non-Saudis for properties in Mecca, Medina, Riyadh, and Jeddah aims to curb short-term speculation and encourage long-term investment in the Saudi real estate market.

Al-Farraj explained in an interview with Al Arabiya Business that the fee rate is low compared to many global and regional markets, making it a supportive factor for attracting foreign investors, especially given the stability and low volatility of the Saudi real estate market.

He expects the market capitalization of listed real estate companies to rise from about SAR 136 billion currently to SAR 150 billion over the next two years.

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