In a groundbreaking move to open up its real estate sector, Saudi Arabia’s Cabinet has approved the use of digital identification for non-resident, non-Saudi foreigners to own property in the country.
The decision comes as part of broader efforts to implement the non-Saudi Real Estate Ownership Law, which will come into effect in January 2026, a Saudi Gazette report said.
To support the rollout, the General Real Estate Authority will work with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, and other relevant entities to activate and regulate the digital ID mechanism.
Governance overhaul and committee formation
The cabinet also backed governance measures proposed by the Strategic Committee of the Council of Economic and Development Affairs, which include forming a specialised committee within the Real Estate Authority to oversee non-Saudi ownership and usufruct rights.
Additionally, the board of the General Real Estate Authority has been restructured, now chaired by its CEO and composed of representatives from various ministries, government entities, and three members from the private sector.
Key requirements for foreign buyers
In July, the Cabinet formally approved the non-Saudi Real Estate Ownership Law. Just last month, draft executive regulations were published, laying out the conditions for non-resident ownership.
To qualify, foreign buyers must activate a digital ID via the Absher platform, open a Saudi bank account, and obtain a local contact number, setting the stage for a more accessible property market for global investors.
Short-term rentals, fueled by platforms like Airbnb and Vrbo, are becoming more prevalent. The rapid rise in demand for such rentals has sparked a debate among property owners, investors, and policymakers. Based on a recent report by AirDXB, the short-term rental market in Dubai has experienced significant growth, with average daily rates increasing by 30 per cent year-over-year in the second quarter of 2024.
So could the short-term rental boom put the long-term value of Dubai’s property market at risk?
The rise of short-term rental properties in Dubai
The city’s favorable climate, luxurious amenities, and year-round tourism draw millions of visitors annually, providing a steady stream of demand for temporary accommodation. For property owners, offering a home on short-term rental platforms is an appealing way to capitalise on the influx of tourists.
Recent data from AirROI shows that the average yearly income for Airbnb hosts in Dubai exceeds $25,000, with the highest-performing units bringing in over $2,000 per month; approximately $300 a day.
Recognizing these lucrative trends, investors are increasingly entering the market to meet rising demand and capitalise on the substantial returns that short-term rentals can yield. In areas like Downtown Dubai, figures from TRPE Real Estate suggest that hosts can potentially achieve annual incomes within the Dhs80,000 to 300,000 range.
Impact on long-term property value
According to Airbtics, a short-term rental property in Dubai is typically booked for 255 nights per year, boasting an average occupancy rate of 70 per cent and an average daily rate of Dhs620. While these figures reflect strong market performance, they also highlight the sector’s vulnerability to external factors such as economic downturns and shifts in tourism trends. Frequent turnover in short-term rentals can disrupt community cohesion and contribute to security issues, and poor maintenance making areas less appealing to long-term residents.
The flexibility of converting properties from long-term rentals to short-term options introduces instability in the market, deterring long-term investors seeking stable returns. Short-term rentals have seen a dramatic increase in demand, especially in areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah.
Blue Breeze reports that a holiday home in Dubai Marina can yield between Dhs 20,000 and 25,000 per month during peak seasons, while during off-peak periods, earnings typically range from Dhs2,000 to 15,000 per month. In contrast, the same property under traditional rental agreements would generate a consistent Dhs12,000 per month, with little room for rate increases due to rental regulations. This growing reliance on short-term rentals can contribute to stagnation in property values and increases the risk of devaluation during economic downturns.
Regulatory concerns and long-term outlook
Dubai’s government has been proactive in introducing regulations to govern short-term rental platforms, aiming to curb potential negative impacts. In 2021, the Dubai Department of Economy and Tourism (DET) mandated that all short-term rental operators obtain a holiday home license to legally rent properties on platforms like Airbnb and Vrbo. This process requires property owners to register their properties, submit necessary documents, and pay applicable fees. The license is valid for one year, and must be renewed annually.
According to the DET, owners are required to collect a tourism dirham fee of Dhs10-15 per room per night, depending on the property’s classification.
However, some critics argue that the regulations are not stringent enough to counteract the long-term risks. Recent data from the Global Property Guide reveals that residential rental prices in Dubai increased by 16.85 per cent year-over-year in November 2024. Villa rents saw a rise of 12.92 per cent, while apartment rents grew by 17.36 per cent.
The shift towards a “sharing economy” model in Dubai may inadvertently lead to a reduction in the overall housing supply, especially in areas where luxury properties are converted into short-term rentals. Short-term rentals can push up property prices and rents in the long run, putting pressure on local residents and businesses who depend on affordable long-term housing.
As Dubai’s property market evolves, the key challenge will be balancing short-term rental growth with long-term housing stability. The UAE’s unique regulatory approach could help mitigate these risks, but stricter enforcement may be required to avoid further market distortion. Integrating more affordable housing options and expanding long-term residential developments could help counterbalance the shift toward short-term rentals.
Dubai Police has unveiled the latest addition to its renowned fleet of luxury patrol vehicles, the high-performance Audi RS7 Performance. The move is part of the force’s ongoing efforts to enhance public safety, embrace cutting-edge technologies, and maintain a world-class presence in key tourist areas.
The unveiling took place at the Museum of the Future, one of Dubai’s most iconic landmarks. The ceremony was led by Major General Eid Muhammad Thani, Assistant Commander-in-Chief for Criminal Investigation Affairs, alongside Major General Rashid Al Falasi, Director of the General Department of Transport and Rescue. Also present were representatives from Al Nabooda Automobiles, including Jan Scheidgen, General Manager of Audi – Al Nabooda Automobiles.
Performance meets police precision
The Audi RS7 Performance boasts exceptional engineering and performance. With 630 horsepower and 850 Nm of torque, the car accelerates from 0 to 100 km/hr in just 3.4 seconds. Its bold design and advanced technological features make it both a powerful patrol vehicle and a head-turner on the roads.
During the launch, Major General Thani was given a comprehensive demonstration of the vehicle’s capabilities. He noted that such high-performance vehicles enhance police presence in popular areas and reinforce Dubai’s image as a secure and innovative global city.
Strategic partnership drives innovation
Major General Thani praised the continued collaboration with Al Nabooda Automobiles, calling it a key part of the Police’s strategic vision. “Integrating high-performance vehicles like the RS7 helps ensure that Dubai Police remains at the forefront of mobility and law enforcement,” he said.
The luxury patrol cars are not only about performance but also play a symbolic role in showcasing Dubai’s commitment to excellence in both policing and public engagement.
Shared vision for mobility and excellence
K. Rajaram, CEO of Al Nabooda Automobiles, expressed pride in the partnership: “Our collaboration with Dubai Police, especially the Tourism Police Department, reflects a shared ambition rooted in trust. With the Audi RS7, we’re supporting a vision that blends high performance with innovation.”
He added that the partnership underscores Dubai’s global reputation for leadership, luxury, and technological advancement.
Abu Dhabi’s real estate market is witnessing momentum in 2025, with Al Reem Island emerging as the standout performer in both investment and lifestyle offerings. According to MERED, the international award-winning real estate developer, Al Reem Island recorded a 38 per cent year-on-year increase in off-plan property weighted average prices during Q2 2025.
These figures, based on extensive transaction data from Quanta, underscore the island’s appeal as an investment destination. In comparison, Khalifa City and Jubail Island saw notable, though more modest, price increases of 24 per cent and 20 per cent respectively, further confirming the overall resilience and upward trajectory of Abu Dhabi’s property market.
Image credit: Supplied
In the rental segment, Al Reem Island also posted a robust 21 per cent year-on-year rise in apartment rents, driven by sustained demand and high-quality infrastructure. Quanta’s rental indices point to growing interest in communities that offer comprehensive amenities and strategic connectivity.
Residents of Al Reem Island benefit from a unique urban lifestyle that blends waterfront living, Grade-A office spaces, top-tier healthcare, expansive retail offerings, and the sprawling 1,000,000 square-foot Reem Central Park. Situated between Abu Dhabi’s business core and the cultural hub of Saadiyat Island, the island embodies a modern “live-work-play” ethos.
Branded residences power luxury real estate growth
Abu Dhabi’s booming real estate sector isn’t limited to just one location.
The luxury and branded residences market is experiencing record growth in 2025, with branded property launches increasing fourfold compared to 2024, according to Metropolitan Capital Real Estate (MCRE).
Fuelled by rising interest from high-net-worth individuals (HNWIs), international investors, and a growing pool of long-term residents, the capital’s premium segment has seen a five per cent increase in transactions valued at Dhs7m and above, totaling Dhs6.3bn in the first four months of the year alone. More than half of these deals were in the Dhs10m and above bracket, signaling heightened investor confidence in Abu Dhabi’s upscale real estate offerings.
“Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments,” said Evgeny Ratskevich, CEO of MCRE. “Many investors who began with a single unit are expanding their portfolios, while long-term residents are choosing to buy rather than rent, reflecting a deep trust in the market’s long-term potential.”
One of the most significant drivers of this growth has been the surge in branded residence developments, particularly in hot spots like Saadiyat Island, Al Reem Island, and Mariah Island. With at least 25 new branded residences expected to launch in 2025, up from just a handful last year, Abu Dhabi is quickly becoming a hub for high-end, lifestyle-centric living.
Notable launches this year include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, and Mandarin Oriental Residences. One standout transaction came from Nobu Residences, which made headlines with a record-breaking penthouse sale of Dhs137m, the highest ever residential sale in Abu Dhabi.
New era for Al Reem Island and ADGM
MERED is poised to further elevate Al Reem Island’s profile with a new waterfront project that spans over 23,400 square meters within the Abu Dhabi Global Market (ADGM) jurisdiction. Designed in partnership with Pritzker Prize-winning architects, the project promises to redefine super-prime living in the capital, offering direct sea views, iconic design, and unmatched luxury.
“Al Reem Island has unequivocally established itself as Abu Dhabi’s premier residential destination. Waterfront properties are now averaging over Dhs1,800 per square foot, with new launches exceeding those prices,” said Artemiy Marinin, Project Director at MERED.
A major catalyst in Al Reem’s ascent has been the expansion of ADGM’s jurisdiction to the island in April 2023. Since then, more than 1,100 new businesses have joined, bringing the total to over 11,000 registered entities. This influx of professionals, executives, and entrepreneurs has added further depth to the island’s luxury appeal and rental demand.
As Abu Dhabi’s urban landscape evolves, the combination of strong fundamentals, visionary developments, and branded living is setting a new benchmark for residential real estate. From record-breaking sales to design-driven innovation, Al Reem Island is leading the charge in the capital’s transformation into a global real estate hotspot.
Emirates NBD, one of the largest banking groups in the Middle East, North Africa and Türkiye, said customer trades on its zero-transaction-fee local equities platform have surpassed Dhs5bn in the 12 months since it launched.
The initiative, introduced on August 26, 2024, allows investors to trade UAE-listed equities commission-free via the bank’s digital wealth platform ENBD X.
The bank said more than 300,000 commission-free trades have been executed on the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX) and Nasdaq Dubai since launch, with access to over 150 UAE-listed equities.
The mobile banking app ENBD X integrates banking, investment and advisory services, and offers features such as customisable price alerts, real-time investing and fully digital onboarding.
Emirates NBD said the service aims to expand access to financial markets, aligning with the UAE’s “We the UAE 2031” strategy to deepen capital markets and boost financial inclusion.
Emirates NBD’s zero-fee local equities offer received a strong response
Marwan Hadi, group head of Retail Banking and Wealth Management, said: “We are pleased to see an outstanding response to the zero-transaction-fee trading initiative that we launched on our digital wealth platforms, accessible via ENBD X.
“One year on, our customers have embraced purposeful investment by investing in local equities. As a leading national bank, we are proud to transform how people invest, by providing an inclusive, accessible, transparent and affordable platform, while also supporting local businesses.”
He added that innovation remained a core focus, with ongoing enhancements to ENBD X and the development of new products and services to meet evolving customer needs.
Last year, Emirates NBD also launched fractional bonds on ENBD X as part of efforts to broaden access to financial markets.
From dishwasher to dealmaker: Haitham Mattar’s bold IHG expansion plan
Mattar oversees a vast region spanning the Middle East, Africa, and South Asia. IHG currently operates 220 hotels in this footprint, with 180 more in the pipeline
Haitham Mattar is the MD for IHG Hotels & Resorts Middle East, Africa and Southwest Asia. (Supplied)
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Haitham Mattar has seen the hospitality industry from every angle. He started as a dishwasher in Atlanta, rose through the ranks of global hotel giants, and today leads IHG Hotels & Resorts across the Middle East, Africa and Southwest Asia as its managing director. But beyond the impressive career journey, Mattar is on a mission to reshape regional tourism and inspire the next generation.
“I’ve been in hospitality for over 30 years,” he tells Gulf Business. “I actually stepped away for a while to head up tourism for Ras Al Khaimah, then advised Saudi Arabia, before coming back to IHG. I started right at the bottom, in the kitchen, scrubbing pots and pans, and I learned very quickly that no job is too small in hospitality. That’s why I wrote my book Pots and Pans and Five-Year Plans: it’s intended to inspire the younger generation to dream big.”
The book, published earlier this year, dives into resilience, navigating adversity, and building a fulfilling career, whether in hospitality or another industry. It charts Mattar’s story from his childhood in Lebanon during the civil war, to immigrating to the US at age five, and launching his career at the Courtyard by Marriott in Georgia.
“I started as a dishwasher,” he recalls. “I was 17 and just wanted a weekend job like my friends. I didn’t want to rely on my family for pocket money, so I took what I could get. But I was curious — how did the chef make breakfast? How could I master whatever role I had? That mindset stayed with me.”
From Marriott, Mattar eventually joined IHG, beginning with a role at the InterContinental Dubai on the Creek. “I started in rooms division, then became Director of Sales and Marketing. I stayed about five years before moving into a regional role covering the Middle East and Africa. I left in 2011 to join Hilton, spent five years in Ras Al Khaimah, two years in Saudi, and now I’m back. This is my fifth year again with IHG,” he says. “Seems like I run on five-year cycles.”
Doubling down on Saudi
Today, Mattar oversees a vast region spanning the Middle East, Africa, and South Asia. IHG currently operates 220 hotels in this footprint, with 180 more in the pipeline. The group is positioned to nearly double its regional presence in the next five years.
Saudi Arabia is the biggest growth driver. “We have 45 operating hotels in the Kingdom and another 49 in the pipeline. That’s over 100 per cent growth,” he says. “It’s also our 50th year in Saudi. We’ve had a presence there since 1975, and we continue to see momentum.”
In the UAE, IHG has 34 operational properties and 12 in development, representing 50 per cent growth. “Dubai remains attractive, particularly with ownership changes. New buyers often look to rebrand, and that gives us opportunities to bid,” says Mattar. “We’ve also signed Greenfield projects, including the world’s tallest hotel tower under our Vignette Collection brand.”
Despite a high volume of new supply, Dubai’s hotel occupancy rarely dips. “The city’s average occupancy has never dropped below 75 per cent. That’s a testament to the leadership’s strategy of aligning supply with demand,” he says.
Regional gaps and opportunities
Beyond the UAE and Saudi Arabia, Mattar sees mixed readiness across the rest of the GCC.
“Oman has huge potential — rich culture, great food, incredible nature. But they haven’t fully bounced back from COVID. Key markets like Germany and the UK haven’t returned in the same numbers,” he says. “There’s a new tourism minister and a solid strategy in place, so I’m optimistic.”
Kuwait, however, has not prioritised tourism yet. “There’s limited hotel development. We’re opening a new InterContinental soon and recently launched a Vignette Collection hotel on the beach, but it’s still mainly business travel.”
Bahrain sees modest volumes, primarily from weekend travellers coming from Saudi’s Eastern Province. As for Qatar, the post-World Cup environment has created new challenges.
“There’s a lot of supply in the market, but not yet a consistent 12-month events calendar to drive sustained demand,” Mattar explains. “Events tend to be last-minute, which causes spikes and dips in occupancy. We’d like to see more engagement between the tourism board and the private sector. There’s an opportunity for Qatar and the UAE to collaborate more on tourism. It’s just a short hop between the two.”
He also supports the upcoming unified GCC tourism visa. “It would be a game changer. Like the Schengen visa in Europe, a regional visa would allow travellers to explore multiple countries in one trip. Fly into Dubai, visit Doha, drive to Muscat — it’s all possible.”
The conscious traveller
Across all markets, Mattar is seeing a growing demand for sustainable travel. “Today’s traveller wants to stay in hotels that practise what they preach on sustainability. They want to be part of the journey,” he says.
IHG’s Journey to Tomorrow is a 10-year global sustainability plan, and the group has embraced it across the region. “Over 85 per cent of our hotels in this region have adopted practices like water conservation, LED lighting, and energy-efficient room management systems,” says Mattar.
One example is in-house water bottling to eliminate plastic waste. Another is IHG’s Green Engage programme, which provides hotel managers with more than 200 actions to reduce carbon footprint and energy usage. “Many of our properties now have intelligent in-room systems that regulate air conditioning, lighting, and energy consumption based on guest behaviour,” he explains.
“Guests notice the details. They ask questions. They expect no single-use plastics. They want towels reused, not washed daily. Sustainability is now part of the decision-making process.”
One of IHG’s latest developments is the debut of its first Kimpton in the UAE with a new signing in Dubai’s Business Bay.
Market insights
When it comes to the UAE’s top source markets, India leads year-round, followed by the UK, Germany, Russia, Ukraine, and the US. “The US is especially strong for conferences,” Mattar says.
In Saudi Arabia, the guest mix is highly diverse. “The holy cities attract Muslims from all over the world — China, the US, the UK. But we’re also seeing more interest from American and European travellers who are curious about Saudi’s transformation.”
India continues to be a key market for Saudi Arabia as well. “We’re seeing more visiting friends and relatives traffic. That helps the wider ecosystem because people spend on malls, restaurants, and entertainment — not just hotel rooms.”
Looking ahead
With rising tourism targets in both Saudi Arabia and the UAE, Mattar believes collaboration is essential.
“Whether it’s sustainable travel, regional integration, or just offering great experiences, we all have a role to play,” he says. “Our job is to help people dream big — whether they’re checking in as a guest or starting out in their career like I did.”
Haitham Mattar (left), managing director for IHG Hotels & Resorts in India, Middle East & Africa, and Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, following the signing of an MoU in December 2024 to strengthen collaboration between Dubai Economy and Tourism and IHG.
