LAHORE: Saudi developers are courting Pakistani buyers at a real estate exhibition in Lahore this week, promoting properties near Islam’s holiest sites after the Kingdom eased restrictions on foreign ownership.

The three-day Saudi–Pakistan Real Estate Exhibition, held from Oct. 21 to 23, brings together developers and prospective buyers from both countries. The Saudi–Pakistan Business Council is among its organizers.

Saudi Arabia’s revised foreign ownership rules took effect in January. They permit non-Saudis to buy property subject to conditions that vary by location and type of property. In Makkah and Madinah, individual foreign buyers must be Muslim, and the official guidance limits their ownership there to residential property in designated areas. The exhibition’s developers described projects available to Pakistani buyers, but the precise ownership rights attached to the units they promoted were not established in interviews for this story.

Businessman Faraz Mirza, who recently visited Madinah, said the possibility of owning property directly had increased his interest. He would prefer to buy land rather than invest in a long-term development project, but welcomed the range of options on display.

“You have foreign ownership. You are not relying on anyone. There is no partnership,” Mirza told Arab News on Wednesday as he sought details of Saudi properties at the exhibition.

Properties close to the Grand Mosque in Makkah and the Prophet’s Mosque in Madinah drew the most interest from visitors. Many Pakistanis travel to Saudi Arabia for Hajj and Umrah, while more than 2.5 million Pakistani nationals live and work in the Kingdom.

PROJECTS NEAR HOLY SITES

Fahad Alharbi, administrative manager at Saudi real estate and construction company Arabian Dyar, said it had more than 4,000 units for sale in over 15 towers close to the Kaaba. Two towers had been completed and were expected to be handed over to residents soon, he said.

“We came today for our brothers in Pakistan,” Alharbi said. “They can have a residence for life for them and their children after them.”

He said the longstanding cultural and religious relationship between the two countries made Pakistan an important market for Saudi developers.

“We have a lot of Pakistani brothers living in Saudi Arabia,” he said. “We love your food, we love your culture.”

Another Saudi developer, Oluo Real Estate Development, showcased Uhud Vista, a mixed-use project in Madinah with apartments, hotel units, offices and commercial space.

Company sales representative Muhaideb Almuhaideb said the project was about nine minutes from the Prophet’s Mosque and close to the Haramain train station, which connects Madinah and Makkah.

Individual units were priced from SR1.1 million ($293,000) to SR2.2 million ($587,000), he said.

Almuhaideb projected annual returns of 20 to 32 percent, but did not specify the basis for those figures or whether they referred to rental income, changes in property value or another measure. Arab News could not independently assess the projection.

Muhammad Arslan, general manager of sales at Lake City, said the prospect of ownership rather than a limited lease was attractive to Pakistani investors.

“Anyone can buy,” he said, adding that property rights could be passed on to heirs.

Purchases by foreign nationals remain subject to Saudi eligibility and location rules.

TWO-WAY INVESTMENT

Barrister Engineer Habil Ahmed Khan, CEO of local renewable energy and infrastructure firm Welt Konnect, said opportunities in Makkah and Madinah were likely to appeal to Pakistani buyers. His firm was among the exhibition’s organizers.

Khan said the event was also presenting Pakistani developments, including projects of the Ravi Urban Development Authority, to Saudi participants.

“I believe that it is a win-win situation for both sides,” he said. “Our partnership and our economic cooperation is only going to go further and grow into a more robust partnership.”

Syed Moazzam Ali, a deputy director at the Ravi Urban Development Authority, said Saudi representatives had shown interest in partnerships that could promote projects in both markets.

“The people here should invest there and the people there should invest here,” he said.