Saudi Arabia Opens Property Market as MBS Courts Overseas Buyers

After driving for nearly an hour north of Riyadh, the sand dunes start to give way to an emerging metropolis with thousands of newly-built single-family homes stretching over the horizon. They could be part of any American suburb.

Khuzam, as this more than 100 billion riyal ($27 billion) project is called, offers a window into Saudi Arabia’s efforts to beat the affordability problem plaguing housing markets from New York to Sydney. It’s also part of Crown Prince Mohammed bin Salman’s broader efforts to reshape the real estate market while attracting foreign investors and buyers to bolster the economy.

The nation’s largest developer, the government-backed National ...