Saudi Arabia Approves Law Allowing Foreigners to Own Property
In a significant move to boost foreign investment and expand real estate opportunities, Saudi Arabia has approved a new law permitting non-Saudis to own property within the Kingdom, effective January 2026.
Saudi ArabiaReal EstateForeign InvestmentProperty OwnershipVision 2030Real Estate NewsJul 09, 2025
The law allows foreign individuals and entities to own property in designated areas, including the cities of Riyadh and Jeddah, with regulated conditions for ownership in Makkah and Madinah.
The decision, taken during the weekly Cabinet session in Jeddah, forms part of the broader efforts under Vision 2030 to diversify the national economy and stimulate private sector participation.
Under the law, the Real Estate General Authority has been tasked with identifying the geographic zones where non-Saudis may obtain ownership rights or other forms of real estate entitlements. Executive regulations for the new system will be published on the Istitaa public consultation platform within 180 days of their appearance in the official Umm Al-Qura Gazette, the Saudi Press Agency (SPA) reported.
Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, said that the reform will boost real estate supply by encouraging global investors and development firms to engage in the Saudi market.
He noted that the framework is designed to ensure a stable and transparent environment by applying controls that align with national priorities and market stability.
“The law reflects a strategic approach that balances economic growth with public interest. Ownership will be allowed in specified areas, and mechanisms will be in place to manage market dynamics and prevent irregularities,” Al-Hogail said.
The law is expected to significantly enhance the Kingdom’s ability to attract international investors and real estate development companies, which in turn will increase property supply across urban centres. The government sees this as a strategic tool to meet rising demand in the residential and commercial sectors, especially in cities experiencing rapid population and infrastructure growth.
Frequently Asked Questions
When will the new property ownership law come into effect?
The new property ownership law permitting non-Saudis to own property within Saudi Arabia will come into effect in January 2026.
Which cities are included in the designated areas for foreign property ownership?
The designated areas for foreign property ownership include the cities of Riyadh and Jeddah, with regulated conditions for ownership in Makkah and Madinah.
What is the purpose of this new law?
The purpose of this new law is to boost foreign direct investment, expand real estate opportunities, and support the broader goals of Vision 2030 to diversify the national economy and stimulate private sector participation.
Who is responsible for identifying the geographic zones where non-Saudis can obtain property ownership?
The Real Estate General Authority is tasked with identifying the geographic zones where non-Saudis may obtain ownership rights or other forms of real estate entitlements.
How will this law impact the real estate market in Saudi Arabia?
This law is expected to enhance the Kingdom’s ability to attract international investors and real estate development companies, increase property supply across urban centers, and meet rising demand in the residential and commercial sectors.
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