Saudi Arabia Opens Property Market to Non-Saudis from January 2026

Saudi Arabia is on the brink of a significant transformation in its property market, as the Kingdom prepares to open real estate ownership to non-Saudis from January 2026. This groundbreaking reform follows the publication of the Law of Real Estate Ownership by Non-Saudis in the official gazette on July 25, 2025. The new law, which will come into effect 180 days after its publication, replaces the 2000 legislation and marks a crucial step towards achieving the goals set out in Vision 2030.

The new framework will permit foreign individuals, foreign companies, non-profit organizations, diplomatic missions, and Saudi companies with foreign shareholding to acquire real estate in designated zones. These zones are expected to include high-demand urban areas such as Riyadh and Jeddah. To ensure transparency and legal validity, all properties purchased by non-Saudis must be registered in the national Real Estate Registry, with full disclosure of ownership information.

One of the most sensitive aspects of the reform concerns the holy cities of Makkah and Madinah. While the long-standing prohibition on foreign ownership in these cities will remain, a narrow opening is being introduced. Muslim foreign individuals and foreign-owned Saudi companies will, for the first time, be allowed to acquire limited ownership or usufruct rights in Makkah and Madinah, subject to strict regulatory oversight. The precise conditions for these exceptions will be detailed in the executive regulations set to be published by the Real Estate General Authority (REGA) in the coming months.

Foreigners will gain access to a wider range of property rights, including full ownership, long-term leases, usufruct arrangements, and other real rights. However, the authorities will retain the power to cap foreign ownership percentages and impose time limits based on the location and type of property. Foreign buyers will also face financial obligations, including a combined 10% in taxes and fees linked to the real estate transaction tax and administrative charges. Violations of the law can result in fines of up to 10 million Saudi riyals, and properties acquired through false or misleading information may be seized and auctioned.

Expatriates legally residing in the Kingdom will be allowed to purchase one residential property for personal use, even outside the designated zones. Muslim expatriates may also be permitted to purchase in Makkah and Madinah within the limits set by the forthcoming regulations. Foreign-owned companies and investment funds will have the right to acquire property required for business operations, staff housing, and commercial facilities, subject to regulatory clearance. Diplomatic missions will be allowed to buy premises, provided the Ministry of Foreign Affairs approves the acquisition and reciprocity exists with the foreign mission’s home country.

The implementation of the law will involve 13 government agencies, and an inter-agency advisory committee will monitor compliance and recommend adjustments as needed. REGA is preparing the maps that will define the designated ownership zones across the Kingdom, including the rules for cities such as Riyadh, Jeddah, Makkah, Madinah, and other governorates. These maps, along with the executive regulations, are expected to shape how foreign ownership will be practised once the law takes effect.

Analysts and media reports suggest that this reform will attract global investors, expand the real estate market, support large-scale development, and increase liquidity. It marks the beginning of a new phase in Saudi Arabia’s investment landscape and underscores the Kingdom’s commitment to economic diversification under Vision 2030.