Saudi Arabia to Allow Non-Saudis to Own Real Estate from January 2026
Saudi Arabia is set to implement a new law in January 2026, allowing non-Saudis to legally own real estate. The law outlines eligibility, fees, and penalties, aiming to stimulate investment and align with Vision 2030.
Real EstateSaudi ArabiaNonsaudisProperty OwnershipVision 2030Real EstateNov 07, 2025
Specific required documents and exact locations where non-Saudis may acquire property have not yet been disclosed and will be published by the Real Estate General Authority (REGA) in due course.
Ownership Requirements and Categories
According to the report, non-Saudis will be permitted to own only registered properties, and all relevant data and information must be disclosed as part of the ownership process. This measure is intended to ensure transparency, regulatory compliance, and alignment with Saudi Arabia’s broader economic and social objectives. Eligible ownership categories, as outlined in the document, include:
- Non-Saudi individuals
- Non-Saudi companies
- Saudi companies in which a foreigner holds shares
- Non-profit entities
- Diplomatic missions
Ownership in Mecca and Medina has additional restrictions:
- Only Muslims and Saudi companies are permitted to own or hold usufruct rights in specific zones, as defined by the forthcoming geographical zones document.
Fees, Taxes, and Penalties
The law introduces financial obligations and penalties to regulate non-Saudi ownership:
- Fees and taxes: Ownership by non-Saudis will incur 10% in combined fees and taxes, including the real estate transaction tax and administrative fees.
- Penalties for violations: Fines can reach SR 10 million.
- Misleading information: Properties acquired using false or misleading data will be sold at public auction.
Geographical Zones and Oversight
REGA is expected to soon publish a document detailing the geographical zones in which non-Saudis may own property. This will cover:
- Riyadh, Jeddah, Makkah, Madinah
- All other cities and governorates of Saudi Arabia
- Permitted ownership percentages, types of rights, grace periods, and regulatory procedures
Oversight and implementation will involve 13 government agencies, including an advisory committee to monitor the law’s progress, provide performance reports, and recommend adjustments as necessary. The system integrates with the Premium Residency System, GCC property ownership rules, and other preferential regulations for investment.
Economic Impact and Objectives
Updating the system for non-Saudi ownership of real estate is aimed at:
- Stimulating investment in the real estate sector, which supports over 120 economic activities
- Enhancing housing availability and providing job opportunities
- Promoting fair, safe, and balanced investment, in line with Vision 2030
- Maintaining citizens’ access to property and ensuring market stability
- Aligning with international best practices, including benchmarking against G20 countries and other advanced regulatory systems
The law and its forthcoming executive regulations are designed to ensure that foreign ownership contributes to sustainable urban growth, economic diversification, and the overall quality of life in Saudi cities.
Frequently Asked Questions
When will the new law allowing non-Saudis to own real estate in Saudi Arabia take effect?
The new law will take effect on January 2026.
What are the eligible categories for non-Saudi property ownership in Saudi Arabia?
Eligible categories include non-Saudi individuals, non-Saudi companies, Saudi companies in which a foreigner holds shares, non-profit entities, and diplomatic missions.
What are the fees and taxes for non-Saudi property ownership in Saudi Arabia?
Non-Saudi property ownership will incur 10% in combined fees and taxes, including the real estate transaction tax and administrative fees.
What are the penalties for violating the new law?
Penalties for violations can reach SR 10 million, and properties acquired using false or misleading data will be sold at public auction.
What are the main economic objectives of the new law?
The main economic objectives include stimulating investment in the real estate sector, enhancing housing availability, providing job opportunities, promoting fair and balanced investment, maintaining market stability, and aligning with international best practices.
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