In a landmark move to boost foreign investment and stimulate the real estate sector, Saudi Arabia has officially allowed foreign individuals and companies to buy and own property across the Kingdom, effective January 2026.
The new legal framework marks a significant departure from previous regulations, which had severely restricted property ownership by non-Saudis.
Under the law, foreigners can now acquire residential, commercial, industrial, and agricultural properties, with certain conditions applied to sensitive areas.
Residential Ownership Rules
Foreign residents living in Saudi Arabia are permitted to own one residential property outside specific restricted zones.
The holy cities of Makkah and Madinah remain off-limits for most non-Muslim buyers, with ownership in these areas subject to special conditions. Non-resident foreigners can also purchase residential properties, but only in locations approved by the Council of Ministers in coordination with the Real Estate General Authority.
Commercial and Investment Opportunities
The new law grants broad access for foreign investors to acquire commercial, industrial, and agricultural properties across all cities, without the limitations imposed on residential ownership.
This includes investment through companies, funds, and other entities, positioning Saudi Arabia as an attractive destination for international capital.
Registration and Compliance
All foreign buyers must register properties with the official Real Estate Registry. Transactions are subject to fees—typically up to 5% of the property value—and non-compliance can lead to fines, penalties, or forced sale of properties. The regulations aim to ensure transparency and safeguard both investors and the domestic real estate market.
Strategic Significance
This reform aligns with Saudi Arabia’s Vision 2030 economic diversification plan and reflects the Kingdom’s drive to attract global investors. By opening up its real estate market, Saudi Arabia is signaling its commitment to economic liberalization and creating new opportunities for foreign capital.
With these measures, analysts expect a surge in foreign investment, greater competition in the property market, and enhanced opportunities for innovation in Saudi Arabia’s housing and commercial sectors.
