Saudi Arabia has enacted a landmark legal reform that will allow non-Saudi individuals and foreign companies to own real estate in designated areas across the Kingdom beginning January 2026. The introduction of the new Law of Real Estate Ownership by Non-Saudis marks one of the most significant regulatory shifts in the Kingdom’s property market and underscores the government’s ongoing commitment to economic diversification and investment openness under Vision 2030.
The new law expands eligibility beyond previous restrictions, enabling foreigners—whether residents, non-residents, or legal entities—to purchase property in zones that will be defined through upcoming executive regulations. These areas are expected to include major metropolitan centres, strategic economic zones, and select tourism and development regions aligned with national priorities. In addition, foreign residents may be permitted to own a primary residence outside these designated zones, subject to specific conditions and approvals.
A Transformative Policy Shift for Investment and Urban Development
While the reform significantly broadens access, restrictions remain in highly sensitive areas such as Makkah and Madinah. However, the law provides pathways for foreign participation in approved hospitality, tourism, and development projects within those regions, ensuring alignment with cultural, regulatory and security considerations. All foreign property acquisitions will require formal registration, and the government retains authority to impose taxes or transfer fees of up to 5 percent on real-estate transactions.
The policy change is designed to stimulate foreign investment, deepen liquidity in the real-estate market, and accelerate the development of high-impact urban, economic and tourism projects. It also aligns with broader national objectives to diversify non-oil GDP, enhance competitiveness, and position Saudi Arabia as one of the Middle East’s most attractive real-estate investment destinations. Further details—covering designated zones, ownership limits, operational procedures, and compliance frameworks—are expected to be released in the coming months.
Source: Saudi Government Gazette / Official announcements
