The Saudi cabinet’s recent approval of a law on property ownership by non-citizens marks a significant step for the Kingdom, poised to enhance its real estate sector and attract foreign investment. This updated legislation, which allows non-Saudis to acquire property in various locations, including the sacred cities of Makkah and Madinah under certain conditions, is set to take effect in January 2026.
The Cabinet, led by Crown Prince and Prime Minister Mohammed bin Salman, has mandated the Real Estate General Authority to delineate areas where non-Saudis can own real estate or acquire property rights. This initiative will not only streamline the process but also engage the community, as the authority plans to gather public feedback on the executive regulations through the Istitaa public survey platform within 180 days of the law’s announcement in the official Umm Al-Qura Gazette.
Saudi Arabia‘s Strategic Update on Foreign Property Ownership
According to Majed Al-Hogail, Minister of Municipalities and Housing and Chairman of the Real Estate General Authority, the cabinet’s approval of the updated law is expected to boost real estate supply. By enticing investors and development firms, the government aims to foster a vibrant market conducive to international participation. “The law takes into account all economic and investment aspects, as ownership will be permitted within specific geographic areas, particularly in the cities of Riyadh and Jeddah, with special requirements for ownership in Makkah and Madinah,” Al-Hogail noted.
Furthermore, Al-Hogail emphasized that the new legislation prioritizes the interests of Saudi citizens, featuring mechanisms to ensure market control and adherence to procedures aimed at achieving a balanced real estate sector. The updated regulations will stipulate the processes through which non-Saudis can obtain property rights, along with the requirements for enforcing these provisions.
Broader Economic Implications
Dr. Essam bin Saeed, Acting Minister of Media, commented that the law on property ownership by non-citizens is part of a larger strategy to invigorate economic growth while preserving social equilibrium and market stability. This approach reflects Saudi Arabia’s vision to diversify its economy and enhance its attractiveness for foreign investors.
The cabinet meeting also included a review of Saudi Arabia’s active role in global economic growth, reaffirming its dedication to multilateral cooperation and stability in various markets. This encompasses ongoing collaborations with oil producers within the OPEC+ framework, aimed at maintaining balance in the petroleum market.