In a historic move, Saudi Arabia is preparing to open its property market to foreign buyers starting in January 2026. This development aims to reshape real estate acquisition for non-Saudis, who will soon have new opportunities to invest in the Kingdom’s growing economy. The decision represents a significant departure from previous restrictions, providing greater access while also maintaining certain controls. As Saudi Arabia opens its property market to foreign buyers in 2026, the new regulations are poised to enhance the appeal of the nation as a destination for international investment.
According to a report by the Saudi Gazette, the forthcoming legislation will enable foreigners to own residential properties in numerous Saudi cities. However, restrictions will remain in four key locations: Makkah, Madinah, Jeddah, and Riyadh. These changes form part of broader initiatives aimed at attracting foreign investment and promoting economic diversification throughout the Kingdom.
Majed Al-Hogail, the Minister of Municipalities and Housing, emphasized that the new regulations would broaden access to residential ownership while ensuring oversight in sensitive areas. Under the new framework, foreign residents will be allowed to own one residential unit, while non-residents can purchase property only in designated zones approved by local authorities.
While residential ownership for foreigners will generally be accepted throughout Saudi Arabia, the four aforementioned cities will remain exceptions. In Makkah and Madinah, property ownership is restricted exclusively to Muslims. Nevertheless, it is possible that ownership by non-residents will soon be authorized in specific zones within these traditionally restricted areas.
Saudi Revamps Real Estate Ownership Laws
The new regulations take a more liberal stance regarding non-residential properties. Foreigners will be permitted to own commercial, industrial, and agricultural real estate in all Saudi cities without exceptions, indicating a commitment to facilitating business activities and fostering long-term investments.
The updated legal framework outlines specific geographic limitations, ownership guidelines, and regulatory prerequisites. Non-Saudis will have the opportunity to own property or gain real rights only in areas sanctioned by the Council of Ministers. These approvals will be based on recommendations from the Real Estate General Authority and affirmed by the Council of Economic and Development Affairs. Specifically designed regulations will govern the types of permissible properties, ownership ratios, and related conditions.
Ownership rules will also differ based on the structure of the entities involved. Non-listed companies with foreign ownership can acquire properties within approved zones, including Makkah and Madinah, as long as they comply with Saudi company law. They may also own property beyond these zones for operational needs or employee housing, adhering to established regulations.
Listed enterprises, investment funds, and special-purpose entities will be authorized to own property throughout the Kingdom, including in the holy cities, subject to controls enforced by the Capital Market Authority in collaboration with other regulatory bodies.
Mandatory registration of foreign property ownership with the Real Estate Registry will be required. A transaction fee as high as 5% of the property’s value will be implemented, with further details outlined in subsequent executive regulations. Owners found in violation of these rules could face fines or warnings, and providing false information could result in severe penalties, including fines up to SR10 million and possibly a court-ordered sale of the property.