Agencies
Riyadh
Saudi Arabia is set to introduce a new legal framework governing foreign property ownership from January 2026, marking a significant shift in how non-Saudis can acquire real estate rights across the Kingdom.
Residential ownership will be permitted nationwide, except in four major cities, namely, Makkah, Madinah, Jeddah, and Riyadh.
Minister of Municipalities and Housing Majed Al-Hogail, as quoted by the Saudi Gazette, explained the move, saying, “Residential ownership by foreigners will be permitted across the Kingdom, with four notable exceptions.” He also noted that specific areas within the restricted cities could later be designated where foreigners may purchase property, subject to official approval.
Unlike residential holdings, commercial, industrial, and agricultural properties will be fully open to foreign ownership throughout Saudi Arabia, reflecting the government’s push to attract foreign investment and boost economic growth.
To ensure transparency and compliance, the law sets out clear registration rules, fees, and penalties.
All property transactions will need registration with the Real Estate Registry, and violators could face fines of up to SR10 million ($2.67 million) or even court-ordered sale of the property in severe cases.
Al-Hogail stressed on the safeguards, stating, “The framework ensures that foreign ownership does not grant additional privileges beyond those defined by law.”
The new legislation aligns with Saudi Arabia’s broader vision of encouraging international investment while maintaining strict oversight, balancing economic opportunity with regulatory control. Many say this could be a game-changer for the Kingdom’s property market, opening doors for global investors while preserving key areas for domestic stakeholders.
The updated system aims to regulate foreign real estate ownership by setting clear geographic boundaries, ownership limits, and legal controls.
Non-Saudis will be permitted to own property or acquire real rights only within areas designated by the Council of Ministers, based on recommendations from the Real Estate General Authority and approval from the Council of Economic and Development Affairs. These approvals will define the types of real rights allowed, maximum ownership ratios, and related conditions.
Non-listed companies with foreign ownership may own property within the approved geographic zones, including Makkah and Madinah, provided they are established under Saudi company law.
They may also own property outside those zones for business operations or employee housing, as defined by regulations.
Listed companies, investment funds, and special-purpose entities will be allowed to own property across the Kingdom, including the holy cities, subject to controls issued by the Capital Market Authority in coordination with the Real Estate General Authority and other regulators.
