Saudi Opens Property Market Wider: New Foreign Ownership Law Approved, Boosting Investment from 2026
Saudi Arabia Greenlights Landmark Foreign Property Ownership Law Effective 2026
Saudi Arabia has taken a significant step to liberalize its real estate market. The Cabinet, under directives from Custodian of the Two Holy Mosques King Salman and Crown Prince Mohammed bin Salman, has approved a pivotal update to the law permitting property ownership by non-Saudis, effective January 2026.
Minister Al-Hogail: Law Fuels Investment & Sector Growth
Majed Al-Hogail, Minister of Municipalities and Housing and Chairman of the Real Estate General Authority (REGA), expressed gratitude to the leadership. He stated this approval builds upon existing real estate legislation, aiming to:
Develop the Saudi real estate sector significantly.
Attract foreign direct investment (FDI) into the Kingdom.
Increase real estate supply by drawing international investors and developers.
Balancing Foreign Investment with Citizen Protection
Minister Al-Hogail emphasized the law carefully safeguards Saudi citizens’ interests. It includes:
- Robust market control mechanisms.
- Specific compliance procedures.
- Measures to achieve sustainable real estate market balance.
Geographic Focus: Riyadh & Jeddah Open, Special Rules for Makkah & Madinah
The law strategically permits non-Saudi ownership within specific geographic areas:
Riyadh and Jeddah will be key focus cities.
Ownership in Makkah and Madinah will be subject to special requirements, respecting their unique religious status.
Regulations to Cover Procedures & Requirements
The forthcoming REGA regulations will specify:
Procedures for non-Saudis to acquire property rights in KSA real estate.
Requirements for enforcing the law on non-Saudis.
Comprehensive implementation details, considering economic and social impacts.
REGA to Define Zones & Launch Public Consultation
Key implementation details:
REGA will propose the exact geographic zones for foreign ownership.
Executive regulations will be published on the Istitaa public survey platform within 180 days of the law appearing in the Umm Al-Qura Gazette.
This crucial 180-day public consultation seeks viewpoints and suggestions from stakeholders.
Alignment with Existing Residency & GCC Frameworks
The updated law is consistent with:
The Saudi Premium Residency Law.
Regulations governing real estate ownership by GCC citizens in member states.
Other applicable laws granting non-Saudis property rights privileges.
Interested in understanding how Saudi Arabia’s new foreign property ownership law impacts your investment or residency plans?
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