Saudi Arabia to open property market to foreign buyers in 2026

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.

According to a report by the Saudi Gazette, the updated law will allow foreigners to own residential property in most Saudi cities, with restrictions remaining in four locations: Makkah, Madinah, Jeddah and Riyadh. The changes form part of broader efforts to attract investment and support economic diversification.

Majed Al-Hogail, Minister of Municipalities and Housing, said the new system would expand access to residential ownership while maintaining controls in sensitive areas. Under the framework, foreign residents will be permitted to own one residential unit, while non-residents will be able to purchase property only in zones specifically designated by the authorities.

Residential ownership by foreigners will be allowed nationwide with the exception of the four excluded cities, although ownership by non-residents may later be permitted in approved zones within those areas. In Makkah and Madinah, residential ownership will remain restricted to Muslims only.

Saudi revamps real estate ownership laws

The law takes a more liberal approach to non-residential property. Foreigners will be allowed to own commercial, industrial and agricultural real estate in all Saudi cities without exception, signalling wider access for business activity and long-term investment.

The updated framework sets out clear geographic boundaries, ownership limits and regulatory controls. Non-Saudis will be able to own property or acquire real rights only in areas approved by the Council of Ministers, based on recommendations from the Real Estate General Authority and endorsement by the Council of Economic and Development Affairs. These approvals will define permitted property types, ownership ratios and related conditions.

Rules also vary by ownership structure. Non-listed companies with foreign ownership may acquire property within approved zones, including in Makkah and Madinah, provided they are established under Saudi company law. They may also own property outside these zones for operational purposes or employee housing, subject to regulations.

Listed companies, investment funds and special-purpose entities will be allowed to own property across the Kingdom, including in the holy cities, under controls issued by the Capital Market Authority in coordination with other regulators.

All foreign owners will be required to register their property with the Real Estate Registry. A transaction fee of up to 5 per cent of the property value will apply, with details to be set out in executive regulations. Violations may result in fines or warnings, while submitting false information could lead to penalties of up to SR10 million and, in some cases, a court-ordered sale of the property.