Introduction
Starting from January 2026, foreigners can buy property in specific zones throughout Saudi Arabia. This is the result of the new Saudi Cabinet approval of a Saudi Real Estate Law which was passed in July 2025. The change marks an important milestone for the Kingdom’s Vision 2030 economic diversification plan.The law aims to attract foreign direct investment, increase real estate supply, and contribute to the growth of the non-oil economy.
The Real Estate General Authority (REGA) has been mandated to define the specific geographical zones where foreigners can buy property. These executive regulations are expected to be published for public consultation on the “Istitlaa” platform within 180 days of the law’s official publication in the Umm Al-Qura Gazette. These regulations will provide the precise details regarding eligibility, application procedures, and compliance.
Riyadh Property
The new Saudi Real Estate Law explicitly names Riyadh Property as one of the main places where foreigners are allowed to buy property. Riyadh, as a capital and an important economic center, is undergoing a lot of urban development. It is anticipated that foreign residents with a valid Iqama, or those with a Premium Residency, will be permitted to buy residential Riyadh Property for their personal use.
For foreign companies, the law permits the acquisition of real estate necessary for their licensed professional, vocational, or economic activities, including office spaces and employee housing. For commercial real estate projects in Riyadh, there is said to be a minimum investment cap of SAR 30 million along with the condition that the project must be completed and operational within five years from the date of purchase. Such stipulations aim to ensure that foreign investments into the Saudi Arabia Real Estate industry foster impactful growth.
Jeddah Property
Jeddah Property is also designated as a key area where foreigners can buy property under the new law. Jeddah is a port city with great significance for trade and tourism. The new Saudi Real Estate Law is expected to open new investment opportunities for foreigners which in turn may accelerate development of the residential, commercial, and hospitality sectors in the city.
Just like with Riyadh, the criteria for buying Jeddah Property will probably be available to foreign persons with a legal residency and foreign firms with the requisite permits. Types of zones and properties open for foreign investors in Jeddah will be specified in the forthcoming regulations by REGA. This is aimed at improving Jeddah’s position in the Saudi Arabia Real Estate market.
Makkah Property: Restricted Access with Specific Conditions
While the headline mentions Makkah Property, the new Saudi Real Estate Law includes special conditions for property ownership in the holy city. Ownership of non-Muslim foreigners remains especially limited due to the city’s religious significance. Nevertheless, the law appears to aim at granting some foreign participation to Muslims and under particular conditions.
As per the reports, foreign Muslim individuals could legally own Makkah Property in very rare situations, like through succession or established religious endowment (Waqf). Moreover, certain areas connected to major development initiatives designed to benefit pilgrims may offer long-term leases, possibly for 99 years. Foreign investment could also occur, albeit indirectly and subject to limits on foreign ownership, through equity stakes in publicly owned companies that possess property within Makkah.
The precise framework for foreigners can buy property or acquire long-term rights in Makkah will be defined in REGA’s executive regulations.
The New Saudi Real Estate Law
The implementation of this Saudi Real Estate Law is a direct outcome of Saudi Arabia’s Vision 2030 objectives. By enabling foreigners can buy property, the Kingdom seeks to:
Attract Foreign Direct Investment (FDI):
International investors finding an opportunity to directly own real estate property gives them incentive to invest in different parts of Saudi Arabia Real Estate.
Increase Real Estate Supply:
This law aims to stimulate new development and construction activities to enhance the supply of residential and commercial properties.
Contribute to Non-Oil Economy:
Such an effort seeks to enhance the contribution of the sector towards the national GDP, while supporting the long-term economic diversification strategy.
Regulatory Oversight and Implementation
The new Saudi Real Estate Law is scheduled to become effective in January 2026. Up to this date, REGA is scheduled to publish the comprehensive executive regulations which includes the eligibility requirements, zones, and the entire procedural framework for applications. These will be available for public comment on “Istitlaa.”
The provisions allow REGA alongside the Ministry of Investment and the Ministry of Interior to evaluate the law’s effectiveness on real estate pricing, supply, and market equilibrium, thus continuously impacting the price, supply, and general stability of the market. This is to make certain that the law is functioning as intended while also considering the well-being of citizens of Saudi Arabia. Foreigners purchasing property will need to submit applications vetted by the government, and approvals are likely to be issued via digital systems such as Absher with registration under REGA.
