Saudi Arabia Allows Foreigners to Buy Property from 2026

• Foreigners can own residential and commercial property from January 2026

• Makkah and Madinah remain restricted to Muslim ownership only

• Registration mandatory; violations may attract fines up to SR10 million

Riyadh: Saudi Arabia has formally implemented a landmark reform that allows foreigners to own property in the Kingdom, signalling a major shift in its real estate and investment landscape. The new ownership law, effective from January 2026, opens residential, commercial, industrial, and agricultural real estate to non-Saudis, subject to clearly defined conditions and geographic limitations.

The reform, earlier announced by Minister of Municipalities and Housing Majed Al-Hogail, is part of Saudi Arabia’s broader economic transformation agenda aimed at attracting global investment while maintaining regulatory oversight in sensitive locations.

Where Foreigners Can Buy Homes

Under the new framework, foreign residents living in Saudi Arabia are permitted to own one residential property outside designated ownership zones. However, residential ownership is not allowed in Makkah and Madinah, where property ownership remains restricted exclusively to Muslims.

In addition, residential ownership by foreigners is not permitted in Jeddah and Riyadh, placing these four cities outside the scope of open residential ownership for non-Saudis.

For non-resident foreigners, residential property ownership is allowed only within specific zones approved by the Saudi authorities. These zones will be identified by the Council of Ministers, based on recommendations from the Real Estate General Authority and approvals from the Council of Economic and Development Affairs. This ensures foreign residential ownership remains regulated and aligned with national planning priorities.

Commercial, Industrial, and Agricultural Properties

In contrast to residential rules, the law is more flexible for commercial, industrial, and agricultural properties. Foreigners—both individuals and companies—are allowed to own such properties in all Saudi cities without exception, making the Kingdom significantly more accessible for international businesses and investors.

Foreign-owned non-listed companies established under Saudi company law may own property within approved zones, including in Makkah and Madinah. They are also allowed to acquire property outside these zones if it is required for business operations or employee housing, subject to regulatory guidelines.

Meanwhile, listed companies, investment funds, and special-purpose entities are permitted to own property across the Kingdom, including the holy cities. Their ownership will be governed by regulations issued by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant bodies.

Mandatory Registration and Transaction Fees

The law introduces mandatory registration for all foreign property owners. Ownership rights will be legally recognised only after registration in the official Real Estate Registry, strengthening transparency and legal clarity in property transactions.

Foreign buyers will also be subject to a property transaction fee of up to 5% of the property value. Detailed fee structures and implementation rules will be specified in the executive regulations.

Importantly, the law clarifies that owning property does not grant additional residency or citizenship rights beyond those explicitly defined. It also does not alter benefits available under other frameworks, including the Premium Residency Program or existing GCC agreements.

Penalties and Enforcement

To ensure compliance, the law introduces strict penalties for violations. Authorities may issue warnings or impose financial penalties, while cases involving false or misleading information can attract fines of up to SR10 million. In serious violations, courts may also order the sale of the property.

A Strategic Shift for Saudi Real Estate

The introduction of foreign property ownership marks a significant evolution in Saudi Arabia’s real estate framework. While maintaining safeguards around culturally and religiously sensitive locations, the law provides structured access for global investors and residents, positioning the Kingdom as a more open and regulated property market ahead of 2030.