Saudi Arabia to Allow Foreign Property Ownership from 2026 Under New Law

Riyadh: Saudi Arabia will allow foreigners to own property in the Kingdom starting in 2026 under a new Real Estate Ownership and Investment Law, according to official sources. The move marks a major shift in the country’s property regulations as it seeks to attract foreign investment and support economic diversification.

Under the new law, non-Saudis will be permitted to purchase property across most parts of the Kingdom. However, ownership will remain restricted in four major cities, including Makkah and Madinah, where special regulations will continue to apply due to their religious significance. Details regarding the remaining restricted locations have not yet been fully disclosed.

The legislation is part of Saudi Arabia’s broader reform agenda under Vision 2030, aimed at opening key sectors to international investors and strengthening the non-oil economy. Authorities say the move will enhance transparency, improve market efficiency and increase foreign participation in the real estate sector.

Officials noted that the law is designed to balance investor access with national priorities, ensuring that foreign ownership supports sustainable development and urban planning goals. The new framework is expected to create fresh opportunities across residential, commercial and mixed-use developments.

Saudi Arabia has already introduced a series of regulatory reforms in recent years, including improved digital governance, clearer property registration processes and incentives for real estate development. The foreign ownership law is seen as a key step toward positioning the Kingdom as a competitive global real estate investment destination.

The government is expected to release further implementation guidelines ahead of the law’s enforcement in 2026.