Saudi Arabia is set to transform its real estate market with a landmark legal reform allowing non-Saudi individuals and entities to own property in the Kingdom beginning January 2026. This strategic shift is expected to unlock new opportunities for global investors, align with Vision 2030, and position Saudi Arabia as an attractive destination for real estate investment.

What the New Law Changes

The updated Law of Real Estate Ownership by Non-Saudis, issued by Royal Decree in July 2025, introduces a structured legal framework under which foreigners may acquire real estate rights in Saudi Arabia starting January 2026.

Key features include:

• Designated Zones for Ownership

Foreign investors can acquire property rights only within areas that will be officially designated by the Saudi government and the Real Estate General Authority (REGA). Initial indications point to major urban markets such as Riyadh and Jeddah being among the first zones opened to foreign buyers. 

• Eligibility for Individuals and Entities

Both non-Saudi individuals (residents and non-residents) and foreign companies, investment funds, and special-purpose vehicles may own property in these zones — whether for personal residence, commercial use, or investment. 

• Restrictions and Prioritization

Sensitive cities such as Makkah and Madinah will retain special conditions due to cultural and regulatory considerations. Ownership in those cities will be subject to specific rules and approvals. 

• Registration and Compliance

All foreign ownership must be registered with the Real Estate Registry through official platforms such as the newly announced “Saudi Properties” gateway, ensuring transparency and legal recognition. 

• Fiscal and Regulatory Controls

The law introduces provisions for transaction fees, ownership limits within zones, and compliance procedures to ensure balanced market participation. 

What This Means for Investors

For global investors — whether institutional funds, foreign real estate firms, or individual buyers — these changes signal a major opening of one of the Gulf’s largest property markets.

Key investor considerations:

• Early entry into high-growth Saudi urban markets

• Ability to hold residential, commercial, industrial, and agricultural land rights

• Clear legal framework and regulatory oversight

• Potential for rental income, capital appreciation, and diversified portfolios

This reform aligns with Saudi Arabia’s ongoing economic diversification under Vision 2030, aimed at enhancing foreign direct investment (FDI), expanding the real estate sector’s contribution to GDP, and improving urban living standards. 

For individuals planning to live, work, or retire in Saudi Arabia:

• Long-term property ownership becomes a reality

• Ownership is expected to be permitted both on-plan and in existing developments (subject to zone designation)

• Buyers should consult property advisors early to explore prime locations and compliance requirements

Pro Notes Before Investing

• Final zone definitions and maps are expected from the Real Estate General Authority ahead of the law’s implementation.

• Ownership conditions in Makkah and Madinah remain restricted and require special approval.

• Registration and fee structures — including potential taxes and transfer fees — will be part of executive regulations once published.

Basri Real Estate’s Outlook

At Basri Real Estate, we view this development as a game-changing opportunity for international capital and buyer diversification. Our team is closely monitoring the rollout of regulations and is ready to support investors and buyers with personalized insights, market research, and acquisition strategies.

Want to invest or buy in Saudi Arabia?

Contact Basri Real Estate today to explore opportunities, understand zone designations, and prepare your investment strategy ahead of January 2026.