Saudi Arabian Property Market Opens to Foreign Buyers Under New Law

Saudi Arabia will formally open parts of its real estate market to foreign buyers on January 21st, 2026, following the enactment of the long-awaited Law on Non-Saudis’ Ownership of Real Estate. Approved by royal decree in 2025, the legislation allows non-Saudis to acquire residential, commercial, industrial, and agricultural property within designated zones, marking one of the Kingdom’s most significant structural reforms in decades.

The law introduces a designated-zone model, with major economic centres such as Riyadh, Jeddah, and parts of the Eastern Province expected to be included. Outside these zones, ownership remains restricted, with Mecca and Medina retaining strict limitations for non-Muslims and foreign entities. Foreign residents may acquire one personal residence outside designated zones, while non-residents are limited to the approved areas.

New compliance obligations accompany the reform, including transfer taxes of up to 10%, minimum investment thresholds of SAR 30 million for certain activities, and mandatory registration with the national real estate registry. Violations can result in fines of up to SAR 10 million or forced property sales, with enforcement overseen by a specialised REGA committee.

Corporate and institutional investors are among the key beneficiaries. Foreign companies, investment funds, and non-profits may acquire property in designated zones to support operations, while Saudi companies with foreign shareholders can access properties according to their status. Diplomatic missions and accredited international organisations are also permitted to own premises for official use.