Saudi Arabia to Open Real Estate Market to Foreign Investors in 2026

Starting January 2026, Saudi Arabia will implement a new legal structure permitting foreign individuals to acquire property within the Kingdom. The regulations precisely outline the areas foreigners can target, the types of properties they can buy, and the limitations involved. This development aims to attract investment while ensuring clarity in the regulatory landscape.

Foreign nationals will be allowed to own residential properties in various Saudi cities, with exceptions for key locations including Makkah, Madinah, Jeddah, and Riyadh. There is potential for designated zones within these cities to allow property ownership in the future. Outside these specified areas nationwide, non-Saudi residents can hold ownership of one residential property, while Makkah and Madinah will remain reserved strictly for Muslim ownership. Non-residents are restricted to purchasing in designated areas only.

Additionally, the law opens the door for foreign ownership of commercial, industrial, and agricultural real estate across all Saudi cities without restrictions. This initiative aims to stimulate foreign investment, promote business expansion, and enhance agricultural activity throughout the Kingdom.

Legal safeguards will define property ownership limits, geographical boundaries, and types of rights applicable to real estate. The Council of Ministers, upon advice from the Real Estate General Authority, will establish ownership ratios and relevant criteria. The law ensures that foreign buyers do not gain undue advantages or infringe upon existing programs, including the Premium Residency Program and agreements within the Gulf Cooperation Council.

All foreign individuals and corporations must complete registration with the relevant authorities. Ownership will only be recognized once duly recorded in the Real Estate Registry. A transaction fee of up to 5% of the property's value will be applied as set out in executive regulations.

Breaches of this legislation may incur fines or warnings. Providing fraudulent information can result in penalties up to SR10 million, or in severe cases, a court-mandated sale of the property.

Through these measures, Saudi Arabia seeks to broaden its real estate market access for foreign investors while ensuring controlled, transparent, and completely regulated growth in both residential and commercial properties.