New Saudi Arabia real estate law: Foreigners can own property from January 2026

In a landmark decision on July 8, the Saudi Cabinet approved an updated system that will allow non-Saudis to own properties in the Kingdom from January 2026.

The new system is part of ongoing reforms aimed at boosting the real estate sector and attracting foreign direct investment. The announcement was made following a Cabinet session chaired by King Salman bin Abdulaziz Al Saud, with the Crown Prince also extending support for the decision.

The update is designed to increase real estate supply and encourage international developers and investors to enter the Saudi market. Foreign ownership will be permitted within defined geographic zones, particularly in Riyadh and Jeddah, subject to specific conditions in sensitive areas such as Makkah and Medinah.

The Real Estate General Authority will define the geographical boundaries and publish the implementing regulations within 180 days on the Estithaa platform (official Umm Al-Qura Gazette). These regulations will outline the procedures, requirements, and safeguards for foreign ownership, ensuring alignment with economic and social goals.

Aligns with existing regulation

The new system will also align with the Premium Residency Programme (Iqama) and the regulation of real estate ownership by Gulf Cooperation Council (GCC) citizens, which permits cross-border property ownership for investment and residential purposes.

A residency system launched in 2019 allowed eligible foreigners to live, work and invest in Saudi Arabia without a local sponsor (kafeel), marking a major shift from the traditional sponsorship system.

Reduce dependency on oil

This move marks a major step in opening Saudi Arabia’s real estate market to global investors, reinforcing the Kingdom’s broader Vision 2030 objectives.

Saudi Vision 2030 is a strategic plan launched in 2016 by Crown Prince Mohammed bin Salman to diversify Saudi Arabia’s economy, reduce its dependency on oil, and transform the Kingdom into a global investment powerhouse and dynamic society.

Target sector

• Increase non-oil government revenue from SAR163 billion to SAR1 trillion
• Raise tourism contribution to GDP from 3 per cent to 10 per cent
• Attract 100 million tourists annually by 2030
• Grow the Public Investment Fund (PIF) to over $2 trillion in assets
• Localise military spending from 2 per cent to 50 per cent
• Create jobs in non-oil sectors and reduce unemployment to 7 per cent
• Increase women’s participation in the workforce to 30 per cent or more
• Enhance digital infrastructure and make Saudi a tech hub

Projects under Vision 2030

1. Neom – A $500 billion futuristic mega-city on the Red Sea
2. The Line – A smart, car-free linear city within Neom
3. Red Sea Project – A luxury tourism destination with sustainable design
4. Qiddiya – A massive entertainment and sports city near Riyadh
5. Diriyah Gate – A cultural and historical development around the birthplace of Saudi Arabia