In a historic move, Saudi Arabia has announced that foreigners will be allowed to purchase real estate in specific areas of the country for the first time. This new policy, set to come into effect in January 2026, marks a significant shift in the Kingdom’s long-standing restrictions on foreign ownership.
Previously, non-Saudi individuals were not permitted to own property or invest directly in Saudi real estate. However, under the new law, foreign nationals will be allowed to buy property in designated zones within major cities like Riyadh and Jeddah. The law is part of broader efforts to boost foreign investment and expand the Kingdom’s real estate sector.
According to Gulf News, the new legislation was approved by the Saudi Cabinet and praised by Majid Al-Hogail, Minister of Municipal and Rural Affairs and Chairman of the General Authority for Real Estate. He described it as a continuation of the Kingdom’s comprehensive real estate reform agenda.
However, property ownership in the holy cities of Makkah and Madinah will remain tightly regulated, with additional conditions and oversight. The General Authority for Real Estate will have the authority to identify eligible zones for foreign investment and implement the policy through public consultation over the next 180 days.
This initiative aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy beyond oil and turn the country into a global investment hub. The new law also complements existing regulations related to premium residency and real estate rights for GCC nationals, reflecting the Kingdom’s evolving approach to global integration and economic modernization.