RIYADH: Saudi Arabia will now permit foreigners to own property in certain areas from January 2026, after a landmark decision made by the Saudi Cabinet on July 8, 2025. The new law is part of the kingdom’s efforts to attract foreign investment (FDI) and support its Vision 2030 strategy to shift the economy beyond oil revenue.
Foreigners will be allowed to purchase real estate in designated areas, with an initial focus on major cities like Riyadh and Jeddah. However, owning properties in the holy cities of Mecca and Medina will have stricter rules and special conditions. The Real Estate General Authority will state the geographic limits for foreign ownership and will provide detailed regulations within 180 days of the law’s announcement, utilizing the Estithaa public consultation platform.
The law is brought in with an intention to boost real estate supply, attract international developers, and encourage new capital investments into Saudi urban centres. It also aims to provide more housing options and promote the construction sector, which is already experiencing significant growth. The new system will align with current programs such as the Premium Residency Program and feature procedural protections to safeguard Saudi citizens’ interests and ensure market stability.
This reform is regarded as a significant change in Saudi property policy, making it the first time foreign investors have had the opportunity to legally own property in Saudi Arabia’s major urban areas. This initiative is expected to liberalise the kingdom’s real estate market and solidify its status as a regional investment hub.
