Non-Saudis may own real estate in the Kingdom under the Law of Real Estate Ownership by Non-Saudis, in force since 21 January 2026. Ownership is permitted within geographic zones designated by the Council of Ministers, with a limited exception allowing resident individuals one residential property outside those zones. Makkah and Madinah remain restricted.
Introduction
Saudi Arabia has officially opened a new chapter in its real estate sector. As of 21 January 2026, the long-anticipated Foreign Property Ownership Law is now in force — representing a pivotal change in the Kingdom’s legal framework for international investors.
This reform is a key component of Vision 2030. Vision 2030 seeks to diversify the national economy, attract global capital and introduce regulatory reforms. At the same time, it aims to protect national interests.
Who Can Own Property in Saudi Arabia Under the New Law?
With the law now in force, foreign individuals and foreign-owned entities are officially permitted to own real estate in Saudi Arabia. This is subject to the conditions set out in the implementing regulations accompanying the new legal framework.
On 23 June 2026, the Council of Ministers approved the Implementing Regulations and endorsed the geographic areas designated for non-Saudi ownership. The framework is no longer prospective. What now applies:
- Designated zones. The Real Estate General Authority (REGA) has published a map of the areas where foreign ownership is permitted. Non-Saudis may acquire property rights only inside those zones.
- One digital platform. Registration, payment, and title issuance all run through a central REGA platform, replacing the old case-by-case approval system.
- The resident exception. A non-Saudi individual living in the Kingdom may own one residential property outside the designated zones.
- Companies. Saudi-incorporated non-listed companies with foreign owners may own property outside the zones, excluding Makkah and Madinah, for specified purposes.
- Makkah and Madinah. Restrictions in the two holy cities remain.
These changes are especially relevant in the case of:
- Institutional investors looking to invest in the long term in Saudi real estate;
- International businesses interested in opening or expanding physical activities;
- High Net Worth Individuals looking for residential or strategic investment properties
Where Can Foreigners Buy Property in Saudi Arabia?
The entry into force of this law reflects Saudi Arabia’s aim to continue to incorporate global investment in the real estate sector. At the same time, the country seeks to retain structured oversight in line with its development goals.
Ownership is geographic before it is anything else. A buyer’s first question is not what to purchase but whether the location falls inside a designated zone, because eligibility follows the map rather than the property. The resident exception softens this for individuals living in the Kingdom, who may hold one residential property outside the zones, but it does not extend to non-resident buyers or to investment portfolios.
Conclusion
Saudi Arabia’s property market is now open to non-Saudis, but on clear terms. Ownership follows the map: buyers may acquire inside the zones designated by the Council of Ministers, residents may hold one home outside them, and Makkah and Madinah stay restricted. Every purchase is registered through REGA’s single platform, which replaces the old case-by-case approvals with one transparent process.
For foreign buyers, the practical work now happens before the offer, not after it. Confirming that a property sits inside an eligible zone, choosing the right ownership structure, and completing registration correctly are what turn a purchase into secure title. Our real estate team advises international clients on each of those steps. For customized legal consultation, please contact us at info@ahysp.com.
FAQ
Yes, within the zones designated by the Council of Ministers. A non-Saudi individual residing in the Kingdom may additionally own one residential property outside those zones for personal use.
Ownership in the two holy cities remains restricted, and the Implementing Regulations retain those protections. Saudi-incorporated non-listed companies with foreign owners are also excluded from acquiring property outside the designated zones in Makkah and Madinah.
No. The law permits ownership by non-resident individuals and foreign entities within designated zones. The single-property exception outside those zones applies only to residents.
Registration is a condition of legal effect. Penalties apply for breach, and property acquired on the basis of false information may be sold at public auction.
Every acquisition must be registered through the Real Estate General Authority platform, and transfer fees and taxes apply on registration. The applicable rates are set under the Implementing Regulations and vary by transaction type, so the exact cost should be confirmed for each purchase before signing.
Key Takeaways
- Saudi Arabia has implemented the Foreign Property Ownership Law as of January 21, 2026, allowing foreign investors to own real estate.
- This law is part of Vision 2030, aiming to diversify the economy and attract global capital.
- Foreign individuals and entities can now own real estate, under specific conditions and regulations outlined in the new legal framework.
- The law defines eligible property types and investment zones, as well as ownership structures and processes for foreign investors.
- AHYSP Law Firm offers assistance with legal assessments, transaction structuring, and compliance regarding the new foreign property ownership regime.
