On 25 July, Saudi Arabia published in its official gazette the Law of Real Estate Ownership by Non‑Saudis, which will take effect in early 2026. This legislation replaces the 2000 framework and introduces a more structured system for foreign ownership.

Unlike the previous regime, the new law explicitly allows both resident and non‑resident foreigners — individuals and corporate entities — to acquire property rights in designated zones. This is a significant shift, aligning with the Kingdom’s Vision 2030 strategy to diversify the economy and attract international capital.

Where Foreigners Can Buy

The Council of Ministers, working with the Real Estate General Authority, will determine which areas are open to foreign ownership. While details are still to come, it’s expected that major urban centres such as Riyadh and Jeddah will be included. Sensitive areas like Makkah and Madinah will remain off‑limits.

This zoning approach balances investor access with national priorities, ensuring that growth is channelled into strategic urban hubs.

What Rights Are on Offer

Foreign investors won’t just be limited to outright ownership. The law also provides for:

• Long‑term leaseholds

• Usufruct rights

• Easements and similar interests

In addition, foreign residents will be able to own one residential property outside the designated zones for personal use. Corporate entities — from listed companies to investment funds — can acquire real estate for business operations and staff housing, subject to regulatory approval.

Compliance and Oversight

Every transaction will need to be registered with the national Real Estate Registry to be legally valid. The Real Estate General Authority has also been empowered to impose a transfer fee of up to 5% of the property’s value on disposals by non‑Saudis.

The finer details — including registration procedures, fee structures, and the exact boundaries of permitted zones — will be clarified in the Implementing Regulations, expected within 180 days of the law’s publication.

Why This Matters

For international investors, this reform signals a more open and transparent property market in Saudi Arabia. It creates new avenues for participation in one of the Middle East’s most ambitious urban development programmes, while still maintaining regulatory safeguards.

For Saudi policymakers, it’s another step toward Vision 2030, designed to diversify the economy, attract foreign capital, and stimulate real estate growth.