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Saudi Arabia Opens Property Market to Foreigners from January 2026

Saudi Arabia Opens Property Market to Foreigners from January 2026

Islamabad, July 10, 2025 – Saudi Arabia is on the cusp of a groundbreaking economic transformation, as it officially announced its decision to permit foreign nationals to own property within the Kingdom, effective January 2026. This historic policy shift is a cornerstone of Saudi Arabia’s ambitious Vision 2030, a strategic roadmap designed to diversify its economy, reduce reliance on oil, and attract substantial global investment.

Under the new regulations, a wide spectrum of foreign entities will be granted property ownership rights. This includes expatriates currently residing in Saudi Arabia, international investors, and foreign companies. Crucially, Saudi citizenship will not be a prerequisite for ownership. However, a key aspect of this reform is that buyers will be permitted to invest only in pre-approved zones, with detailed guidelines and a list of eligible areas expected to be released in the coming months.

Initial indications suggest that foreign ownership will be permitted in major urban centers such as Riyadh and Jeddah, alongside other specifically designated development zones. It is important to note that the revered holy cities of Makkah and Madinah will continue to operate under special restrictions, acknowledging their profound religious significance.

The new law is slated for enforcement in January 2026. In the interim, within the next 180 days, the Saudi government will actively engage with the public. They are committed to releasing a comprehensive list of approved zones and publishing the full ownership guidelines. Furthermore, public feedback will be actively invited and collected through the “Istitaa” consultation platform, ensuring transparency and stakeholder engagement in the finalization of these crucial regulations.

This momentous change carries immense significance for Saudi Arabia’s long-term economic aspirations. It directly supports several core objectives of Vision 2030, including: accelerating the nation’s economic diversification away from oil, significantly increasing foreign direct investment, and catalyzing urban development in burgeoning mega-cities and projects like NEOM, Riyadh, and Jeddah. Officials have also emphasized their commitment to safeguarding local interests while simultaneously ensuring a secure and attractive investment environment for foreign buyers.

The implications of this new property law are expected to reverberate across multiple industries, fostering substantial growth in sectors such as real estate, construction, mortgage and banking, and the crucial cement and infrastructure industries. The financial markets have already responded positively to the news, with Saudi real estate stocks on the Tadawul Exchange witnessing notable gains, some even exceeding 5% following the announcement.

For expats currently in Saudi Arabia and global investors keen on tapping into this emerging market, the advice from experts is to remain vigilant. It is prudent to meticulously track updates on the “Istitaa” platform and to refrain from premature speculation until the complete set of rules and guidelines are officially released. Furthermore, prospective buyers are encouraged to monitor new project announcements as developers strategically target the newly approved zones.

This move positions Saudi Arabia in alignment with other successful regional players like Dubai, Abu Dhabi, and Doha, all of whom have experienced remarkable growth after liberalizing their foreign property ownership laws. If successful, this strategic opening could very well transform Riyadh and Jeddah into the next prime investment hotspots in the Gulf, marking the beginning of exciting new opportunities for long-term residence and real estate investment in the Kingdom for global buyers.