Saudi Arabia is gearing up to open its doors to foreign real estate investors.
The Gulf kingdom is welcoming non-Saudis to buy property beginning Jan. 1, 2026, Forbes reported. Residents of other countries will be allowed to buy into developments in Riyadh and Jeddah.
The Saudi Cabinet approved the legislation earlier this month allowing foreign individuals, companies, non-profit organisations and investment entities to own or hold real rights over property across designated zones in the country. Those outsiders will enjoy rights of ownership, leaseholds, usufruct and other real estate interests, though they’ll still be subject to certain restrictions based on location, property type and specific usage, The Economic Times reported.
It’s likely that buyers will have the opportunity to take part in pre-built sales of condos and villas, much like the system in Dubai. Big-name developers will likely launch glitzy projects not unlike those found in the neighboring United Arab Emirates.
Under the new law, foreign individuals with legal residence in Saudi Arabia will be permitted to own a single residential property outside restricted areas for personal use.
Diplomatic missions and international organisations will also be allowed to own property for official use, as long as they receive approval from the Ministry of Foreign Affairs and maintain reciprocity with the country.
Though the law largely expands foreign access to Saudi property markets, some restrictions will still be in place, including ownership in Mecca and Medina being limited to Muslim owners, according to the Saudi Gazette.
At the same time, the legislation also gives property ownership rights to non-listed companies with foreign shareholders, licensed investment funds and special-purpose vehicles, including for operational needs and employee housing, even within Mecca and Medina, under regulated conditions.
Interested non-Saudi buyers must register with relevant authorities before any property transaction. The government only recognizes the legal validity of ownership or real rights after purchasers are entered into the national real estate registry. A property transfer fee of up to 5 percent will apply to transactions involving foreign buyers.— Chris Malone Méndez
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