Saudi Arabia to Open Real Estate Market to Foreign Buyers from January 2026

Saudi Arabia has approved a landmark law allowing foreigners to purchase and own real estate in the Kingdom, starting January 2026  a major shift under its economic reform agenda. The new legislation, published in July 2025, replaces the previous restrictions and opens up the property market to foreign individuals, companies, non-profit organisations and diplomatic missions.

Under the new framework, foreigners will be able to acquire a variety of real estate assets including homes, commercial properties, and investment real estate but only within designated geographic zones that the government will define. Major urban centres such as Riyadh and Jeddah are expected to be among the first zones open to foreign ownership.

Due to the religious and cultural significance of the two holy cities, ownership in Mecca and Madinah remains under stricter regulation. While exceptions may exist under special conditions especially for Muslim buyers the full rules are expected to be outlined when the designated-zones map is released formally

The law comes with regulatory safeguards and obligations: foreign buyers will need to register the property properly, provide required disclosures, and comply with transfer fees and taxes  estimated around 10% in some cases. Non-compliance or mis-declaration could lead to steep fines (up to SR 10 million) or even forced sale of the property

This reform is seen as a strategic move aligned with Saudi Arabia’s Vision 2030 objective: to attract foreign direct investment, diversify the economy beyond oil, and spur growth in real estate and urban development sectors. It opens a new chapter for international investors, expatriates and global real estate markets looking at the Kingdom as an emerging property destination.