Saudi Arabia Updates Foreign Property Ownership Laws for 2026
Saudi Arabia is set to implement sweeping reforms to its property ownership laws, granting non-Saudis broader rights to own real estate. This updated legal framework, which will come into effect in January 2026, marks a significant shift in the Kingdom’s approach to foreign investment and property regulations.
Expanded Opportunities for Residential Ownership
Under the new regulations, foreign residents will be permitted to own one residential unit in most cities across Saudi Arabia. However, restrictions will apply to major cities such as Jeddah, Riyadh, Makkah, and Madinah. Property ownership in Makkah and Madinah will remain exclusive to Muslims, reflecting the cities’ religious significance.
Non-residents, meanwhile, will only be allowed to purchase property in specific zones approved by Saudi authorities.
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Commercial, Industrial, and Agricultural Properties Open to All
The updated laws also create opportunities for foreigners to own commercial, industrial, and agricultural properties across all cities in Saudi Arabia without exception. This change is expected to unlock significant business and investment possibilities for international buyers and firms.
New Rules for Companies and Investment Entities
Foreign companies and investment entities will also benefit from the new framework. Non-listed foreign-owned companies will be allowed to purchase property in designated zones, including holy cities, provided they adhere to the relevant regulations. Additionally, listed companies, investment funds, and special-purpose entities will be granted the right to acquire property nationwide, contingent on obtaining the necessary approvals.
Legal Compliance and Financial Requirements
To ensure transparency and regulatory oversight, all non-Saudi property purchases must be registered with the appropriate authorities. Ownership will only be legally recognized following proper registration. The regulations also introduce transaction fees of up to 5% of the property’s value.
Violations of the new laws, such as providing false information, will carry serious consequences. Penalties could include fines of up to SR10 million or even a court-mandated property sale, depending on the severity of the offense.
A Step Toward Greater Accessibility
According to the source, "This framework represents a major step toward making Saudi Arabia more accessible to international investors while maintaining strong controls over property ownership." The changes aim to strike a balance between encouraging foreign investment and preserving regulatory safeguards.
With these updates, Saudi Arabia is positioning itself as a more attractive destination for international investors, while ensuring clear legal boundaries and ownership limits are in place. The new regulations are expected to reshape the real estate landscape across the Kingdom and could have a significant impact on foreign investment in the years ahead.