Can Foreigners Buy Property in Saudi Arabia? What the 2026 Law Means for Investors

For years, the answer to whether foreigners can buy property in Saudi Arabia was complicated, conditional, and mostly negative for individuals. That changed in 2026. The Kingdom now allows non-Saudis to own real estate under a new legal framework that took effect in January, and it represents one of the biggest structural shifts in Gulf property in decades.

This guide explains exactly who can buy, where they can buy, what it costs, and which restrictions still apply. The information here is based on the Law of Real Estate Ownership by Non-Saudis and the official guidance issued by the Real Estate General Authority (REGA). If you are planning investment in Saudi Arabia, understanding this law is the first step — and the real estate advisory work we handle at Medina Camps Consulting starts with getting these rules right.

Can Foreigners Buy Property in Saudi Arabia Now

Yes. As of January 2026, foreigners can buy property in Saudi Arabia under the Law of Real Estate Ownership by Non-Saudis, which was approved by Royal Decree No. M/14 and published in the official gazette on 25 July 2025. The law came into force 180 days after publication.

Before this reform, the old framework from 2000 effectively locked out foreign individuals unless they were operating a business in the Kingdom. A company could buy an office or house its employees, but individual ownership was off limits. The new law removes those barriers and creates a structured system that allows both individuals and companies to own property, subject to specific geographic and regulatory conditions.

The framework is built around one central principle. Rather than opening the entire market at once, Saudi Arabia channels foreign ownership into designated zones, which attracts international capital without distorting local housing affordability.

Who Is Eligible to Own Property

REGA defines five categories of non-Saudis who are eligible to own property and acquire real estate rights under the new law:

• Foreign individuals
• Foreign companies
• Saudi companies with foreign shareholders
• Non-profit entities
• Diplomatic missions

Within these categories, the rules differ depending on residency status. A non-Saudi individual who holds legal residency in the Kingdom is permitted to own one residential property for personal use, even outside the designated ownership zones, with the exception of Makkah and Madinah. Non-residents investing from outside the Kingdom can own property only within the zones designated by the authorities.

This distinction matters. If you are already a resident in Saudi Arabia, the law grants you a personal exception to own a single home. If you are investing from abroad, your purchases are tied to the approved zones.

Where Foreigners Can Buy: The Designated Zones

The cornerstone of the new law is the designated zone system. Your ability to buy depends as much on where the property sits as on your nationality.

Residential ownership is being opened to foreigners across most Saudi cities, with specific rules for four cities: Makkah, Madinah, Jeddah, and Riyadh. In Riyadh and Jeddah, foreign ownership is permitted within defined areas rather than across the entire city, so buyers must purchase inside the zones set out in the official Geographic Scope Document.

REGA is responsible for proposing these zones, which are then approved by the Council of Ministers. The authority confirmed that the implementing regulations and the geographic scope document are scheduled for release in the first quarter of 2026. These documents specify the permitted ownership percentages, the types of rights granted, grace periods, and the procedural rules for each location. A 13-member Supervisory Committee, which includes the Ministry of Investment, the Ministry of Justice, REGA, and the Madinah Region Development Authority, oversees the system.

For investors, the practical takeaway is straightforward. Before committing to any purchase, verify that the property sits within an approved zone using REGA's official publications. This is particularly important for anyone considering real estate in Saudi Arabia as a non-resident.

The Rules for Makkah and Madinah

The two holy cities are treated differently from the rest of the Kingdom, and the rules here are the most frequently misunderstood part of the law.

Ownership in Makkah and Madinah remains restricted. For individuals, property ownership in these two cities is permitted for Muslim non-Saudis only. The personal residency exception that allows one home outside the zones explicitly excludes Makkah and Madinah.

There is one important pathway for businesses. Non-listed companies with foreign ownership may own property within the approved zones, including in Makkah and Madinah, provided they are established under Saudi company law. They may also own property outside those zones when it is used for business operations or employee housing, as defined by the regulations. This is where the connection between property ownership and company formation in Saudi Arabia becomes directly relevant for serious investors.

What Foreigners Can Buy

• Residential property, including apartments, villas, and townhouses
• Commercial property and land within approved zones
• Agricultural farms, subject to regulations
• Shares in major development projects such as NEOM, Qiddiya, and Red Sea Global
• Tokenized fractional ownership stakes in real estate

That last category is significant. The framework explicitly recognizes digital fractional ownership, which means investors can buy tokenized stakes in property remotely, without needing to visit the Kingdom to complete a purchase.

What It Costs to Own Property as a Foreigner

The new law introduces specific fiscal obligations for non-Saudi buyers. The headline figure is a combined 10% in fees and taxes on foreign ownership, which includes the 5% Real Estate Transaction Tax applied at purchase.

A few additional points matter for calculating your true cost:

• Saudi Arabia has no annual property tax, which improves the long-term holding economics
• Full-service property management typically costs between 5% and 10% of collected rent, plus a leasing fee that can reach one month's rent
• All acquisitions must be registered through the official channels, and the new framework requires foreign buyers to disclose all required information

The Penalties for Getting It Wrong

The law carries real enforcement teeth, and this is not an area to navigate casually. Violations can result in fines of up to SAR 10 million. Properties acquired through false or misleading information can be auctioned publicly. Non-compliance with the ownership structure rules can lead to refused title registration or ownership structures that are not enforceable before Saudi courts.

For foreign buyers, this means zone eligibility, the correct ownership structure, and accurate disclosure are not optional details. They determine whether your ownership is legally valid in the first place.

Why This Matters for Investors in 2026

The timing of this reform aligns with a property market showing genuine strength. Total real estate transaction values reached SAR 112 billion in the first quarter of 2026, up 6.8% year on year, according to CBRE. REGA expects the sector to reach around 101 billion dollars by 2029, with a projected compound annual growth rate of 8% from 2024.

The demand drivers are structural rather than speculative. The Regional Headquarters program has brought more than 780 multinationals into Riyadh. Riyadh's population is projected to approach 9.6 million by 2030, and major events, including Expo 2030 and the 2034 FIFA World Cup, are creating demand that extends well into the next decade.

For foreign investors who have watched Saudi Arabia from the outside, the 2026 law is the structural change that makes direct participation possible for the first time.

Frequently Asked Questions

Can foreigners buy property in Saudi Arabia in 2026?

Yes. Since January 2026, foreigners can buy property under the Law of Real Estate Ownership by Non-Saudis. Purchases by non-residents are limited to designated zones, while foreign residents can own one residential unit for personal use outside those zones, excluding Makkah and Madinah.

Can non-Muslims own property in Makkah and Madinah?

No. Individual property ownership in Makkah and Madinah is restricted to Muslim non-Saudis. Foreign-owned companies established under Saudi company law may own property in these cities under specific conditions.

Do I need to visit Saudi Arabia to buy property?

Not necessarily. The law recognizes digital fractional ownership, which allows investors to buy tokenized stakes in real estate remotely. Full property purchases generally require registration through official channels.

What does it cost a foreigner to buy property in Saudi Arabia?

Expect a combined 10% in fees and taxes, which includes a 5% Real Estate Transaction Tax. Saudi Arabia has no annual property tax, and property management runs 5% to 10% of rent where applicable.

Where exactly can foreigners buy?

Within the designated zones published by REGA. The official Geographic Scope Document, scheduled for release in the first quarter of 2026, specifies the approved areas, permitted ownership percentages, and property types for each location.

Can my company own property instead of me personally?

Yes. Foreign companies and Saudi companies with foreign shareholders can own property under the framework. This is often the more flexible route for investors, and it connects directly to establishing a legal entity in the Kingdom.