Saudi Arabia’s Landmark Reform: Kingdom to Open Property Market to Foreign Ownership from 2026

Saudi Arabia to Open Property Market: Foreigners Can Own Real Estate from 2026

In a landmark economic reform, Saudi Arabia has approved a new real estate law that will permit foreigners to own property in the Kingdom starting in 2026. This strategic move dismantles long-standing restrictions and marks a pivotal shift in Saudi Arabia’s efforts to attract global investment and accelerate diversification under its Vision 2030 agenda.

The forthcoming law will allow non-Saudi nationals—including expatriates and foreign investors—to purchase residential, commercial, and investment properties in designated areas across the country. However, the government will maintain ownership restrictions in four major cities, balancing economic openness with strategic and cultural sensitivities.

Key Provisions and Targeted Openness

While the full list of eligible zones is yet to be published, the law is designed to regulate foreign ownership in a structured manner. The prohibition in four key cities—likely areas of high religious or strategic importance—ensures the reform aligns with national priorities. Ownership rights will be governed by clear licensing procedures, eligibility checks, and compliance frameworks to prevent speculative activity and promote sustainable urban development.

Authorities have emphasized that the new law will not override existing regulations concerning land use, zoning, or national security. All transactions will require official approval through regulated channels, maintaining stringent oversight.

A Catalyst for Investment and Sector Growth

Opening the Saudi real estate market to foreign buyers is expected to significantly boost a sector already thriving due to giga-projects, tourism expansion, and massive infrastructure development. This reform is poised to attract international investors, high-skilled expatriates, and long-term residents seeking stability and asset ownership.

Analysts predict the change will:

• Stimulate demand across housing and commercial segments.

• Increase foreign capital inflows.

• Support the development of integrated, mixed-use communities built to global standards.

The property reform synergizes with other key initiatives, such as premium residency programs (like the Sindalah visa) and relaxed tourist visas, collectively enhancing Saudi Arabia’s appeal as a competitive destination for talent and capital.

Driving Vision 2030 Economic Diversification

This reform is a direct component of Saudi Vision 2030, which aims to reduce oil dependence and build a dynamic, investment-led economy. By modernizing real estate regulations, the Kingdom seeks to enhance market transparency, integrate with global property markets, and strengthen the non-oil GDP.

Officials view foreign property ownership as a tool to drive urban development, improve quality of life, and signal a broader transition from temporary expatriate stays to long-term economic participation and settlement.

Implementation Timeline and Strategic Safeguards

With an effective date set for 2026, Saudi authorities will use the interim period to draft detailed executive regulations. These will specify:

• Eligibility criteria for foreign buyers.

• Possible ownership limits (e.g., by plot size or property value).

• The digital registration and transaction process.

• Ongoing tax and compliance obligations.

The phased rollout allows time to prepare administrative and digital infrastructure, train regulatory personnel, and implement safeguards. These measures are crucial to protecting local housing affordability for Saudi citizens and preventing market distortion in sensitive regions.

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A Transformational Step for the Kingdom

Saudi Arabia’s decision to allow foreign property ownership represents a transformational leap in its economic and legal landscape. By carefully easing restrictions, the government demonstrates a commitment to global integration while safeguarding core national interests.

As 2026 approaches, this reform is set to reshape the real estate ecosystem, creating new opportunities for global investors and residents. It firmly reinforces Saudi Arabia’s emerging status as a premier global investment and lifestyle hub on the world stage.