Non‑Saudi Property Ownership System: New Law Details and Requirements

In a historic move under Saudi Arabia’s Vision 2030, the Saudi Council of Ministers on July 9, 2025 approved a new law allowing non‑Saudis to own real estate in designated areas of the Kingdom starting January 2026. This aims to boost foreign direct investment, diversify the economy away from oil, and increase housing supply, while maintaining market balance and protecting Saudi citizens’ interests.

Saudi Minister of Municipalities and Housing, Majed Al‑Hogail, expressed his gratitude on X for the Council’s approval of the updated foreign‑ownership regime, calling it a step that will stimulate investment and increase property supply.

أرفع أسمى آيات الشكر لمقام مولاي خادم الحرمين الشريفين وسمو ولي العهد _ حفظهما الله _ بمناسبة صدور موافقة مجلس الوزراء على النظام المحُدث لتملُّك غير السعوديين للعقار.
خطوة نتطلع أن تسهم في تحفيز الاستثمار في القطاع ورفع جودة ووفرة المعروض العقاري من خلال استقطاب المستثمرين… https://t.co/3amDZT4uiX

— ماجد الحقيل (@majedhogail) July 8, 2025

The Previous Foreign‑Ownership Regime in Saudi Arabia

Under the prior 2000 foreign‑ownership law, ownership was largely limited to licensed investors or companies with specific economic activities. Non‑Saudis were completely barred from owning property in Mecca and Medina, except for certain religious endowments. Foreign real‑estate ownership remained confined to a narrow scope with strict restrictions to preserve those cities’ religious and cultural character.

Why Now? Drivers of the New Reform

The main impetus for the new foreign‑ownership law is to support Vision 2030’s goal of economic development beyond oil dependence. The new regime is expected to significantly expand housing supply and offer larger investment opportunities to international developers. Following the announcement, real‑estate stocks such as Retal and Saudi Real Estate rose, and the real‑estate sector index climbed, reflecting global developers’ eagerness to capitalize on the new framework and invest more heavily in Saudi property.

Key Features of the New Foreign‑Ownership Law

• The law takes effect in January 2026.
• It covers major cities like Riyadh and Jeddah, plus various economic zones.
• Mecca and Medina remain subject to special controls and conditions.

Procedures and Regulation

The primary authority for implementing and regulating the law will be the Real Estate General Authority (REGA), which must define the eligible areas and issue the executive regulations within 180 days via the “Esttlaa” platform. These regulations will include:

• Proof of lawful residence for property buyers.
• A minimum investment threshold (not yet officially set).
• A maximum number of properties permitted per individual.

Protecting the Market from Real‑Estate Inflation

The law is paired with regulatory oversight mechanisms, requiring approvals from bodies like the Ministries of Interior and Foreign Affairs when necessary. It seeks to balance opening investment opportunities to foreigners with safeguarding Saudi citizens’ interests.

What Does the New Law Offer Compared to the Old?

Expected Impact on the Real‑Estate Market

• Increased housing supply, especially in major cities.
• Diversified demand sources with foreign investors entering the market.
• Support for mega‑projects like NEOM, Jubail, and waterfront developments that need foreign capital and expertise.
• Strengthening the sector’s legal framework while protecting citizens.

Anticipated Executive Regulations

Within 180 days of publication, the executive regulations will be issued after public consultation on the “Esttlaa” platform. They are expected to detail:

• Precise delineation of eligible ownership areas.
• Specific conditions for individuals and for institutions/companies.
• Monitoring mechanisms, property limits, and minimum investment amounts.
• Integration with other regulations, such as Premium Residency.

In conclusion, opening real‑estate ownership to non‑Saudis is a strategic step toward an open, diversified economy. From legislative and economic perspectives, this law is a cornerstone for attracting global investors while ensuring a fair environment for Saudi citizens. The executive regulations, once issued on the “Esttlaa” platform, will be vital for preparation and planning under the new regime.

Read also:

• Premium Residency for Property Owners in Saudi Arabia
• Sustainable Buildings and Energy Efficiency in Saudi Arabia – Investment Opportunities for a Green Future