Saudi Arabia has introduced a landmark change to its property ownership laws, clearing the way for foreign nationals to buy and invest in real estate throughout the Kingdom. The reform represents one of the most significant shifts in Saudi real estate policy and comes as the nation accelerates its Vision 2030 economic transformation.
The updated law, confirmed by the Real Estate General Authority, permits foreign individuals and companies to acquire residential, commercial and agricultural property in designated areas. The framework is intended to stimulate investment, raise development standards, and bring global expertise into one of the region’s strongest real estate markets.
A key element of the reform is the decision to allow foreign ownership in specified zones within Makkah and Madinah. These areas will be limited to major regulated projects and restricted to Muslim buyers, reflecting the cultural and religious significance of the holy cities.
Industry analysts say the decision has already lifted market sentiment. Real estate stocks surged following the announcement, as expectations grew for new capital inflows and an increase in project diversity. Developers anticipate that foreign participation will support large scale urban projects such as NEOM, Qiddiya and Red Sea Global.
The government has stressed that the change is part of a broader effort to improve urban planning, enhance architectural quality and create jobs for Saudi citizens. Safeguards will be implemented to protect local interests, including geographic and regulatory controls.
The full executive regulations, which will outline eligible areas and investment conditions, are expected to be published in the coming months. The rule change is scheduled to take effect in early 2026 and may also influence future revisions to the Kingdom’s premium residency program, which links long term residency options to property ownership.
As Saudi Arabia works toward delivering more than one million new homes and major hospitality and commercial developments by 2030, the reform is widely seen as a strategic step toward building one of the region’s most dynamic property markets.
