Saudi Arabia Opens Real Estate Market to Foreign Buyers in 2026

Saudi Arabia is introducing a new legal framework from January 2026 that allows foreign nationals to own property in the Kingdom. The law clearly defines where foreigners can buy property, what types they can own, and the limits that apply. This step opens investment opportunities while keeping regulations clear.

Foreigners will be allowed to own residential property in most Saudi cities, except for four major cities: Makkah, Madinah, Jeddah, and Riyadh. Authorities may later allow property ownership in specific zones within these cities. Non-Saudi residents can own one home outside these designated zones nationwide, while Makkah and Madinah remain restricted to Muslims only. Non-residents can buy property only in approved areas.

The law also opens commercial, industrial, and agricultural properties to foreigners in all Saudi cities without exception. This move encourages foreign investment, business growth, and agricultural development across the Kingdom.

The framework sets legal controls such as geographic boundaries, ownership limits, and types of real estate rights. The Council of Ministers, based on recommendations from the Real Estate General Authority, will define the allowed ownership ratios and conditions. The law ensures that foreign ownership does not grant extra privileges or affect other programs, such as the Premium Residency Program or Gulf Cooperation Council agreements.

All non-Saudi individuals and companies must register with authorities. Ownership is legally valid only after being recorded in the Real Estate Registry. A transaction fee of up to 5% of the property value will apply, as specified in executive regulations.

Violating the law may result in fines or warnings. Providing false information can lead to fines up to SR10 million or, in some cases, a court-ordered sale of the property.

Through these rules, Saudi Arabia aims to open its real estate market to foreigners while keeping growth controlled, transparent, and fully regulated across both residential and commercial sectors.