Starting January 2026, foreigners will be allowed to buy property in Saudi Arabia for the first time. The newly approved law will apply to both individuals and companies from outside the Kingdom, including expatriates living in the country. Buyers won’t need Saudi citizenship, but property ownership will be limited to specific zones that are still being finalized. Riyadh and Jeddah have already been confirmed as part of the approved locations.
Makkah and Madinah will remain under separate guidelines due to their religious significance. While the government has not released full details, it is expected that special permissions will be required for any property transactions in these cities. A complete list of approved areas and ownership conditions will be published later this year, giving the public an opportunity to review and provide feedback. These details will be made available on the Saudi government’s consultation platform, Istitaa, within the next 180 days.
This development is part of Saudi Arabia’s Vision 2030 plan, which aims to diversify the national economy and reduce reliance on oil. Officials say opening the property market to foreign ownership is a key step toward attracting international investment, boosting housing availability and supporting major development projects, including the futuristic city of NEOM. The government has also stated that the new framework will include safeguards to protect the interests of Saudi citizens while simplifying procedures for foreign investors.
The market has already responded positively. Shares of major real estate firms in Saudi Arabia rose sharply following the announcement, with several gaining more than five percent on the Tadawul stock exchange. The new law is expected to drive growth across multiple sectors, including property development, construction, banking and materials manufacturing. Many developers are now expected to launch projects aimed at attracting foreign buyers.
Foreign residents interested in buying property are advised to monitor updates on the Istitaa platform and wait for the official list of zones and guidelines. Developers in Saudi Arabia are also likely to announce new projects in areas opened for expat ownership.
With this move, Saudi Arabia is following a path already taken by cities like Dubai, Abu Dhabi and Doha, which opened their property markets to foreign investors years ago. Dubai’s decision to allow foreign ownership in 2002 helped transform it into one of the most sought-after real estate markets globally. If Saudi Arabia adopts a similar approach, cities like Riyadh and Jeddah could soon rise as the next major hubs for international property investment.