MAKKAH: The Saudi Cabinet has recently approved a new law regulating property ownership by non-Saudis, effective from January 2026.
Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail lauded the leadership’s support for the initiative, adding the updated framework is designed to stimulate sector growth and encourage foreign direct investment in Saudi Arabia, the Saudi Press Agency (SPA) reported.
The new regulations aim to strike a balance between encouraging foreign investment and protecting citizens’ interests by introducing controlled market mechanisms and strict compliance procedures to maintain stability in the real estate sector.
Foreigners will be allowed to own property in designated geographic areas, primarily in Riyadh and Jeddah, while special conditions will govern ownership in Makkah and Madinah.
The General Authority for Real Estate will determine which areas are open to foreign ownership.
Implementation guidelines will be made available on the Istitlaa platform within 180 days of the law’s publication in the official gazette, with full enforcement of the new system set for January 2026.
The comprehensive regulations will outline acquisition procedures for foreign nationals, enforcement requirements, and detailed application processes that consider both economic and social implications across all sectors.
Hamad Al-Shuwaier, chairman of the National Valuation Committee at the Saudi Chambers Federation, told Arab News that the Cabinet’s approval signals strong support for real estate development initiatives.
“Foreign capital influx and international developer participation will enhance supply quality and market availability, creating the balanced marketplace we have been working toward,” said Al-Shuwaier, who also serves as the chairman of the Saudi-Qatari Business Council, noting the sector’s role as an economic cornerstone supporting over 80 related industries.
The Saudi real estate market presents strong investment fundamentals, supported by flexible regulations and attractive opportunities for both domestic and international investors.
This positions the Kingdom to build on the momentum of Vision 2030.
Real estate expert and certified marketer Badr Al-Sulaimani highlighted the strategic significance of leveraging Saudi Arabia’s vast land resources, pointing out that only 0.36 percent of the Kingdom’s territory is currently developed.
“These regulations demonstrate the government’s commitment to maximising natural and geographical assets to achieve Vision 2030 targets, while preparing infrastructure for major international events including Expo 2030 and the 2034 World Cup,” Al-Sulaimani explained.
Real estate expert Fawaz Assiri emphasised that the updated system will boost the market’s appeal by encouraging greater foreign direct investment, which in turn will diversify property offerings and improve supply dynamics.
He noted that clearly defined geographical boundaries and specific regulations for the holy cities, particularly Makkah and Madinah, are designed to maintain market stability while safeguarding the interests of citizens.
