Saudi Arabia introduced a new law allowing foreigners to own property in key cities to attract global investors. This decision supports Vision 2030 by diversifying the economy and reducing oil dependency.
The Saudi Arabian foreign property law gives non-Saudis access to real estate in designated zones across Riyadh and Jeddah. However, property ownership in Makkah and Madinah requires meeting strict requirements under special regulations. This initiative aims to grow real estate supply and encourage foreign investments.
Minister Majed bin Abdullah Al-Hogail confirmed the law’s role in attracting companies and expatriates seeking housing solutions. He explained that foreign companies could now invest in staff accommodations, reducing the need for long-term hotel stays. Expats planning to stay in Saudi Arabia long-term will also benefit from this change.
The Saudi Arabian foreign property law takes effect in January 2026. The Real Estate General Authority will identify areas open to foreign ownership and issue clear guidelines within six months. These steps aim to simplify processes for international investors.
On the contrary, other Gulf cities like Dubai, Abu Dhabi, and Doha already offer similar opportunities for foreign ownership. Saudi Arabia’s move allows it to compete directly with these markets for global capital and talent.
Additionally, Saudi Arabia announced measures enabling foreign investors to hold stakes in listed local firms that own property in Makkah and Madinah. A new work permit system also encourages skilled expatriates to live and work in the kingdom.
However, the Saudi Arabian foreign property law marks a major shift in investment policy. It reflects Saudi Arabia’s focus on creating a welcoming environment for international investors and strengthening the housing market.
By opening its real estate sector, Saudi Arabia plans to boost economic growth and position itself as a global investment hub. This policy supports broader national efforts to modernize the economy and diversify income sources.
