New legislation paves the way for international investment in the Kingdom’s real estate market.

In a landmark move set to reshape the region’s property landscape, Saudi Arabia has approved new legislation that will allow foreign property ownership in designated areas of Riyadh and Jeddah. The law, expected to take effect in January 2026, marks a significant step in advancing the country’s Vision 2030 strategy to diversify the economy and attract long-term foreign investment.

While property ownership in the holy cities of Mecca and Medina will remain subject to specific regulatory conditions, this progressive shift signals a broader openness, placing Saudi Arabia in step with neighbouring markets like Abu Dhabi, Doha and Dubai, each of which has benefited significantly from foreign real estate ownership in recent years.

The decision is poised to transform the property market, particularly for long-term expatriates, who account for an estimated 40 per cent of the population. Many of these residents have spent decades in the Kingdom without the option to invest in a permanent home. With the new law, they can now lay roots, gain financial security, and contribute to a stronger sense of community and belonging.

“This decision could be transformational for long-term non-GCC expatriates,” says Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat.

Junaid Ansari, Director of Investment Strategy and Research at Kamco Invest, echoes the sentiment. “We have seen the benefits of allowing foreigners to buy property in Dubai. A similar benefit can be expected for the real estate market in Saudi Arabia. This is a very positive step for the Kingdom that would help the government achieve the Vision 2030 targets in terms of population growth and FDI and support local businesses and employment.”

In 2024, real estate contributed nearly 12 per cent to Saudi Arabia’s GDP, a figure that is set to rise as urban hubs continue to develop and international interest surges. The Real Estate General Authority will soon announce designated zones for foreign ownership. These proposals, along with executive regulations, are expected to be published on the Istitlaa platform within the next six months.

For more information on foreign property ownership in Riyadh and Jeddah, stay tuned to FACT.

GO: Visit https://rega.gov.sa for more information.