For decades, owning property in Saudi Arabia was difficult for most foreigners. That changed on 22 January 2026, when the Law of Real Estate Ownership by Non-Saudis entered into force. For the first time, international individuals, companies and institutions have a clear legal route to own Saudi real estate.
This guide explains what the law says, who can use it, and what investors should know before they start.
What Is the Law of Real Estate Ownership by Non-Saudis?
The law was approved in July 2025 and published in the official gazette with a 180-day transition period. It replaces the previous 2000 framework, which gave foreigners only limited ownership rights, mostly tied to residency or licensed business activity.
It is overseen by the Real Estate General Authority (REGA) and follows three main milestones:
- 22 January 2026: the law enters into force.
- 23 June 2026: the implementing regulations are approved and the Saudi Properties portal starts accepting applications.
- 24 June 2026: the Council of Ministers approves the geographic zones where foreigners can buy.
The change supports Vision 2030’s goals of attracting foreign direct investment, deepening the real estate market and supporting the Kingdom’s giga-projects.
Who Can Own Property Under the New Law?
According to the implementing regulations, the following can own property:
- Non-Saudi individuals, whether or not they live in the Kingdom
- Foreign companies not incorporated in Saudi Arabia
- Foreign non-profit entities
- Other foreign legal entities as set by the Ministry of Commerce
- Saudi companies with foreign shareholders, for business use and staff housing
- Diplomatic missions and international organisations, with approval and on a reciprocal basis
What Kinds of Rights Are Allowed?
Foreigners are not limited to freehold ownership. The law also covers long-term leases, usufruct rights (the right to use a property and earn from it), easements and similar interests. This gives investors more ways to structure a deal.
Where Does the Law Apply?
Ownership is concentrated in designated geographic zones in Riyadh, Jeddah, Makkah and Madinah. Makkah and Madinah have extra restrictions: ownership there is limited to Muslim individuals and Saudi companies. For the full breakdown, see our guide on where foreigners can buy property in Saudi Arabia.
The Saudi Properties Platform
Every application goes through the official Saudi Properties portal. The portal is linked directly to the national real estate registry. It lets buyers browse eligible properties, contact licensed developers, submit ownership applications, and have their eligibility checked automatically.
How you apply depends on who you are (SPA):
- Residents apply with their residency ID.
- Non-residents first get a digital ID through a Saudi embassy or mission.
- Foreign companies with no presence in the Kingdom first register with the Ministry of Investment through Invest Saudi and receive a unified number starting with 7.
The full process is covered in our step-by-step guide to buying property as a foreigner.
Key Obligations and Penalties
Owning property comes with compliance responsibilities:
- Registration is required. A purchase is only legally valid once it is recorded in the Real Estate Registry.
- Changes in ownership must be reported. Foreign companies must report changes of more than 5% in ownership, or changes in control, within 15 days.
- Penalties are significant. Giving false information can lead to a fine of up to 5% of the property’s value. Other violations carry fines of 0.1%–3%, and the maximum under the law is SAR 10 million. Serious breaches can lead to a forced sale.
Costs also matter. There is the 5% Real Estate Transaction Tax plus an additional fee for non-Saudis in designated zones, both explained in our guide to costs, fees and taxes for foreign investors.
What This Means for International Investors
The law gives investors a regulated, digital and transparent way into one of the fastest-changing property markets in the region. Buying still requires the right structure, careful due diligence and ongoing compliance, so a local partner helps.
Eyad’s Real Estate Investment service supports qualified investors at each stage: eligibility assessment, choosing an ownership route, documentation, finding opportunities, acquisition and quarterly reporting.
Frequently Asked Questions
Can foreigners buy property in Saudi Arabia in 2026?
Yes. Since 22 January 2026, non-Saudi individuals, companies and entities can own property, mainly within designated zones.
Do I need to live in Saudi Arabia to buy property?
No. Non-residents can buy within designated zones after getting a Saudi digital ID, opening a local bank account and registering a Saudi phone number.
Can non-Muslims buy property in Makkah or Madinah?
No. Ownership in those cities is limited to Muslim individuals and Saudi companies, and only within approved zones.
Planning to invest? Request an investment briefing with Eyad’s team.