Under the new Law of Real Estate Ownership by Non-Saudis, location decides everything. Foreigners cannot buy anywhere they like. Ownership is mainly tied to designated geographic zones, which the Council of Ministers approved on 24 June 2026.
This guide explains where those zones are, who can buy outside them, and what restrictions apply.
How the Zone System Works
Zones are defined in four cities: Riyadh, Jeddah, Makkah and Madinah. Each city has its own list of approved areas, and the Makkah and Madinah zones carry extra conditions. REGA publishes the official zone documents, and you can check whether a property is eligible on the Saudi Properties portal.
Border areas, military sites and sensitive security facilities are closed to foreign ownership in all cases.
Riyadh: Focused on Giga-Projects and New Districts
Riyadh’s zones are concentrated in the city’s fast-growing northern and eastern corridors, mainly around large new developments:
- King Abdullah Financial District (KAFD)
- New Murabba
- Diriyah Gate
- Qiddiya
- King Salman Park
- Sedra
- Sports Boulevard and the arts district
- King Salman International Airport area
- Transit-Oriented Development (TOD) sites
What this means for investors: Riyadh focuses on large, master-planned projects that suit institutional buyers. That makes it a good fit for long-term capital growth and premium commercial or residential assets.
Jeddah: The Widest Access
Jeddah is the most open. Its zones cover the city centre plus 55 development areas, spread across established neighbourhoods and new coastal projects. That gives international buyers more choice in price, property type and location.
What this means for investors: Jeddah offers more variety, including waterfront residential, hospitality-linked assets and mixed-use developments.
Makkah and Madinah: Special Conditions
The holy cities have the strictest rules. Ownership is limited to Muslim individuals and Saudi companies, and only within named zones.
Makkah zones include Abraj Makkah, Al Manar, Burj Ajyad, King Salman Gate, Jabal Omar, Tilal Village, Dhakhir Makkah and Masar.
Madinah zones include Al-Ghurra, Downtown Madinah, Darat Al Hijra, Rua Al Madinah, Knowledge Economic City and Mishraf.
Other restrictions:
- Foreign companies incorporated outside the Kingdom cannot own property here.
- Foreign non-profits cannot own property here.
- Saudi companies with foreign investors face caps on foreign shareholding when they own property in these cities.
Who Can Buy Outside the Zones?
Some buyers have wider rights:
- Iqama holders can own one residential property for personal use in any city except Makkah and Madinah.
- Premium Residency holders have rights similar to iqama holders.
- GCC nationals can own for residence or investment in all cities except the holy cities.
- Saudi companies with foreign shareholders can own for business activities and staff housing, with Ministry of Investment approval.
- Non-residents cannot. They are limited to the designated zones.
What Types of Property Can Foreigners Buy?
Within the approved zones, foreigners can buy residential, commercial and hospitality property, subject to the zone’s rules. Investors can also hold long-term leases or usufruct rights instead of full ownership. This can be useful for large commercial deals.
How to Choose the Right Location
When comparing zones, look at:
- Investment goal: capital growth, rental income or business use
- Project stage: off-plan purchases from developers are treated differently from resale (see our costs and fees guide)
- Demand drivers: proximity to business districts, tourism, events and infrastructure
- Exit options: how easily you can resell to other eligible buyers
- Structure: whether you buy as an individual or through a company
Eyad’s market analysis and legal administration team helps investors compare zones and check whether a property is eligible before committing capital.
Frequently Asked Questions
Can foreigners buy property anywhere in Riyadh?
No. Non-residents are limited to approved zones such as KAFD, New Murabba and Diriyah Gate. Residents can also buy one home outside the zones.
Which city has the most options for foreign buyers?
Jeddah. Its zones cover the city centre plus 55 development areas.
Where can I see the official zone list?
On REGA’s Saudi Properties portal, which shows eligible properties by zone.
Not sure which zone fits your strategy? Speak to Eyad’s Real Estate Investment team.