Saudi Arabia to Allow Foreigners to Buy Property in Designated Areas from 2026
In a historic move, Saudi Arabia has announced a major change to its property ownership laws. For the first time ever, foreign nationals will be allowed to buy real estate in specific areas of major cities like Riyadh and Jeddah. This new policy will take effect in January 2026.
This decision is a part of Saudi Arabia’s broader vision to open up its economy, attract international investment, and boost its growing real estate sector.
🏘️ What’s Changing?
Previously, foreigners were not allowed to buy property or invest directly in real estate within the kingdom. With the new law:
- Foreigners can purchase property in designated zones
- Cities like Riyadh and Jeddah will offer limited areas under strict rules
- Full legal ownership will be permitted (not just leasehold or joint ventures)
- The law becomes effective from January 2026
💡 Why Is This a Big Deal?
This shift is part of Saudi Arabia’s Vision 2030 reforms, aimed at:
- Attracting foreign direct investment (FDI)
- Expanding the real estate and housing sectors
- Diversifying the economy beyond oil
- Enhancing urban development in major cities
📌 Key Points at a Glance
- 🏠 Foreign Ownership Allowed – for the first time ever
- 📍 Cities Covered – Riyadh, Jeddah, and other selected areas
- 📅 Effective From – January 2026
- ⚖️ Under Conditions – Properties can be bought under strict legal guidelines
- 📈 Goal – Boost foreign investment and modernize the housing sector
❓ FAQs: Saudi Arabia’s New Property Law for Foreigners
Can any foreigner buy property in Saudi Arabia now?
Not immediately. The new law will be effective from January 2026. After that, foreigners will be able to purchase property in designated areas only.
What cities will be open for foreign real estate investmen
Major cities such as:
Riyadh
Jeddah
Other cities may be added depending on future regulations
Will there be restrictions or conditions?
Yes. Foreigners must follow strict legal procedures and may be limited to:
Certain property types (e.g., residential only)
Government-approved zones
Minimum investment thresholds
Why is Saudi Arabia making this change?
Encourage international investment
Expand the housing market
Support the goals of Vision 2030
Create more job opportunities and economic activity
✅ Conclusion
Saudi Arabia’s decision to allow foreigners to purchase property marks a significant turning point in its economic and real estate policies. From January 2026, eligible foreign nationals will be able to invest in selected areas of major cities like Riyadh and Jeddah.
This bold step is part of the Kingdom’s efforts to diversify its economy and make Saudi Arabia a global hub for investment and growth.
As more details emerge in the coming months, investors and interested buyers should stay updated and prepare to explore new opportunities in one of the Middle East’s most dynamic markets.
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