RIYADH, July 11: In a landmark policy shift aimed at boosting foreign investment, Saudi Arabia will permit non-Saudis to own real estate in designated areas across the Kingdom beginning January 2026. The move comes under a newly approved property ownership law, marking a significant milestone in the country’s broader strategy to diversify its economy and strengthen the real estate sector.

Under the new framework, foreign nationals will be permitted to purchase property in specific zones, primarily in Riyadh and Jeddah, while ownership in the holy cities of Mecca and Medina will be subject to stringent regulatory conditions and additional oversight.

“The updated law is designed to expand the real estate supply, attract international investors and developers, and stimulate foreign direct investment in the Saudi market,” Al-Hogail said, adding that the legislation includes procedural safeguards to protect national interests and ensure the integrity of the housing sector.

The Real Estate General Authority will play a central role in implementing the law. It will define the geographical zones open to foreign buyers and draft the accompanying executive regulations. These regulations will be made available for public consultation via the “Istitlaa” platform within 180 days of the law’s publication in the official gazette. The guidelines will detail eligibility requirements, application procedures, and compliance mechanisms, ensuring a balanced approach to economic liberalization and social responsibility.

The law complements existing frameworks such as the Premium Residency Law and property ownership rights extended to GCC citizens, further reinforcing Saudi Arabia’s commitment to regulatory modernization under the Vision 2030 transformation plan.

By opening its property market to global investors, the Kingdom seeks to position itself as a competitive real estate destination while addressing domestic housing demand and fueling long-term economic growth.