To ensure transparency and compliance, the law sets out clear registration rules, fees, and penalties
Saudi Arabia is all set to allow foreigners to own property across most of the Kingdom starting January 2026. This would be a mammoth step in opening its real-estate market to international investors. Residential ownership will be permitted nationwide, except in four major cities, namely, Makkah, Madinah, Jeddah, and Riyadh.
Minister of Municipalities and Housing Majed Al-Hogail, as quoted by the Saudi Gazette, explained the move, saying, “Residential ownership by foreigners will be permitted across the Kingdom, with four notable exceptions.” He also noted that specific areas within the restricted cities could later be designated where foreigners may purchase property, subject to official approval.
Unlike residential holdings, commercial, industrial, and agricultural properties will be fully open to foreign ownership throughout Saudi Arabia, reflecting the government’s push to attract foreign investment and boost economic growth.
To ensure transparency and compliance, the law sets out clear registration rules, fees, and penalties. All property transactions will need registration with the Real Estate Registry, and violators could face fines of up to SR10 million ($2.67 million) or even court-ordered sale of the property in severe cases.
Al-Hogail stressed on the safeguards, stating, “The framework ensures that foreign ownership does not grant additional privileges beyond those defined by law.”
The new legislation aligns with Saudi Arabia’s broader vision of encouraging international investment while maintaining strict oversight, balancing economic opportunity with regulatory control. Many say this could be a game-changer for the Kingdom’s property market, opening doors for global investors while preserving key areas for domestic stakeholders.
End of Article
