S
audi Arabia has introduced a new law regulating real estate ownership by non-Saudis, published in the official gazette on July 25, 2025. The Law of Real Estate Ownership by Non-Saudis will take effect 180 days after publication, anticipated in January 2026. This reform aligns with Saudi Arabia's Vision 2030 goals by attracting foreign capital and expanding the real estate market.

    The new law defines "non-Saudi" broadly to include anyone without Saudi citizenship, as well as foreign legal entities. It adopts a designated-zone model for foreign real estate ownership, where non-Saudis are permitted to acquire property or property rights in specific geographic zones identified by the Council of Ministers.

    Sensitive cities and regions such as Makkah and Madinah remain largely off-limits to foreign ownership under the new law, with only narrow exceptions. Foreign investors may obtain a range of real estate rights, including full ownership, long-term leaseholds, usufruct rights, easements, and similar interests.

    The law also offers opportunities for foreign residents and businesses. Non-Saudi individuals who are legally residing in Saudi Arabia will be permitted to own properties within designated zones, as well as one residential property outside of these areas. Foreign-owned business entities enjoy broader real estate privileges to support their operations, including the ability to acquire property necessary for their business activities.

    Foreign diplomatic missions and international organizations accredited in Saudi Arabia are explicitly allowed to own premises for official use. All real estate purchases or rights acquisitions by non-Saudis must be registered with the competent authority and recorded in the national Real Estate Registry to be legally effective.

    The law establishes a strict compliance regime, with violations resulting in hefty fines of up to SAR 10 million (~USD 2.67 million) per offense. Companies and investors should review their existing real estate portfolio and future plans in light of the new law, monitor implementing regulations, and explore new investment opportunities in Saudi Arabia's emerging zones.

    The expanded rights for non-Saudis are expected to increase market liquidity and spur development in key cities. Investors can start exploring opportunities in residential, commercial, and mixed-use projects across the Kingdom's designated zones, including potential participation in Saudi Arabia's ambitious development initiatives under Vision 2030.