Saudi Updates Foreign Property Ownership Laws For 2026

Starting January 2026, Saudi Arabia will introduce an updated legal framework allowing non-Saudis to own real estate, marking a major change in property and investment regulations across the Kingdom.

A bunch of new changes are coming soon which you should definitely keep note of

• Residential property for foreigners:

  • Foreign residents can own one residential unit in most Saudi cities.

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  • Non-residents can purchase property only in designated zones approved by authorities.

  • Exclusions: Makkah, Madinah, Jeddah, and Riyadh have restricted ownership. Ownership in Makkah and Madinah remains limited to Muslims.

• Commercial, industrial, and agricultural properties:

  • Foreigners can own these types of properties in all cities, without exception.

  • Opens the door for wider investment and business opportunities.

• Companies and investment entities:

  • Non-listed foreign-owned companies may buy property in approved zones, including holy cities, under regulations.

  • Listed companies, funds, and special-purpose entities can own property nationwide with the necessary approvals.

• Registration, fees, and penalties:

  • All non-Saudis must register their property with relevant authorities; ownership is legally recognized only after registration.

  • Transaction fees of up to 5% of property value apply.

  • Violations may result in fines or warnings; submitting false information could lead to fines up to SR10 million or a court-mandated sale.

The updated system aims to provide clear legal boundaries, ownership limits, and regulatory oversight, while boosting foreign investment in Saudi Arabia.

This framework represents a major step toward making Saudi Arabia more accessible to international investors while maintaining strong controls over property ownership.