Saudi Arabia’s Cabinet has approved a new law to allow non Saudis to own property in Riyadh, Jeddah, and under special conditions in Makkah and Madinah from January 2026.
The Real Estate General Authority will define where foreigners can buy property and gather public feedback.
The move aims to attract investors and support Vision 2030 economic goals while ensuring balance in the property market.
Approving New Law
The newly approved legislation is a major shift in Saudi Arabia’s approach to foreign investment in real estate. Under this law, non-Saudis will be permitted to purchase property in specific regions, primarily in major urban centers like Riyadh and Jeddah.
However, ownership in the holy cities of Makkah and Madinah will come with additional stipulations to ensure that the interests of Saudi citizens are safeguarded.
This initiative is part of a broader strategy to stimulate economic growth and align with the ambitious Vision 2030 framework, which seeks to diversify the economy and reduce reliance on oil revenues.
Implementation Timeline
The law is set to take effect in January 2026, providing ample time for the Real Estate General Authority to establish the necessary regulations and guidelines.
This authority will be responsible for identifying the specific geographic areas where foreign ownership will be permitted and will publish these details on the Istitlaa public survey platform.
Public Consultation Process
Within 180 days of the law’s publication in the official Umm Al-Qura Gazette, the Real Estate General Authority will seek public feedback on the proposed regulations. This consultation process is crucial for ensuring that the new law meets the needs of both foreign investors and Saudi citizens.
Eligible Cities
While the law opens up opportunities for foreign ownership, it does impose geographic restrictions. Non-Saudis will primarily be allowed to purchase property in:
- Riyadh: As the capital city, Riyadh is a focal point for economic activity and investment with many major real estate projects, including $235 Million Villa Project, Avenues Riyadh, New Murabba, King Salman Park, Elie Saab Branded Residences, and SEDRA.
- Jeddah: Known for its strategic location along the Red Sea, Jeddah is a key commercial hub and has many transformative real estate projects on the horizon, including MARAFY, Jeddah Trump Tower, Jeddah Central Destination, and Jeddah Tower.
- Makkah and Madinah: Ownership in these cities will be subject to special conditions due to cultural and religious significance. Both cities have been undergoing major projects with ALMANAR Makkah, Masar Makkah, The Thakher project, Rua Al Madinah, KEC Madinah Project, and Islamic World District Madinah.
Special Conditions for Holy Cities
The regulations governing property ownership in Makkah and Madinah will be particularly stringent. These conditions are designed to ensure that the sanctity of these cities is maintained while still allowing for some level of foreign investment.
Objectives of the Law
The primary objectives of this law include:
- Attracting Foreign Investment: By allowing non-Saudis to own property, the Kingdom aims to draw international investors and real estate developers, thereby increasing the overall supply of real estate.
- Economic Diversification: This initiative supports Saudi Arabia’s Vision 2030 goals by diversifying the economy and creating new revenue streams outside of oil.
- Market Stability: The law includes mechanisms to maintain a balance in the property market, ensuring that the interests of local citizens are protected.
Boosting Real Estate Supply
Majed Al-Hogail, the Minister of Municipal and Rural Affairs and Housing, has emphasized that the updated law will significantly increase the supply of real estate in the Kingdom.
This influx of foreign investment is anticipated to lead to the development of new residential and commercial properties, thereby meeting the growing demand in the market.
Protecting Citizen Interests
While the law opens doors for foreign ownership, it also includes provisions to protect the interests of Saudi citizens. The government has implemented strict procedural controls and compliance measures to ensure that the property market remains balanced and equitable.
Ensuring Market Control
The Real Estate General Authority will oversee the implementation of the law, ensuring that foreign ownership does not disrupt the local market. This includes monitoring property transactions and enforcing regulations to maintain market stability.
Alignment with Vision 2030
This legislative change is closely aligned with Saudi Arabia’s Vision 2030, which seeks to transform the Kingdom into a global investment destination. By diversifying the economy and enhancing the real estate sector, the government aims to create a more sustainable economic model.
The new property ownership law is expected to support infrastructure development across the Kingdom. As foreign investors enter the market, there will be increased demand for supporting services and facilities, further driving economic growth.
Real Estate Boom Awaits
The approval of the new property ownership law by Saudi Arabia’s Cabinet represents a landmark development in the Kingdom’s efforts to attract foreign investment and stimulate economic growth.
By allowing non-Saudis to own property in designated areas, the government is taking a significant step towards diversifying the economy and enhancing the real estate sector.
Planned Real Estate Projects in Riyadh
Dar Global and Mouawad’s Villa Project
Dar Global, an international real estate developer, has partnered with luxury jeweler Mouawad to unveil a $235 Million Villa Project in North Riyadh, close to the World Expo 2030 site.
The development will include 200 exquisite villas, similar to the prestigious Bulgari Residences, and aims to boost Riyadh’s reputation as a top luxury destination.
Scheduled for completion in 2026, this project represents Dar Global’s debut in Saudi Arabia and Mouawad’s entry into the real estate market.
The Avenues Riyadh
The highly anticipated Avenues Riyadh project, valued at $4.58 billion, has reached 44.5% completion and is scheduled to open in early 2026.
Situated in northern Riyadh, this iconic development, inspired by Salmani architecture, will cover 390,000 square meters and host one of the Middle East’s largest malls.
It will also feature three luxury hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad. This project supports Saudi Vision 2030’s goal of making Saudi Arabia a leading global tourist destination.
Boulevard Business Park
Saudi Arabia’s General Entertainment Authority has unveiled plans for a $266 million business park at Boulevard City in Riyadh.
Named the “Boulevard Business Park,” this new project will consist of nine buildings with views of the Boulevard City Fountain, an outdoor art gallery, and a suspended pool.
The initiative aims to promote creativity, innovation, and support for entrepreneurs and businesses, in line with Saudi Vision 2030.
New Murabba
The most recent video demonstrates significant advancements in the construction of the New Murabba, the largest contemporary downtown in northwest Riyadh.
A remarkable 5 million cubic tonnes of soil have already been removed, and the project is making notable headway.
This ambitious venture covers an area of 19 square kilometers and will include the distinctive cube-shaped Mukaab at its heart, capable of holding 20 Empire State Buildings.
King Salman Park
King Salman Park, the largest urban park in the world, is scheduled to open in 2024, covering a total area of 16 square kilometers.
The park includes 11 square kilometers of greenery and water features in the heart of Riyadh.
Its major attractions will be a Royal Arts Complex, an equestrian center, an 850,000-square-meter Royal golf course, and the city’s first skydiving center.
In addition, the park will offer over 2,000 hotel rooms and aims to elevate the quality of life in the city, following the goals of Saudi Vision 2030, thereby improving Riyadh’s global ranking.
Riyadh Rise Tower
Saudi Arabia Holding Co. has unveiled its plans for the Rise Tower, which is set to become the world’s tallest skyscraper in Riyadh, surpassing even the renowned Burj Khalifa. The unveiling of Rise Tower’s plans is a significant component of the broader North Pole Project in Riyadh.
Rise Tower is anticipated to exceed 828 meters to outshine the Burj Khalifa. There are speculations that Rise Tower might ascend to a staggering 2 kilometers, doubling the Burj Khalifa’s current height.
With these transformative projects, Riyadh, one of the world’s top 15 fastest-growing cities, is transforming into a city known for its accessibility and quality of life to become among the world’s top 10 cities with an investment of $1 trillion over the next seven years.
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