Saudi Arabia Opens Property Market to Foreign Buyers in 2026

What Has Changed?

Starting January 2026, Saudi Arabia’s Law of Real Estate Ownership by Non-Saudis comes into force, enabling non-Saudi individuals and entities to acquire real estate rights across the Kingdom under clearly defined conditions

Under the new rules:

1. Foreign individuals and companies can own property or obtain real rights in designated geographic zones determined by the Saudi government.
2. Commercial, industrial, and agricultural properties are broadly open to foreign ownership across all cities.
3. Residential ownership is permitted in most areas, but with specific conditions and geographic limits.

How It Works for UAE Residents and Other Foreign Buyers

For UAE residents (and other foreigners), the new framework means property ownership in Saudi Arabia is now legally possible, but subject to the following key points:

1. Designated Zones & Geographic Limits

Foreign ownership rights are tied to designated zones that the Council of Ministers will define in consultation with authorities. In cities such as Riyadh and Jeddah, specific areas will be open to foreign buyers, while other zones may remain restricted or require additional approvals.

2. Residential Property Rules

3. Holy Cities and Special Conditions

The holy cities of Makkah and Madinah generally remain more restricted due to cultural and religious considerations. Foreign ownership in these cities may still be limited or subject to special conditions, especially for residential properties.

4. Registration, Fees, and Compliance

All foreign buyers must register with the relevant authorities before acquisition. Transactions typically require formal registration in the national real estate registry and are subject to additional fees (e.g., a transfer fee of up to 5%). Violations such as incorrect information or purchases outside designated zones can incur significant fines of up to several million Saudi riyals.

Why Saudi Arabia Is Opening Up Now

The reform reflects Saudi Arabia’s strategy to diversify its economy, attract foreign investment, and develop its real estate sector. By creating a structured, transparent framework for non-Saudi ownership, the Kingdom aims to draw capital, expertise, and development activity into its property market, an asset class historically closed to most foreign buyers.

What UAE Residents Should Consider

For UAE investors and expatriates considering Saudi property:

1. Due diligence is essential: Regulatory boundaries and designated ownership zones will shape where and what properties can be bought.
2. Legal and financial advice is recommended to navigate registration, approvals, and fee structures.
3. Market dynamics differ from the UAE’s more mature freehold markets; Saudi Arabia’s framework is still rolling out guidelines and zones.

Bottom Line

From January 2026, Saudi Arabia will allow UAE residents and other foreigners to own property under a new legal regime that is more open than ever before but remains structured and regulated. While opportunities are expanding, the practical process will depend on designated zones, residency status, registration requirements, and compliance with local rules, making preparation and professional guidance crucial for prospective buyers.