Saudi Arabia has passed a landmark real estate law allowing foreign ownership in designated zones of Riyadh and Jeddah, set to take effect in January 2026. The reform is a strategic move to attract global investment and diversify the Kingdom’s economy beyond oil, aligning with its Vision 2030 agenda.
The Real Estate General Authority will define eligible zones and release detailed regulations outlining ownership procedures, investor qualifications, and compliance mechanisms. Strict controls will be implemented to safeguard national priorities and citizen interests.
“This move will raise real estate supply by attracting investors and development firms to the Saudi market,” said Majed bin Abdullah Al-Hogail, Minister of Municipal Rural Affairs and Housing, in a statement to the Saudi Press Agency.
The reform is expected to trigger a property boom, enabling foreign companies to invest in housing for staff and allowing prominent expats to own homes in the Kingdom. It mirrors Dubai’s transformation, where foreign ownership helped elevate property values to global benchmarks seen in New York and London.
Saudi real estate stocks rallied following the announcement, continuing last year’s momentum when the sector’s GDP contribution nearly doubled—from 5.9% in 2023 to 12% in 2024. Cities like Riyadh, Jeddah, and Dammam are witnessing rising housing demand, driven by population growth and infrastructure expansion.
The UAE’s model—allowing 100% foreign ownership of brokerages and development firms—serves as a blueprint for Saudi Arabia’s ambitions. With this reform, the Kingdom is positioning itself as the next global real estate hotspot, offering investors a gateway into one of the Middle East’s fastest-evolving markets.
