Saudi Arabia has approved the Law of Real Estate Ownership and Investment by Non-Saudis, allowing foreign individuals and entities to own property in designated zones starting January 2026. The reform replaces a 2000-era framework and aligns with Vision 2030 goals to diversify the economy and attract global capital.
Key zones include Riyadh and Jeddah, with restrictions in Mecca and Medina due to religious significance. The Real Estate General Authority will define eligible areas and publish implementing regulations within 180 days via the Istitlaa platform, enabling public consultation.
Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing, called the law “an extension of the Kingdom’s comprehensive real estate reform agenda,” aimed at boosting supply, stimulating FDI, and protecting Saudi interests through procedural safeguards.
Matthew Green, Head of Research at CBRE MENA, added:
“This groundbreaking regulation marks a pivotal moment for Saudi Arabia’s real estate market. By welcoming foreign investment, we anticipate a transformative shift, driving substantial growth in inbound capital over the next five years.”
The reform builds on existing mechanisms like Premium Residency, licensed developers, and real estate funds, and is expected to unlock access to megaprojects such as Neom’s The Line, Oxagon, and Diriyah.
With Riyadh rental yields averaging 8.89% and Jeddah at 7.89%, Saudi Arabia offers competitive returns compared to global benchmarks. However, full market maturity will depend on reforms in valuation standards, dispute resolution, and financing infrastructure.
If implemented effectively, this could be the region’s most consequential investment gateway since Dubai’s 2002 property liberalisation — positioning Saudi Arabia as a frontier market with reliable long-term potential.
