Saudi Arabia’s 2026 Foreign Property Law Sparks Historic Real Estate Boom, Revolutionizing Travel and Residency Opportunities for Expats and Global Investors

Published on November 22, 2025

Saudi Arabia, a country renowned for its rich heritage and rapidly developing urban centers, is poised to undergo a landmark transformation in its real estate market. Starting in January 2026, the Kingdom will implement the Law of Real Estate Ownership by Non-Saudis, a revolutionary move that will allow foreign visitors and residents to purchase homes, land, and farms within designated geographical zones. This pivotal change aligns with Saudi Arabia’s Vision 2030 and aims to create more opportunities for international residents, investors, and travelers who are considering longer stays, investment, or relocation.

Broadening Opportunities for Foreign Residents and Visitors

For many years, foreign nationals faced significant restrictions when attempting to own property in Saudi Arabia. The introduction of the new law, approved by Royal Decree No. M/14 in July 2025, dismantles many of the previous barriers. This landmark decision replaces the old statute from 2000, opening up more property ownership opportunities. Now, eligible foreign buyers include individuals, foreign-registered companies, Saudi companies with foreign shareholders, diplomatic missions, and even nonprofit organizations.

A key player in this transformative process will be the Real Estate General Authority (REGA), which will oversee the management of foreign property ownership. The REGA will provide detailed maps outlining the specific cities and zones where foreign ownership is permitted. Prominent areas such as Riyadh, Jeddah, and other governorates are expected to see the most interest from foreign buyers, which will likely drive an increase in tourism and long-term residency in these regions.

The move is expected to offer a tremendous boost to Saudi Arabia’s economy. By enabling foreign ownership, the Kingdom is looking to stimulate economic diversification by attracting international investment in real estate. This will encourage a growing number of visitors and expatriates, significantly impacting the tourism sector and providing a foundation for new urban developments, hospitality ventures, and infrastructure improvements.

However, while foreign ownership in most areas of Saudi Arabia is being expanded, Mecca and Madinah, the Kingdom’s most sacred cities, will continue to be restricted predominantly to Muslim buyers. This ensures that the religious sanctity of these cities is preserved while still allowing for broader foreign participation in other regions.

What This Means for Travelers and Expats

The new law represents more than just a shift in property ownership—it provides greater stability and peace of mind for foreigners looking to settle in Saudi Arabia. For many expatriates, especially those who previously had to rely on short-term rental agreements or adhere to restrictive visa policies, the opportunity to purchase property marks a significant change. Business travelers and long-term residents will find this new path to homeownership especially valuable as it enables them to integrate more fully into Saudi society.

The law also serves as a key component of Saudi Arabia’s broader economic diversification strategy. As the country seeks to reduce its reliance on oil revenues, one of the primary ways it plans to do so is by fostering a more inclusive economy—one that attracts a diverse population of expatriates, international businesses, and tourists. By opening up the real estate market, the Kingdom hopes to stimulate the growth of various sectors such as construction, hospitality, retail, and services, which will, in turn, create more job opportunities and enhance the overall quality of life in Saudi cities.

Moreover, the law facilitates greater social integration for expatriates. By offering foreign nationals the chance to purchase property, Saudi Arabia fosters a stronger connection between newcomers and their host communities. This not only enhances the experience for residents but also enriches the culture by promoting cross-cultural exchange and collaboration.

Ensuring Market Transparency and Safeguards

Saudi Arabia is taking a careful, measured approach to implementing this law, ensuring that foreign property ownership is managed transparently and securely. All transactions must be officially registered through the Real Estate Registry, which helps protect both buyers and sellers while ensuring full compliance with the law. These regulatory safeguards are designed to maintain trust in the real estate market and prevent fraudulent activities.

To bolster the security of the market, Saudi Arabia has established strict privacy requirements and full disclosure protocols, which aim to deter any potential fraud. Any violators of these regulations face severe penalties, including hefty fines up to 10 million Saudi Riyals and potential property confiscation. These measures are meant to safeguard investors’ interests while ensuring that the market remains stable.

Foreign buyers should also be prepared for a combined tax and fee burden that amounts to approximately 10% of the property value. While this may seem like a significant cost, it is a reasonable measure to help maintain market balance and prevent any speculative bubbles. These regulations reflect Saudi Arabia’s commitment to long-term market stability and a sustainable property ownership framework for all.

Extended Impacts on Travel and the Economy

The ripple effects of this law are expected to extend beyond the real estate market, influencing the broader travel ecosystem. With increased foreign ownership, Saudi Arabia anticipates an influx of longer-stay visitors who will contribute to the economy by residing, working, and engaging in the local culture. This influx can only enhance the richness and authenticity of the country’s travel experiences, as more international residents integrate into the Kingdom’s communities.

On the cultural front, a sustained foreign presence is expected to promote greater mutual understanding and social cohesion. By creating opportunities for foreigners to invest and reside in Saudi Arabia, the Kingdom is fostering a more diverse and inclusive society. This cultural exchange will undoubtedly enrich local communities and enhance the Kingdom’s global reputation as a welcoming and forward-thinking destination.

Economically, this transformation will stimulate urban growth, generate new job opportunities, and expand service sectors such as transportation, tourism, and retail. As the demand for goods and services increases, Saudi Arabia’s economy will be able to diversify further, increasing its resilience and appeal to international investors.

How Travelers Can Prepare and Engage with the New Opportunities

For those interested in property ownership, it is essential to stay informed about the latest updates from official Saudi sources, such as the Real Estate General Authority and the Ministry of Tourism. Understanding the eligibility criteria, designated ownership zones, and legal compliance protocols will be crucial before making any property investment decisions.

With this new legal framework, Saudi Arabia is issuing a historic invitation to foreign nationals, offering them the chance to become more deeply connected to the Kingdom’s evolving narrative. For travelers eager to explore, invest, or even settle in Saudi Arabia, this opportunity marks the beginning of a new chapter—one that not only opens doors to buildings but also to a deeper and more meaningful engagement with this dynamic country.

A New Era of Property Ownership: Unlocking Unprecedented Opportunities for Foreigners in Saudi Arabia

Saudi Arabia’s 2026 foreign property law is a groundbreaking move that blends respect for tradition with an openness to modernity. This change opens up unprecedented opportunities for travelers, investors, and expatriates, allowing them to engage with Saudi Arabia on a more permanent and meaningful level. As the Kingdom continues to modernize and diversify, this real estate shift will play a central role in reshaping the country’s economic and social landscape. For anyone considering a longer stay, relocation, or investment, this law marks an exciting new era for foreign ownership in Saudi Arabia.