Expats to soon own property in Saudi Arabia? Investors cheer landmark move

Dubai: In a game-changing move for global investors and expatriates, Saudi Arabia will allow non-nationals to buy property in designated zones starting January 2026, marking a major shift in the Kingdom’s real estate landscape.

The long-anticipated reform, approved by the Saudi Cabinet, is seen as part of the country’s wider efforts to attract foreign investment, increase housing supply, and diversify its economy beyond oil.

While full details are still being finalized, officials confirmed that non-Saudis will be permitted to own real estate in key cities like Riyadh and Jeddah, while ownership in Mecca and Medina will remain under special regulatory conditions.

Investors cheer move

Investors with shareholding across major real estate firms benefitted, as stocks soared following the news. Retal Urban Development Co. and Saudi Real Estate Co. jumped over 5%, helping the Tadawul Real Estate Index hit its highest level since May.

“This move will likely have very positive and broad implications for multiple sectors in the kingdom, evaluate experts, with real estate developers, cement companies, and banks are all expected to benefit.

New ownership rules?

The law is part of Saudi Arabia’s broader real estate reform agenda, and was described by Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing, as “a step forward in stimulating foreign direct investment (FDI) and supporting sustainable growth.”

The Real Estate General Authority will oversee the process, identifying areas eligible for foreign ownership and setting out rules, which are expected to be released for public feedback within 180 days on the government’s “Istitlaa” platform.

These rules will outline:

• Who qualifies to own property

• How to apply and register purchases

• Geographic zones open to foreign ownership

• Conditions for ownership in sensitive areas like Mecca and Medina

What will happen next?

• The new law is set to take effect in January 2026.

• Executive regulations detailing the “where, who, and how” will be shared within six months.

• Authorities say the policy has been designed with safeguards to protect Saudi citizen interests while encouraging global investor participation.

The move builds on earlier efforts to open up the property market. In fact, Saudi Arabia recently allowed foreign investors to own shares in real estate firms operating in the holy cities — a sign the kingdom has been laying the groundwork for this broader reform.