Saudi Arabia to End Ban on Foreign Property Ownership

Moustafa Daly
Cairo

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Anastasia Barna says the old rules pushed people out. Mahmoud Elwakil says the new ones finally let them in.

Saudi Arabia will open its real estate market to foreigners starting in January 2026, a landmark reform aimed at attracting foreign investment and diversifying the Kingdom’s economy.

Part of the Saudi Vision 2030 agenda, the new law seeks to increase foreign direct investment (FDI), expand real estate supply, and reduce reliance on oil revenues.

Under the law, foreigners will be allowed to purchase property in designated areas, including the two biggest cities, Riyadh and Jeddah. Ownership in the holy cities of Mecca and Medina will remain subject to stricter regulatory conditions due to their religious significance.

The Real Estate General Authority will oversee the rollout and is set to issue executive regulations within six months to define eligibility criteria, application processes, and enforcement mechanisms.

Beyond Premium Residency: Opening doors for all buyers

Mahmoud Elwakil, Saudi Arabia Country Manager at RIF Trust, described the reform as a “very positive development”. He explained that the final details are still unclear until authorities issue the executive regulations, but he predicts the new law would allow non-resident foreigners to purchase property outright without needing a local sponsor.

Currently, the only pathway for foreigners to buy property independently is through the Premium Residency program, which requires a minimum investment of SAR 4 million (US$1 million).

Elwakil also suggested that the reform might pave the way to introducing new real estate-linked residency options with lower investment thresholds, potentially attracting different buyer segments to the market.

Anastasia Barna, CEO at One World Migration, highlighted the appeal of Saudi Arabia’s luxury real estate market to wealthy foreign investors. She noted that many buyers are drawn to the Kingdom’s “booming market” but find the Premium Residency program “complicated and expensive,” which dissuades many investors even if they would meet the high investment threshold.

Saudi eyeing UAE’s playbook

Barna drew comparisons to regional markets, pointing out that in the UAE, rising property prices and the popularity of its Golden Visa program have attracted substantial foreign investment in recent years – an approach Saudi Arabia seeks to emulate.

She explained that while Saudi Arabia has cheaper real estate options [than the UAE], they can’t be accessed through the Premium Residency route, which limits foreign buying in the market to only luxury property that meets the US$1 million threshold.

As such, Barna predicts that allowing foreigners to buy affordable property outright, without the complexities of the Premium Residency or the need for a local sponsor, could unlock significant untapped potential in the market.

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