Saudi Arabia to Open Real Estate Market to Foreign Investors from 2026
In a major policy shift aimed at boosting foreign direct investment (FDI), Saudi Arabia will allow foreigners to purchase real estate within the Kingdom starting January 2026, according to the country’s Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail.
This announcement comes after the Saudi Cabinet approved a new law permitting non-Saudis to own property, a move hailed as a strategic step to strengthen the real estate sector and the national economy.
Law Implementation in 2026 with Public Consultation Phase
Speaking to local media, Minister Al-Hogail said that while the law has been approved, implementation will begin in January 2026. Prior to that, the draft regulation will be uploaded on the government consultation platform ‘Istitlaa’ within the next 180 days for public feedback.
He added:
“The legislation is based on comprehensive economic and social considerations. Ownership will be subject to specific regulations, including geographic restrictions and conditions, particularly in holy cities like Makkah and Madinah.”
Targeted Cities and Strategic Limits
According to the minister, foreign property ownership will be allowed in major urban areas like Riyadh, Jeddah, and Dammam, while restrictions will apply in Makkah and Madinah, where access will be limited and carefully regulated due to the religious and cultural sensitivities of these cities.
These geographic regulations aim to balance investment opportunities with national interests, ensuring that growth does not compromise social harmony or religious sanctity.
Boosting the Real Estate Market and FDI
The law is expected to create a more dynamic and attractive real estate sector by:
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Encouraging foreign investment in housing and commercial development
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Enabling international real estate developers to enter the Saudi market
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Supporting Saudi Vision 2030, the Kingdom’s ambitious roadmap for economic diversification
Minister Al-Hogail emphasized:
“This reform aims to increase transparency, attract international developers, and offer better housing solutions. It’s a major leap forward for our real estate sector.”
Conclusion
With this legislative change, Saudi Arabia joins a growing list of Gulf countries that have opened their real estate sectors to foreign investors. The move aligns with the Kingdom’s vision to diversify its economy beyond oil and enhance urban infrastructure through private investment.
The public will be able to provide feedback on the draft law via the official portal, Istitlaa, making it a collaborative reform effort between the government and society.