Non-Saudis get property rights in Saudi Arabia, holy cities reserved for Muslims

Saudi Arabia is planning to expand property ownership rights for both individuals and businesses under a newly approved law by the Real Estate General Authority (REGA), as part of its bigger push under Vision 2030 to increase investment, diversify the economy and upgrade urban development standards.

The new reform gives “non-Saudis”, including foreign individuals, foreign companies, Saudi firms with foreign shareholders, and certain non-profit and diplomatic entities, the opportunity to own or acquire real-estate rights in the Kingdom, subject to designated geographic zones and regulatory conditions. 

REGA states that the reform is intended to tap the real-estate market, lift project quality, generate jobs for Saudi citizens and align domestic standards with global practices for foreign investment. 

Under the law, the Council of Ministers will define the geographical zones where ownership by non-Saudis is allowed, including major urban markets, special economic zones and major development projects such as NEOM, Qiddiya and Red Sea Global. Importantly, the holy cities of Makkah and Madinah remain subject to stricter controls, non-Saudis’ ownership there will be limited and will require further regulations. 

The law also introduces a requirement for registration of non-Saudi ownership transactions and commands full disclosure of relevant information. Additional fees and taxes apply, non-Saudi owners will face combined charges of up to 10 % of transaction value, and violations could lead to fines of up to 10 million Saudi riyals and forced public auction of the property. 

While the law sets the broad framework, REGA has yet to publish the detailed implementing regulations, maps of approved ownership zones, precise types of permissible rights and full procedural guidance. 

The new regime is expected to come into force in January 2026, after 180 days from its publication in the official gazette. 

By opening the door to non-Saudi participation in real-estate ownership, the Kingdom aims to upgrade the non-oil economy, improve supply and investment in real-estate, and enhance urban architectural standards, all backing the momentum of Vision 2030.