Saudi Arabia to Permit Foreign Property Ownership Across Designated Zones from January 2026

Saudi Arabia has reportedly announced a landmark policy reform that will allow foreign individuals and companies to own real estate in designated zones across the Kingdom starting January 2026. This significant move is part of the nation's broader economic diversification strategy aimed at attracting global capital and strengthening investment flows into the Saudi property market.

Scope of Foreign Property Ownership Rights

According to reports, the new regulations will permit foreigners to purchase a wide range of property types including residential, commercial, agricultural, and industrial assets. The reform is reportedly not limited to small-scale transactions, as foreign investors and corporations will also be eligible to acquire land parcels and participate in large-scale developments, including mega-projects within the Kingdom.

Industry sources indicate that the scheme is designed to simplify the acquisition process and open the Saudi real estate market to a diverse spectrum of buyers, including individual investors, foreign-registered companies, and foreign-owned enterprises. This development could be of particular interest to NRIs and global investors exploring property opportunities in emerging markets.

Special Restrictions for Holy Cities

While major commercial centres such as Riyadh and Jeddah are expected to have open-zone ownership policies, the holy cities of Mecca and Madinah will reportedly be subject to tighter regulations. Sources suggest that ownership eligibility in these sacred locations may be restricted to Muslim buyers, with precise zone demarcations to be published by the regulatory authority prior to implementation.

Implications for Global Investors and Real Estate Markets

The reform is expected to transform Saudi Arabia into a potentially attractive destination for high-net-worth individuals and institutional investors seeking access to regulated property markets. The opening could reportedly enhance liquidity, stimulate demand, and boost investor confidence in Saudi real estate projects.

For expatriates, NRIs, and global high-net-worth individuals, this presents a new opportunity to own property or land in a country that has historically maintained strict restrictions on foreign ownership. Those familiar with NRI investments in international real estate may find the Saudi market an interesting addition to their portfolio considerations.

Key Considerations Before Investing

Industry experts advise potential investors to closely monitor several critical factors before committing capital to the Saudi property market:

• Official publication of detailed maps and zone specifications by the regulatory authority clarifying exactly which areas will be open for foreign ownership
• Applicable eligibility criteria, particularly for holy cities and special-use zones, including conditions related to nationality, religion, or company structure
• Regulatory guidelines covering taxation, compliance requirements, registration procedures, and transparency standards under the new legal framework
• Market response indicators including property price movements, demand from international buyers, and liquidity conditions for resale or long-term holdings

Understanding the steps for safe property investment and conducting thorough due diligence will be essential for anyone considering entry into this newly opened market. Investors should also be aware of hidden costs associated with property purchases in any international market.

Disclaimer: This news article is for informational purposes only and should not be construed as investment advice. Readers are advised to conduct independent research and consult with qualified financial and legal professionals before making any property investment decisions. Real estate markets are subject to risks, and regulatory frameworks may change. The information provided is based on available reports and may be subject to updates or modifications by the relevant authorities.