Saudi Arabia opens property market to foreign buyers

In a landmark policy shift, Saudi Arabia has passed a new law that will allow foreign nationals to purchase property in select urban zones, with implementation set to begin in January 2026.

Under the legislation, foreigners will be permitted to buy real estate in designated areas of Riyadh and Jeddah, as part of the Kingdom's broader push to attract international investment and diversify its economy under Vision 2030.

Officials have indicated that future access to property ownership in the holy cities of Mecca and Medina may also be granted to foreigners, though such permissions would be subject to strict regulations.

The announcement has already had a notable impact on Saudi Arabia's housing sector, with real estate stocks climbing in response to anticipated demand. The Real Estate General Authority is expected to release detailed guidelines and implementation mechanisms in the coming months.

This move is widely seen as a step toward positioning Saudi Arabia as a competitive player in the global luxury housing market. The decision aligns with other high-profile development initiatives across the Kingdom, including the construction of the 'Muk'ab' skyscraper in Riyadh — the centerpiece of the New Murabba downtown project — and the rollout of luxury Red Sea resorts, some of which have already begun operations.

Analysts view the foreign ownership law as a potential catalyst for increased tourism, infrastructure expansion, and capital inflows in the years leading up to 2030.