Saudi’s property ownership law for foreigners: What you need to know about it

The Saudi Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, approved a new law regulating property ownership by non-Saudis during its weekly session on July 8. The landmark legislation is set to take effect in January 2026, marking a significant step in the country’s efforts to attract foreign investment and diversify its economy.

Read-Saudi Arabia opens doors to foreign investors in real estate

The meeting began with the Crown Prince briefing cabinet members on his recent diplomatic engagements, including discussions with Indonesian President Prabowo Subianto and a phone call with German Chancellor Friedrich Merz. The cabinet praised the outcomes of the inaugural Saudi-Indonesian Supreme Coordination Council meeting, emphasizing strong bilateral relations and several signed agreements between private-sector players in both nations, a Saudi Gazette report said.

The agreements span key sectors such as clean energy, petrochemicals, and aviation fuel services, aligning with the shared ambition to build an advanced economic partnership.

New law aims to boost investment, ensure market balance

Acting Minister of Media Dr Essam bin Saeed confirmed the Cabinet’s decision in a statement to the Saudi Press Agency (SPA), highlighting that the new property law is part of a broader strategy to stimulate economic growth while maintaining social and market balance.

Saudi Minister of Municipal and Rural Affairs and Housing, Majed Al Hogail, also Chairman of the Board of Directors of the Real Estate General Authority, praised the leadership for approving the updated legislation. He noted that it is an extension of ongoing reforms aimed at developing the real estate sector and attracting foreign direct investment.

“This law will help increase real estate supply by bringing in international investors and developers,” Al Hogail said. “At the same time, it ensures market stability through controlled procedures and geographic restrictions.”

The law outlines that property ownership for non-Saudis will be allowed in specific geographic areas, including Riyadh and Jeddah, while ownership in Makkah and Madinah will be subject to special conditions. These measures are designed to balance openness to investment with national and cultural considerations.

Executive regulations, public consultation expected soon

Under the law, the Real Estate General Authority is tasked with proposing the zones where non-Saudis may own property or acquire property rights. The executive regulations will be published on the Istitaa public consultation platform within 180 days of the law’s publication in the official Umm Al Qura Gazette. The public will be invited to offer feedback and suggestions.

These regulations will define the procedures for acquiring property, compliance mechanisms, and enforcement protocols. They will also detail how the law aligns with other statutes, including the Premium Residency Law and GCC agreements that govern real estate ownership for citizens of Gulf Cooperation Council states.

The law explicitly integrates with existing frameworks that grant foreigners privileges to own property in Saudi Arabia, ensuring harmony across legal and regulatory platforms.

Saudi highlights commitment to economic cooperation

During the session, the cabinet reviewed Saudi Arabia’s ongoing contributions to global economic growth, reaffirming its commitment to multilateral cooperation and market stability. This includes continued coordination with OPEC+ oil producers to support petroleum market balance.

The cabinet also welcomed Riyadh’s selection as the host city for the 21st General Conference of the United Nations Industrial Development Organization (UNIDO), scheduled for November. The event will bring together global stakeholders to address challenges in sustainable manufacturing, technological innovation, and industrial transformation.

Digital safety, cybersecurity, and technology achievements recognised

In other developments, the cabinet applauded the UN Human Rights Council’s unanimous adoption of a Saudi-led resolution on protecting children in the digital space. The initiative stems from the “Child Online Safety” campaign spearheaded by Crown Prince Mohammed bin Salman and reflects Saudi Arabia’s growing leadership in cyber safety.

The cabinet also celebrated the country’s continued recognition in global cybersecurity, citing its top ranking in the 2025 World Competitiveness Yearbook. These achievements underscore Saudi Arabia’s rapid digital transformation and efforts to localise technology, expand international partnerships, and strengthen digital infrastructure.

Dr Essam noted that the country’s first-place ranking in the 2025 International Telecommunication Union (ITU) ICT Development Index further reflects a thriving digital economy now valued at SAR495bn. The index ranks countries based on digital inclusion, infrastructure, and innovation.

Additional cabinet decisions: Transport, health, and social development

The cabinet approved several other key measures during the session, including:

• The updated National Transport and Logistics Strategy, supporting infrastructure expansion and trade facilitation.
• Approval of the organisational structure for the General Authority for Irrigation.
• Adoption of World Drowning Prevention Day, to be observed annually on July 25, as part of global public health awareness efforts.

To support financially vulnerable citizens, the cabinet approved a directive for the Social Development Bank to launch a guarantee program. The initiative will enhance access to credit and financing for underserved groups, enabling economic participation and social mobility.

Crackdown on narcotics trafficking

Cabinet members also praised the recent progress in combating drug trafficking, citing successful operations targeting organised crime networks involved in narcotics distribution. These efforts are part of broader campaigns to enhance public health and safety across the country.