Saudi Arabia to open real estate market to foreigners in 2026

Riyadh: The Kingdom of Saudi Arabia (KSA) is close to finalising regulations that will allow foreign nationals to buy property across the Kingdom from January 2026, including in the holy cities of Makkah and Madinah.

The reform marks a significant shift in national policy and aims to attract greater international investment into the real estate market.

For many years, foreign nationals faced strict barriers to owning property in Saudi Arabia, but that is changing under a new law approved by Royal Decree No. M/14 in July 2025, which lays the groundwork for foreign ownership within designated zones.

Bloomberg reported, citing Fahd bin Sulaiman from the General Real Estate Authority (REGA), that officials are reviewing which areas in Riyadh, Jeddah, Makkah and Madinah will be made accessible to foreign buyers. The approved zones will be published once the rules are formally issued.

Foreign ownership within the approved areas is expected to be capped between 70 and 90 per cent, a measure intended to encourage participation while safeguarding domestic interests. The limits will differ based on urban planning needs and local market conditions.

Opening parts of Makkah and Madinah to foreign ownership would mark a notable shift for Saudi Arabia, where access to property in both cities has historically been heavily restricted.

Alongside these changes, Saudi Arabia is also preparing to introduce fractional property ownership, enabling foreign investors to purchase tokenised stakes in real estate without physically visiting the Kingdom.

Speaking at Cityscape Global in Riyadh, held from 17 to 20 November, Real Estate Registry Authority CEO Mohammad Al-Suliman told Arabian Gulf Business Insight (AGBI) that the system would allow investors to “take advantage” of the Kingdom’s strong economic performance by participating in the real estate market remotely

The upcoming regulations form part of wider efforts to modernise the sector, diversify the economy and draw international capital under the Vision 2030 programme.

Further details outlining eligibility requirements, purchase procedures and compliance obligations are expected to be released with the final regulatory package ahead of the 2026 launch.