Buying Property in Saudi Arabia: New Rules for Foreign Residents

Foreigners and companies can now purchase freehold real estate in designated zones across Saudi Arabia. The initial phase includes Riyadh and Jeddah, with other cities expected to open in 2026. However, Makkah and Madinah have stricter regulations due to religious sensitivities, requiring special approvals for purchases. Despite the open ownership, Saudi Arabia's model is more structured than some Gulf neighbors, necessitating regulatory compliance and approvals before transactions.

This move aims to attract foreign investment, diversify revenue, and stimulate private sector growth. The government plans to channel capital into real estate and construction, supporting housing supply and attracting global developers. Zoned ownership rules will be available on the "Istitaa" platform, providing clear information on eligible locations and purchase procedures.

Industry experts advise a long-term strategic approach for UAE buyers. Due diligence is crucial, including verifying property location within approved zones and reviewing resale and leasing rules. Buyers should seek advice on taxation, registration, and financing, especially as mortgage availability for foreign buyers is still developing. Early investors might benefit, but professional advice and regulatory clarity are paramount.

This reform aligns Saudi Arabia with other Gulf markets that opened to foreign ownership. If Saudi Arabia follows a similar path as Dubai, Riyadh and Jeddah could become major destinations for cross-border property investment, reshaping the regional landscape.