Saudi Arabia is getting ready to make a big move towards economic liberalisation by letting foreigners buy property in some areas starting in January 2026. This historic choice comes after the Saudi Cabinet approved a new property law that aims to bring in foreign direct investment and grow the Kingdom’s non-oil economy. The move is expected to change the real estate market and get people from other countries interested in one of the most dynamic markets in the Middle East.
Let’s look into what this means for people who live in Saudi Arabia, people who invest in Saudi Arabia, and the country’s economy as a whole.
A Strategic Move Under Vision 2030
The new property law in Saudi Arabia is part of the larger Vision 2030 plan, which aims to make the country’s economy more diverse and less dependent on oil revenues. Real estate is one of the main areas being worked on to help with this change. The government is building futuristic cities and smart infrastructure to bring in talent and investment from around the world. These projects include NEOM, The Line, and Qiddiya.
Majed Al Hogail, the Minister of Municipal and Rural Affairs and Housing, says that the new law’s goals are to increase the number of homes available, draw in international real estate developers, and encourage foreign direct investment. Saudi Arabia is also trying to make its economy more competitive on the world stage by modernising its rules and regulations.
Where Can Foreigners Buy Property?
Under the new law, foreigners will be able to own property in certain areas, including major cities like Riyadh and Jeddah, where housing, tourism, and business are all growing quickly right now. These cities have strong infrastructure, good places to live, and a growing need for both residential and commercial real estate.
Mecca and Medina, on the other hand, will still be more strictly controlled because they are important to Islam. There may be some form of ownership possible, but it will come with rules set by the executive.
The Real Estate General Authority will define the exact geographic zones available for foreign ownership. The executive regulations, which will be released within 180 days of the law’s official publication, will outline:
- Eligibility criteria for foreign buyers
- Application procedures
- Legal rights and restrictions
- Ownership documentation
- Compliance and penalties for violations
These rules will be open for public consultation via the “Istitlaa” platform, ensuring community feedback is considered.
What Does This Mean for Investors and Expats?
This change is a big chance for foreign investors and people from other countries living in Saudi Arabia. Before, foreigners were mostly not allowed to own real estate, which kept them from being able to take part in one of the region’s fastest-growing markets.
Now, international investors will have access to:
- Residential properties for personal use or rental
- Commercial spaces for business expansion
- Land development projects with potential for high returns
This gives expats, especially those who have lived there for a long time, a chance to buy a home, get long-term residency through ownership, and benefit from the property’s value going up. The new policy works well with other changes, like the Premium Residency Program, which gives foreign investors more reasons to live and work in the Kingdom.
The real estate sector is expected to see increased activity in:
- Construction and housing supply
- Real estate financing and mortgage growth
- Entry of international developers and property management firms
- Standardization and transparency in the property market
Preparing for 2026 with the Right Support
As Saudi Arabia gets ready to open up its real estate market, investors and people who live there should start making plans. To have a smooth and successful experience buying property, you need to know the laws, rules, and application processes in your area.
If you want to take advantage of this exciting opportunity, working with a reliable local expert can make a big difference. Expert advice makes sure that everything is done correctly and clearly at every step, from helping with property zones to handling paperwork and legal requirements.
As 2026 gets closer, Saudi Arabia is becoming a popular place for people to invest in real estate around the world. Now is the time for people who want to buy property to look into what the Kingdom has to offer.