New Non-Saudi Property Ownership Law Takes Effect

Saudi Arabia has introduced a new Law of Real Estate Ownership and Investment by Non-Saudis, replacing the earlier 2000 law and significantly widening the property rights that non-Saudis may acquire in the Kingdom. On 23 June 2026, the Cabinet approved the law's Executive Regulation and endorsed the specific geographic areas designated for non-Saudi property ownership.

Under the new framework, non-Saudis may own real estate or acquire in rem rights within designated geographical zones approved by the Council of Ministers, based on proposals from the Real Estate General Authority (REGA) and the Council for Economic and Development Affairs. REGA is responsible for publishing lists of authorized and prohibited zones. The law covers ownership, usufruct, easements, and other recognized real estate interests, moving beyond the previous rules that were largely limited to business premises, staff housing, and personal residence.

Who can own property

For foreign individuals, residents may own a personal residence subject to residency status, Interior Ministry permission, and registration in the Real Estate Registry, with exceptions for Makkah and Madinah. Muslim individuals may own property throughout the Kingdom, including Makkah and Madinah, subject to the law and any excluded areas. A residence may also be acquired by those holding an iqama with Interior Ministry permission, special permission from the Council of Ministers, or a Privileged Residency Permit.

Private companies incorporated in Saudi Arabia under the Companies Law with 100% foreign ownership may own property across the Kingdom, subject to additional controls. Non-Saudi investors licensed for commercial activity may purchase or rent real estate needed for their business.

Why it matters: the changes tie foreign commercial property investment to Cabinet-approved zone lists and REGA publications, giving residents and investors clearer rules for buying, renting, and investing in Saudi real estate.

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