As part of a landmark move, Saudi Arabia has announced that foreigners will be permitted to own property in several areas within major cities such as Riyadh and Jeddah. This decision marks a significant step in Saudi Arabia foreign property ownership rules. However, special conditions are imposed for Makkah and Madinah. The newly enacted regulation is to take effect starting January 2026. Meanwhile, the detailed guidelines will be issued through the official "Istithlaa" platform in the next few months.
Why This Matters
This decision aligns with Saudi Vision 2030, as the Kingdom continues to diversify its economy and actively attract foreign investment. Authorities are also working to strengthen non-oil sectors as part of this broader national strategy. Foreign residents comprising almost 40% of the total population will now be able to set up more permanent roots in the Kingdom. This is a factor that analysts speculate will trigger a whirlwind in the real estate market.
"This is a significant and transformational change for the Saudi market," claimed Mr. Haider Tuaima, head of real estate research at ValuStrat. "Allowing long-term expatriates to own property can increase stability, decrease tenant mobility, and encourage long-term financial planning."
What's Changing?
Saudi Arabia had confined property ownership to restricted types under its Premium Residency (Golden Visa). The new ruling opens new investment opportunities in the kingdom for everyone other than special premium residents. The promulgated regulations shall set:
- Eligible property zones (residential and commercial units)
- Rights and restrictions applicable to ownership
- Permissible categories of real estate (say, freehold and leasehold)
- Any special considerations regarding ownership in Makkah and Madinah
The real estate regulator will oversee and watch the process to make sure that it accords with national interests. It will be consistent with city plans.
Who are expected to benefit?
The expected beneficiaries may be:
- Foreign nationals and long-term residents who work towards stability and investment opportunities
- Banks and mortgage lenders that are likely to see increased demand for home loans
- Construction and development firms which are likely to experience more activities on higher grounds
- Corporate investors who might go for owned property to lodge employees instead of leasing hotels or apartments
According to Junaid Ansari, head of investment strategy and research at Kamco Invest, this narrows down the gap between Saudi Arabia and other regional property markets. These have existed for a long time, such as Dubai and Abu Dhabi, where outright ownership is permitted.
Strategic Impact
This policy change is more than a real estate update-it reflects Saudi Arabia's broader openness to global integration. Enabling foreign ownership means the Kingdom is setting in place a pro-investment atmosphere. It also allows expatriates to forge economic and emotional ties with the country.
Such thinking sits well with the liberalizing efforts like:
- Flexible work permits
- Expansion of tourist visas
- Clarified regulatory perspective in domains like health services, fintech, and tech
Conclusion:
As Saudi Arabia sets out toward an open, investment-friendly era, foreign ownership of property will be a major change maker. It places the Kingdom as a modern economic hub in the Middle East.
Saudi Arabia Foreign Property Ownership: A Transformational Shift
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