🏡 Foreign Property Ownership in Saudi Arabia: 7 Major Changes That Reshape the Market in 2025
If you’re a non-Saudi resident or investor, this is news you need to know:
In July 2025, the Saudi Council of Ministers approved a new law regulating foreign ownership of real estate, set to take effect in January 2026.
The law includes 15 articles, with its executive regulations to be issued within 180 days of publication in the official gazette (Umm Al-Qura).
Its aim? To organize ownership by non-Saudis, encourage foreign investment, and align with the ambitions of Saudi Vision 2030.
In this article, we’ll break down the 7 key changes in the updated law, and explain who can now own property, where, and under what conditions.
📌 What Is the New Foreign Ownership Law?
The new system defines the legal framework for how non-Saudis—whether individuals, companies, or non-profit entities—can own various types of property across the Kingdom.
It replaces the older regulation issued in 2000 and brings more clarity, flexibility, and transparency, especially in high-demand cities and strategic zones.
🔄 Key Differences Between the Old and New Regulations
✅ Who Can Own Property?
| Old Law | New Law |
|---|---|
| – Non-Saudi individuals and investors residing in the Kingdom. – Official foreign diplomatic missions. | – Non-Saudi individuals (residents and non-residents). – Foreign companies. – Non-profit foreign entities. – Diplomatic missions. – Saudi companies with foreign shareholders. |
💡 Curious how the old law used to work? Check out this detailed article:
Foreign Real Estate Ownership in Saudi Arabia: Key Conditions
🏘️ Property Types Allowed
| Old Law | New Law |
|---|---|
| – Properties necessary for business operation or employee housing. – One residential unit for personal use by residents. | – Ownership allowed for all types of real estate: residential, commercial, industrial, and land plots. |
🌍 Geographic Restrictions
| Old Law | New Law |
|---|---|
| – Ownership allowed in all regions except Makkah and Madinah. | – Ownership permitted in areas designated by an official Geographic Zones Document issued by the Real Estate Authority. |
🕋 Makkah and Madinah Access
| Old Law | New Law |
|---|---|
| – Ownership prohibited; usufruct rights allowed only. | – Muslim foreigners and Saudi companies with foreign partners can own property in specific zones defined by the authority. |
The new law also allows GCC citizens to own property in Makkah, under certain conditions and geographic limitations.
🗂️ Ownership Matrix by Category and Region
| Category | Makkah & Madinah | Other Regions |
|---|---|---|
| Residents | Allowed | Allowed |
| Non-Residents | Allowed (Muslims only) | One residential unit |
| Premium Residency Holders | Allowed | Allowed |
| Saudi Companies with Foreign Stakeholders | Permitted under CMA guidelines | Allowed for employee housing |
| Foreign Licensed Companies | Allowed | Not Allowed |
🌆 Where Are the Top Real Estate Opportunities?
With the new law in place, demand is rising in major cities across the Kingdom. Using the Aqar App, you can explore thousands of properties in just a few taps.
Start browsing by city:
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🤝 Why These Changes Matter
- Encourage foreign direct investment in housing, tourism, and commercial development.
- Provide a transparent legal structure for ownership rights.
- Align the real estate sector with Vision 2030 growth targets.
- Unlock opportunities in high-demand zones such as NEOM, Riyadh, and the Red Sea Project.
❓ Frequently Asked Questions (FAQs)
1. Who can own property under the new law?
Ownership is now open to: non-Saudi individuals (residents and non-residents), foreign companies, non-profit organizations, diplomatic missions, Saudi companies with foreign stakeholders, and entities partially or fully owned by foreigners.
2. What counts as a foreign company?
Any company established under Saudi law with its main headquarters outside the Kingdom. This applies even if it has no physical office in Saudi Arabia.
3. What types of properties are included?
The new law covers all property types, including residential apartments, villas, commercial offices, land, and industrial properties—subject to geographic zone regulations.
4. What forms of ownership are allowed?
- Full ownership rights
- Or other real rights, such as usufruct, easement, or use rights.
5. Can GCC nationals own property in Makkah?
Yes, GCC citizens may own property in designated zones of Makkah, especially when ownership is through a Saudi company with Gulf partners.
🏁 Conclusion
With this major legal shift, foreign ownership of real estate in Saudi Arabia is entering a new era. The updated law provides clear rules, expanded eligibility, and access to previously restricted zones—all in support of Vision 2030.
Whether you’re a non-resident individual, international investor, or a Saudi company with foreign partners, this new system offers exciting opportunities in a highly promising market.
📚 For more detailed guides and legal updates, visit the Aqar Blog.
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