Saudi Arabia is implementing a new, modern real estate ownership framework that significantly changes how foreign nationals and non-Saudi entities can own property within the Kingdom. The new system — set to take effect in January 2026 — introduces the concept of approved geographic zones where ownership rights will be clearly defined and regulated.
What Are “Approved Geographic Zones”?
Under the updated real estate law, non-Saudi individuals and companies will be allowed to own and acquire real estate or other property rights only in specific geographical areas that are approved and designated by the Saudi government. These areas will be defined based on recommendations from the Real Estate General Authority (REGA) and approved by the Council of Ministers.
The purpose of these zones is to balance foreign investment with national development priorities, ensuring orderly growth in the real estate sector while maintaining regulatory oversight.
Expected Geographic Areas
Although the full list of designated zones has not yet been officially published at the time of writing, authorities have already indicated that major urban centers — including Riyadh and Jeddah — are expected to be among the first approved zones for foreign ownership.
Special regulatory measures will also govern ownership in the holy cities of Makkah and Madinah. These cities will have additional restrictions: ownership will likely be limited to Saudi companies and Muslim individuals, reflecting longstanding protective measures for sacred sites.
Implementation Timeline
The new law was published in the Official Gazette (Umm Al-Qura) in mid-2025 and will enter into force 180 days later, meaning implementation began in January 2026.
Following the law’s enactment:
- The Real Estate General Authority (REGA) will publish detailed maps and descriptions of the approved geographic zones.
- Executive regulations and ownership procedures will be released on official platforms such as Istitlaa for public feedback within 180 days of publication.
Who Can Own Property in These Zones?
Under the new framework:
- Non-Saudi individuals (both residents and non-residents) may acquire real estate in the approved geographic zones, subject to conditions and limits.
Foreign corporations, investment funds, and special-purpose entities may also own property, with specific regulations governing investment activities and ownership rights.
Restrictions remain for sensitive areas, with additional conditions for Makkah and Madinah.
Strategic Goals and Economic Impact
This geographic zone-based ownership model is part of Saudi Arabia’s broader Vision 2030 strategy to attract foreign investment, boost real estate supply, and stimulate economic growth. By defining clear ownership zones and legal controls, the Kingdom aims to offer a transparent and structured real estate market that appeals to global investors while protecting national interests.
What’s Next?
🔹 Official Geographic Zone Document — Expected soon. This document will outline:
Approved zones with maps and boundaries
Types of property rights allowed
Conditions and limits on ownership
Procedures for foreign buyers and investors
🔹 Executive Regulations — To be published for public consultation and finalize implementation details.
As these regulations are released, they will shape the future of foreign property ownership in Saudi Arabia and open new opportunities for international buyers and investors interested in the Kingdom’s real estate market.
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