New Saudi Arabia real estate law: Foreigners can own property from January 2026

 New Saudi Arabia real estate law: Foreigners can own property from January 2026


Real estate ownership will be allowed in defined zones, initially in Riyadh and Jeddah; purchases in Makkah and Madinah will be subject to tighter regulations


In a landmark decision on July 8, the Saudi Cabinet approved an updated system that will allow non-Saudis to own properties in the Kingdom from January 2026.


The new system is part of ongoing reforms aimed at boosting the real estate sector and attracting foreign direct investment. The announcement was made following a Cabinet session chaired by King Salman bin Abdulaziz Al Saud, with the Crown Prince also extending support for the decision.


The update is designed to increase real estate supply and encourage international developers and investors to enter the Saudi market. Foreign ownership will be permitted within defined geographic zones, particularly in Riyadh and Jeddah, subject to specific conditions in sensitive areas such as Makkah and Medinah.


Stay up to date with the latest news. Follow KT on WhatsApp Channels.


The Real Estate General Authority will define the geographical boundaries and publish the implementing regulations within 180 days on the Estithaa platform (official Umm Al-Qura Gazette). These regulations will outline the procedures, requirements, and safeguards for foreign ownership, ensuring alignment with economic and social goals.


Aligns with existing regulation


The new system will also align with the Premium Residency Programme (Iqama) and the regulation of real estate ownership by Gulf Cooperation Council (GCC) citizens, which permits cross-border property ownership for investment and residential purposes.


A residency system launched in 2019 allowed eligible foreigners to live, work and invest in Saudi Arabia without a local sponsor (kafeel), marking a major shift from the traditional sponsorship system.


Reduce dependency on oil


This move marks a major step in opening Saudi Arabia’s real estate market to global investors, reinforcing the Kingdom’s broader Vision 2030 objectives.


Saudi Vision 2030 is a strategic plan launched in 2016 by Crown Prince Mohammed bin Salman to diversify Saudi Arabia's economy, reduce its dependency on oil, and transform the Kingdom into a global investment powerhouse and dynamic society.


Target sector

Increase non-oil government revenue from SAR163 billion to SAR1 trillion

Raise tourism contribution to GDP from 3 per cent to 10 per cent

Attract 100 million tourists annually by 2030

Grow the Public Investment Fund (PIF) to over $2 trillion in assets

Localise military spending from 2 per cent to 50 per cent

Create jobs in non-oil sectors and reduce unemployment to 7 per cent

Increase women’s participation in the workforce to 30 per cent or more

Enhance digital infrastructure and make Saudi a tech hub


Projects under Vision 2030

Neom – A $500 billion futuristic mega-city on the Red Sea

The Line – A smart, car-free linear city within Neom

Red Sea Project – A luxury tourism destination with sustainable design

Qiddiya – A massive entertainment and sports city near Riyadh

Diriyah Gate – A cultural and historical development around the birthplace of Saudi Arabia



Comments

Post a Comment

Popular posts from this blog

Saudi Arabia raises white land tax to 10%, introduces annual levy on vacant properties

  May 01, 2025 The amendments unify the tax application stages, with the annual tax now covering individual or combined landholdings of 5,000 square meters or more within designated urban zones. Saudi Gazette report RIYADH —  Saudi Arabia has approved amendments to its White Land Tax Law, raising the annual levy on undeveloped land from 2.5% to 10% of its value and introducing, for the first time, an annual tax on long-vacant properties without justified use. The changes, passed during Tuesday’s Cabinet session, are aimed at boosting property development and increasing housing supply, as the government works to address rising real estate prices. The Ministry of Municipal and Rural Affairs and Housing announced plans to offer housing units across various regions in partnership with private developers, priced between SR250,000 and SR1.2 million. The initiative targets raising Saudi homeownership to 66% this year, according to Minister Majed Al-Hogail during a recent government p...
Read more

Commerce Ministry unveils updated digital commercial registration with QR code access

May 25, 2025 Commerce Ministry unveils updated digital commercial registration with QR code access Saudi Gazette report RIYADH — The Ministry of Commerce has introduced a redesigned digital commercial registration (CR) certificate for businesses in Saudi Arabia, featuring a more streamlined format and improved data accessibility. The updated CR now consists of a single-page electronic certificate containing all relevant business information. Users can instantly access detailed data by scanning a QR code displayed on the left side of the certificate. This update coincides with the implementation of the new Commercial Registry Law and its executive regulations. Among the key changes is the transition to a unified national CR per establishment, consolidating all activities under one license regardless of geographic location within the Kingdom. The revised system also eliminates the traditional expiration date for the CR. Instead, businesses are now required to electronically confirm their...
Read more

MHRSD: Minimum 10-day paid leave mandatory for employees performing Hajj for first time

 May 01, 2025 The Ministry of Human Resources and Social Development clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it. The Ministry of Human Resources and Social Development clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it. Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development emphasized that Hajj leave must not be less than 10 days and not more than 15 days, including Eid al-Adha holiday, for those employees performing the annual pilgrimage of Hajj for the first time. In a statement marking the beginning of the Hajj season, the ministry clarified that the Labor Law allows employees to avail of paid leave to perform Hajj once in their service period if they have not previously performed it, provided they have completed at least two consecutive...
Read more