An IMGW News Report
Beginning January 2026, Saudi Arabia will permit non‑Saudis to acquire real estate in designated zones – chiefly Riyadh and Jeddah, with more regulated access in Mecca and Medina – under a landmark law unveiled by the Saudi Cabinet on 8 July 2025 . The measure is a linchpin of broader efforts to bolster foreign direct investment (FDI) and to diversify the kingdom away from oil revenues, as set out in Vision 2030 .
Majed Al Hogail, minister for municipalities and housing and chairman of the Real Estate General Authority, praised the reform as “an extension of the Kingdom’s comprehensive real‑estate reform agenda,” emphasising controls to safeguard Saudi interests through zonal restrictions and procedural oversight . Within 180 days of publication, the Authority will issue executive regulations detailing eligible zones, foreign‑buyer criteria and compliance mechanisms, via the “Istitlaa” public‑consultation platform.
The timing is astute. Real‑estate’s share of GDP has almost doubled – from 5.9 percent in 2023 to roughly 12 percent in 2024 – reflecting a flurry of legislative reform, pronounced housing demand and surging domestic activity . Last year alone, Saudi authorities issued 192 new project licences and some 3,800 construction permits, a 59 percent jump in the final quarter . Meanwhile, over 130 foreign real‑estate licences were granted in 2024, evidence of growing international interest.
The measure is a linchpin of broader efforts to bolster foreign direct investment (FDI) and to diversify the kingdom away from oil revenues
Capital markets have responded too. Shares in property‑focused companies such as the Retal Urban Development Co. and Saudi Real Estate Co. rose over 5 percent following the announcement, helping to lift the Tadawul’s real‑estate index to its highest level since May . Moreover, earlier this year Riyadh allowed foreign investment – up to 49 percent – in listed firms holding real‑estate in Mecca and Medina, another incremental opening .
For expatriate investors and developers, this law signals a rare entry point to one of the Middle East’s most dynamic urban markets. Institutional capital is likely to follow, drawn by rising prices, rental yields and demographic trends, particularly in Riyadh. The reform aligns with premium residency and regional‑headquarter incentives, offering a more flexible gateway into the Saudi economy .
Yet the devil lies in the forthcoming details. The success of the reform hinges on the clarity of executive regulations, the nomination of zones and the balance struck between foreign appetite and domestic sensitivities. Should the authorities get the tone right, Saudi’s housing market could emerge not merely as a beneficiary of Vision 2030, but as one of its most telling success stories.
