Saudi Arabia's Updated Real Estate Regulations for Non-Saudis: A New Era of Investment Opportunities
Saudi Arabia's New Real Estate Regulations for Non-Saudis
In a pivotal moment for the Saudi real estate market, His Excellency Mr. Majed bin Abdullah Al-Hogail, the Minister of Municipalities and Housing and Chairman of the Real Estate General Authority (REGA), expressed his sincere gratitude to King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman for endorsing an updated regulation that allows non-Saudis to own property in the Kingdom. This change, ratified during a Ministerial Council meeting on July 8, 2025, is part of broader reforms aiming to enhance the real estate sector and attract foreign direct investments into the country.
The new regulation marks a significant step towards increasing the availability of properties for investors and real estate developers, further enhancing efforts to create a balanced real estate ecosystem in Saudi Arabia. This initiative aligns with the Kingdom's Vision 2030 strategy, which seeks to diversify the economy and reduce reliance on oil revenues.
The updated guidelines introduce specific provisions allowing property ownership under certain conditions in pivotal cities such as Makkah and Madinah, thus catering to the needs of both local and international investors. The regulation is designed to be inclusive, enabling both natural and legal persons, including foreign residents and non-residents, to acquire properties in Saudi Arabia. However, this comes with a clear emphasis on adhering to defined regulations and conditions to ensure compliance and safeguard the investment environment.
Furthermore, the REGA will play a crucial role in proposing geographical areas where non-Saudis can own properties or acquire other real rights. The implementation details will be clarified in the regulatory framework set to be published within 180 days following the regulation’s official announcement. This framework will include procedures for non-Saudis to acquire property rights and ensure transparency regarding the enforcement of these regulations. It will also address all relevant details necessary for successful implementation, taking into consideration the economic and social dimensions of such policies.
An essential aspect of these reforms is their alignment with the existing Premium Residency Law which governs how foreign nationals can engage with the real estate sector. Furthermore, they harmonize with the regulations regarding property ownership for citizens of Gulf Cooperation Council (GCC) states, thus creating a seamless approach for investment in the Saudi real estate landscape.
Looking to the future, these updated regulations are expected to come into effect in January 2026. Analysts project that this liberalization will not only bolster investment in the real estate sector but will also stimulate economic growth by generating employment opportunities within the construction and tourism arenas as more projects are initiated.
In conclusion, Saudi Arabia's new regulations on real estate ownership for non-Saudis signify a progressive shift towards attracting foreign investment. Al-Hogail’s acknowledgment of this legislative change reflects the leadership's commitment to fostering a vibrant and diverse economy. As the Kingdom continues to evolve in line with Vision 2030, the real estate sector stands poised as a key player in promoting sustainable growth and prosperity for all stakeholders involved.