#Saudi Arabia #Riyadh #Real Estate #Al-Hogail

Saudi Arabia's New Real Estate Regulation for Foreign Ownership

In a significant advancement for the real estate sector, the Saudi Arabian Council of Ministers has recently approved an updated regulation concerning the ownership of real estate by non-Saudi individuals and entities. 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 gratitude to King Salman bin Abdulaziz and the Crown Prince for their leadership in endorsing this initiative on July 8, 2025.

This updated regulation is deemed a crucial part of ongoing legislative reforms targeted at revitalizing the real estate market and fostering foreign direct investment. By appealing to international investors and real estate developers, Saudi Arabia aims to balance its real estate ecosystem while significantly increasing property supply in the country.

Key Features of the Regulation

The regulation introduces specific conditions under which both individuals and legal entities—customers with legal residency and non-residents—can own property in Saudi Arabia. Notably, it allows for real estate ownership under particular conditions within the holy cities of Makkah and Madinah, reflecting the measures taken to respect religious significance while promoting investment.

The Real Estate General Authority (REGA) is tasked with defining geographical areas suitable for non-Saudis to acquire real estate. This system is scheduled to implemented in January 2026, providing a clear timeframe for interested parties. REGA is also required to disseminate the executive regulations through the Public Consultation Platform (Istitlaa) within 180 days from the regulation's official publication. This information will clarify the procedures for non-Saudis, detailing necessary requirements and stipulating the economic and social considerations needed for effective regulation enforcement.

Furthermore, the updated regulation aligns with the Saudi Premium Residency Law and the conditions governing real estate ownership by citizens from Gulf Cooperation Council (GCC) member states. This cross-reference indicates a carefully crafted approach that encourages co-investment opportunities while adhering to the stipulations of existing laws.

Future Implications

By allowing non-Saudis to own real estate under structured conditions, the Saudi government anticipates a surge in foreign interest, which could lead to increased investment and enhancement of real estate services. The regulation could not only aid in diversifying the economy but also transition Saudi Arabia towards its ambitious Vision 2030 goals.

In conclusion, the updated regulation for real estate ownership by non-Saudis reflects a strategic decision aimed at invigorating the sector and drawing in global investors. As the laws evolve, the Kingdom continues to show its commitment to an open and thriving real estate market, poised for future growth and development.