Saudi Arabia Opens Real Estate Market to Foreigners
The Cabinet of Ministers of Saudi Arabia has approved the executive regulation of the law on the right of foreigners to own real estate. This historic decision expands opportunities for foreign investors and tourists.
What Has Changed in Legislation
In June 2026, the Council of Ministers of Saudi Arabia, chaired by King Salman, approved the executive regulation of the law on property ownership for foreigners. This law came into effect in January 2026 after its publication in the official gazette in July 2025. Now foreigners — both individuals and companies — can own all types of real estate in Saudi Arabia, including residential, commercial, agricultural, and industrial properties.
What Types of Property Are Available to Foreigners
The law allows foreign companies operating in the Kingdom to acquire real estate for their activities — offices, factories, warehouses, and other production facilities. All transactions must be carried out with the approval of the competent authorities and in accordance with the conditions established by the regulation. This opens up new opportunities for business development and tourism infrastructure in the country, including the creation of additional accommodation options for travelers coming to Saudi Arabia.
Geographic Zones for Investment
The Cabinet of Ministers also identified specific geographic areas where foreigners can own real estate. These zones were selected considering the strategic interests of the country's development and attracting foreign investment to key regions. This selective approach allows the state to control the development process and ensure harmonious growth of the economy in various areas of Saudi Arabia.
Significance for the Tourism Industry
This decision is significant for the development of tourism in Saudi Arabia. Foreign investors will be able to create hotel complexes, tourist centers, and other infrastructure necessary to accommodate the growing number of visitors. The expansion of housing and service offerings will improve the quality of service for tourists and pilgrims who come to the kingdom to visit holy sites and participate in religious events.
Frequently Asked Questions
Which Foreigners Can Buy Real Estate in Saudi Arabia?
The law allows both foreign individuals and foreign companies to own real estate in Saudi Arabia. Companies must have an official license to operate in the Kingdom. All purchases are subject to approval by the competent authorities.
Is Permission Required for Foreigners to Purchase Real Estate?
Yes, all transactions for the acquisition of real estate by foreigners must be carried out with the approval of the competent authorities in accordance with the executive regulation. This is necessary to comply with established rules and protect the interests of the state.
What Types of Real Estate Can Foreigners Buy?
Foreigners can own residential, commercial, agricultural, and industrial properties. Companies can acquire real estate necessary for their activities, such as offices, factories, and warehouses, provided they have an official license.
