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New ownership law to boost FDI, support housing supply, and maintain market stability through zoning controls
July 09, 2025 | Staff Reporter | KSA | Property Management
Majid Al-Hogail, Saudi Arabia’s Minister of Municipal, Rural Affairs and Housing and Chairman of the Real Estate General Authority (REGA), has announced that a new law regulating non-Saudi property ownership will take effect in January 2026. The measure is part of the Kingdom’s broader push to attract foreign direct investment (FDI) and stimulate real estate development under its Vision 2030 strategy.
The law will permit non-Saudi individuals and entities to own property in designated geographic zones, including economic hubs like Riyadh and Jeddah. However, property acquisition in Makkah and Madinah will be governed by special conditions in line with their religious and cultural significance.
Al-Hogail emphasized that the law is designed to “safeguard citizen interests” by implementing mechanisms that ensure market balance while expanding housing supply. These regulatory tools aim to protect Saudi nationals from potential speculative pressures and to maintain affordability in urban centres.
The Real Estate General Authority will oversee the rollout of the law, including defining eligible zones and preparing executive regulations. These draft rules will be published for public consultation via the Istitlaa platform within 180 days, allowing stakeholders to provide feedback ahead of formal implementation.
The upcoming legislation aligns with Saudi Arabia’s Premium Residency initiative, which allows qualified foreign nationals to live, work, and invest in the Kingdom without a sponsor. It also extends rights already granted to GCC nationals, who may own property for residential or investment use.
This development comes at a time of major real estate transformation in the Kingdom, with giga-projects such as NEOM and The Line attracting international attention. The move to open ownership to non-Saudis reflects growing confidence in the Kingdom’s property sector and its readiness to welcome global participation.
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