Saudi Arabia's Cabinet approved updated regulations allowing non-Saudis to own property in designated areas, with the new system set to take effect in January 2026, Saudi Gazette and state news agency SPA reported on July 8.

The Kingdom is aiming to attract long-term resident expats into its commercial cities as it seeks to turn its economy away from the traditional oil and gas industries. 

Housing Minister Majed Al Hugail said the updated foreign property ownership system aims to develop the real estate sector and encourage foreign direct investment, which will contribute to increasing property supply by attracting investors and real estate development companies to the Saudi market.

The minister confirmed the updated system protects Saudi citizens' interests through mechanisms ensuring market control and compliance with procedures seeking to achieve real estate balance. The system allows ownership in specific geographical areas, particularly in Riyadh and Jeddah, with special conditions for ownership in Mecca and Medina.

Under the updated regulations, the General Real Estate Authority will propose geographical areas where non-Saudis may own property or acquire other real rights. The authority will publish implementing regulations on the Istitleh platform within 180 days of official publication.

The implementing regulations will determine procedures for non-Saudis to acquire real property rights, requirements for enforcing system provisions on non-Saudis, and application details considering all economic and social aspects.

Al Hugail said the system aligns with the Premium Residency System regulations and arrangements for GCC citizens to own property in member states for residential and investment purposes, or other existing systems granting non-Saudis privileges to own property and acquire other real rights.

The updated property ownership law represents an extension of real estate legislation aimed at encouraging foreign direct investment and developing Saudi Arabia's property sector as part of Vision 2030 economic diversification goals.

The new regulations will enable qualified foreign investors and residents to purchase property in designated zones whilst maintaining protections for Saudi citizens and ensuring balanced market development.