The reforms in the financial markets are making it easier for foreigners to invest. Saudi Arabia has developed clear rules and legal protections. The mortgage options are also available now. This has offered new opportunities for individuals and companies to participate in the growing property market in Saudi Arabia.
The New Saudi Property Law 2026
The Law on Non-Saudis’ Ownership of Real Estate was approved by royal decree in 2025. It came into effect on January 21, 2026. This law has replaced the older norms. It is now giving foreigners clearer rules, broader eligibility, and stronger oversight.
Now under the new system, foreign individuals and companies can own, lease and also hold rights over their properties in designated zones. These zones which are expected to include major cities like Riyadh, Jeddah, and parts of the Eastern Province. The law has also introduced enforcement rules. The fines and potential forced sales for violations are also incorporated. This is ensuring transparency and compliance.
So if we take it overall, this reform is a major step toward making Saudi Arabia’s property market more accessible and attractive to international investors. And while this is also supporting long-term economic growth.
Who Can Buy Property in Saudi Arabia?
A variety of buyers can now enter the Saudi property market with this new law.
Foreign Individuals: The residents can own one personal residence outside the designated zones. And considering the non-residents they can buy only within some approved zones. This opens doors for those who have been looking to live and work here or simply invest in the Kingdom.
Companies & Institutions: Both of the listed and unlisted companies with foreign ownership can acquire property in designated zones. The listed companies may even own property nationwide. This includes Mecca and Medina, by properly following the Capital Market Authority rules. If we talk about the diplomatic missions and international organizations they can also own property for their official use. This will have to be approved by the Ministry of Foreign Affairs.
This structure ensures that property ownership is flexible but well-regulated. Furthermore, it is suitable for both personal and corporate investors.
Where Can Foreigners Buy? Designated Zones Explained
The new law has allowed foreigners to buy property in Saudi Arabia and yes only in the designated zones. This will be officially announced by the Council of Ministers. The exact areas are yet to be published. However, the areas that are expected to be included are Riyadh, Jeddah, and parts of the Eastern Province. So this basically covers the key residential, commercial, and industrial hubs as well.
If we consider buying or investing outside of these zones, the ownership there is still restricted. But there are a few exceptions though. The foreign residents may still own one personal home outside the designated zones. But the ones who are non-residents have to stick to the approved areas.
The types of property available include residential, commercial, industrial, and agricultural units. So buyers actually have a lot of options to choose from. Saudi Arabia has focused ownership in these specific zones to ensure that foreign investment is organized, transparent, and actually matches its urban planning and economic goals.
Designated Zones:
| City / Region | Property Types Allowed | Notes |
| Riyadh | Residential, Commercial, Industrial, Agricultural | Key economic hub, strong demand |
| Jeddah | Residential, Commercial | Coastal city, high investment interest |
| Eastern Province | Industrial, Commercial | Energy and industrial focus |
| Mecca & Medina | Limited ownership | Only Muslims, strict conditions |
Restrictions in Mecca & Medina
The ownership rules in Mecca and Medina are still strict under the new law. Only the Muslims are allowed to own property in these holy cities, and even then, the ownership is subject to some specific conditions.
Let’s consider the companies, ownership is generally prohibited unless the business is Saudi-incorporated with foreign shareholders and needs property for their operational purposes, like offices or employee housing.
These restrictions are basically there so that religious and cultural sensitivities are respected while allowing a limited foreign participation for just the operational needs.
The foreigners who are looking to invest or live in Saudi Arabia must plan their property purchases carefully. This is so that they can avoid these two cities unless they can actually meet the strict requirements.
Fees, Taxes, and Minimum Investment
Buying property in Saudi Arabia comes with certain fees and requirements for foreign buyers, obviously. All the property transactions are subject to a 5% real estate transfer tax. Now if we add some additional fees then it may raise the total cost to around 10% which totally depends on the transaction.
There are certain investments where a minimum threshold of SAR 30 million ($8 million) applies. This is to emphasize long-term and serious investment rather than just jumping on adrenaline.
All of the purchases must be registered in the national real estate registry so they can be legally valid. Moreover, the non-compliant transactions cannot be notarized. Violations can lead to fines up to SAR 10 million ($2.7 million) or, in serious cases it can lead to the forced sale of the property.
These rules are exactly there so that the market is secure and focused on sustainable growth.
Mortgage Options for Foreign Residents
The foreign residents in Saudi Arabia can now access mortgage financing as well according to the new law. However, the rates and conditions can vary between banks. The interest rates usually range from around 4.10% to 4.99%. But this depends on the bank and the type of loan term. The financial profile of the borrower also makes a difference.
There are some banks that require special conditions, like a residency permit for foreign investors, a minimum down payment of 30%, or a minimum monthly income of SR19,000–SR25,000. This is just for them to make sure that the borrowers can really manage the loan.
Below is a quick comparison of what some banks are offering:
| Bank Name | Interest Rate | Loan Term | Minimum Down Payment | Minimum Income Requirement | Notes |
| Saudi Fransi Bank | 4.10% | 15 yrs | 30% | SR19,000 | Competitive offer |
| Riyad Bank | 4.99% | 20 yrs | 30% | SR25,000 | Higher end |
| Bank Aljazira | 4.96% | 30 yrs | 30% | SR25,000 | Long-term loan |
| Al-Rajhi | 4.64% | 25 yrs | 30% | SR20,000 | Mid-range |
| NCB | 4.40% | 20 yrs | 30% | SR19,000 | Conservative offer |
These options provide the foreign residents with more flexibility when they are buying property. This also encourages banks to compete, which may lead to better offers over time.
Tips for Choosing the Right Bank and Mortgage
Basically, it is a really important step to choose the right bank and mortgage for foreign buyers in Saudi Arabia. The interest rates range from 4.10% to 4.99% and there are different requirements for residency, income, and down payment. So it’s important to compare offers carefully.
These are some tips:
- Check the Interest Rate: This is because even a small difference can save a lot over a long-term loan.
- Look at Loan Terms: There are some banks that offer 15–30 years. You can choose what easily fits your financial plan.
- Understand the Down Payment: Most of the banks require at least 30%, but some may vary.
- Income Requirements: It is important to make sure your monthly income meets the requirements of the bank so that you can qualify.
- Extra Conditions: There are some banks that also ask for special residency permits or they can also restrict loans for certain property types.
Quick Comparison Guide for Foreign Buyers:
| Factor | What to Consider | Why It Matters |
| Interest Rate | Compare % across banks | Affects monthly payments and total cost |
| Loan Term | 15–30 years | Longer terms = smaller monthly payments, higher total interest |
| Down Payment | Usually 30%+ | Determines initial investment and loan approval |
| Monthly Income | SR19,000–SR25,000 | Ensures you qualify for the loan |
| Residency Requirements | Special investor residency | Some banks require it for foreigners |
The foreign buyers can secure the most suitable mortgage by actively comparing banks and understanding all the types of requirements.
Corporate and Institutional Opportunities
The new law also opens the door for foreign companies. The investment funds and non-profit organizations can also acquire property in Saudi Arabia. These entities can buy property within designated zones to support their business activities. These activities include such as offices, industrial facilities, and employee housing.
The listed companies with foreign ownership have even more flexibility. They can purchase property nationwide, including in Mecca and Medina also by following Capital Market Authority (CMA) rules. If we are talking about the unlisted companies with foreign shareholders they can buy property only within the approved zones. Furthermore, they can buy outside the zones in certain cases only if it is needed for operations.
The Diplomatic missions and international organizations can also own property for official use. They will have to take approval from the Ministry of Foreign Affairs.
These provisions are there to ensure that both personal and corporate investors can participate in the market while the nation maintains its structured and regulated growth.
Why Saudi Arabia Is Opening Up Now (Vision 2030 Context)
The move of Saudi Arabia to open property and financial markets to foreigners in 2026 is a key part of Vision 2030. This vision is the plan of the Kingdom to grow its economy and reduce its overall dependence on oil. So by welcoming international investors, the government is aiming to attract and support economic growth and create jobs.
The reforms also make Saudi Arabia more competitive with other Gulf markets. These are providing legal clarity, financing options, and clear rules for foreign buyers. The Giga-projects like NEOM, Diriyah, and the Red Sea developments benefit from this investment. This is to basically ensure that global capital continues to contribute to the ambitious development plans of the Kingdom.
Therefore, opening the market now signals that Saudi Arabia is ready for global participation. It is encouraging both individuals and corporations to explore new opportunities in their property and finance.
Impact on the Saudi Property Market
The opening of the property market of Saudi Arabia to the foreign buyers is going to actually change the real estate landscape. The demand is strong, and it is especially in Riyadh. This area is where Grade A office rents rose 15% year-on-year in 2025. And the occupancy rates reached nearly 98%. The residential transactions also grew 18% quarter-on-quarter, now reaching SAR 7.7 billion in value.
The development pipeline of Saudi Arabia is really massive. They have around $440 billion in committed projects and $1.55 trillion in long-term plans. This also includes the mega-projects like NEOM, Diriyah, and the Red Sea developments. So these projects are looking forward to attracting both foreign investors and domestic buyers.
Key Market Trends:
| Metric | 2025 Value | Change YoY | Notes |
| Grade A Office Rents (Riyadh) | SAR per sq.m | +15% | High demand |
| Office Occupancy (Riyadh) | 98% | +2% | Nearly full |
| Residential Transactions | SAR 7.7B | +18% QOQ | Rising demand |
| Committed Development Projects | $440B |
| Pipeline value |
| Long-Term Development Pipeline | $1.55T |
| Mega-projects planned |
Future Outlook: Saudi Arabia Real Estate in 5 Years
So now that the new property law and foreign ownership have opened in 2026, the real estate market of Saudi Arabia is prepared to grow steadily over the next five years. The demand from foreign investors, combined with domestic interest and mega-projects like NEOM, Diriyah, and the Red Sea developments, all of this will continue to drive activity.
Key trends to watch:
- Increased foreign investment: More buyers from Europe, Asia, and the Gulf region are likely going to enter the market.
- Rising property values: The limited supply in high-demand areas like Riyadh and Jeddah may push prices up moderately.
- Expansion of mortgage programs: The banks are looking forward to competing more aggressively. This is why they are offering better rates and terms for foreign residents.
- Urban development alignment: The designated zones and planned projects will make sure that the growth is organized and sustainable.
Projected Market Growth:
| Year | Expected Residential Transactions (SAR B) | Grade A Office Rents Change YoY | Notes |
| 2026 | 9.1 | +10% | First year of foreign ownership |
| 2027 | 10.3 | +8% | Increased investor activity |
| 2028 | 11.5 | +7% | Mega-project influence grows |
| 2029 | 12.8 | +6% | Mature market trends |
| 2030 | 14.0 | +5% | +5% |
This outlook shows that Saudi Arabia’s property market is set for steady expansion. The Kingdom is offering long-term opportunities for foreign buyers while also remaining carefully regulated to ensure their sustainable growth.
Final Thoughts
The 2026 property reforms of Saudi Arabia have opened the door for foreign buyers. The Kingdom is now offering clear rules with designated zones where the foreigners can buy property and there are mortgage options as well. Moreover, with strong market momentum and mega-projects like NEOM and Diriyah, the Kingdom now provides safe and growth-oriented opportunities that are structured transparently.
Although there are restrictions that still remain in holy cities, but the overall market is now more accessible and investment-friendly. Therefore, 2026 is definitely a historic year for foreign investors.
