On 8 July 2025, the Council of Ministers approved the Law of Real Estate Ownership and Investment by Non-Saudis (Royal Decree M/14). It took effect on 21 January 2026, after a 180-day transitional period during which the Real Estate General Authority (REGA) issued implementing regulations. It replaces the restrictive 2000 framework with a geography-based system.
For the first time in the Kingdom's modern regulatory history, non-Saudi individuals and companies can own residential and commercial property in designated zones. The headline is historic. The detail is where the market actually lives.
Where you can, and cannot, buy
Ownership is zone-based, not nationwide. Makkah and Madinah remain restricted, with narrow exceptions for Muslim foreigners through inheritance or waqf. Per the Ministry of Municipalities and Housing, foreign residents may own one residential unit, while non-residents may own only in approved areas. Raw land for development carries a SAR 30 million minimum and a five-year completion requirement.
Every transfer must be digitally registered in the National Real Estate Registry. False information draws fines up to SAR 10 million and possible forced sale. Property tax for foreigners was cut from 10% to 5%.
The cost of entry
A transaction fee of up to 5% applies. The Real Estate Owner Premium Residency, the so-called Saudi Green Card route, requires SAR 4 million (around USD 1.07 million) in mortgage-free, TAQEEM-appraised residential property. SAMA cut its repo rate to 4.25% in December 2025, and foreign mortgage loan-to-value runs 70 to 85% at rates of 4 to 8%.
Why 2027 is the real test
The law is live, but the market that follows it is not instant. REGA is releasing designated-zone boundaries in phases through 2026. Most analysts expect meaningful international transaction volume to appear in 2027, once zones are confirmed, the roughly 10% combined cost structure is normalized, and advisory infrastructure is in place.
The law removes the barrier. Confirmed zone maps, normalized costs, and credible advisory coverage decide whether capital actually moves.
There is a second-order effect worth watching. The same reform agenda targets 411 million square meters of idle land through a tiered White Land Tax, and PIF-backed developers are racing to close a Riyadh housing gap estimated near 305,000 units through 2034. Foreign demand lands on top of an already strained domestic pipeline.