In a landmark decision expected to transform Saudi Arabia’s real estate sector, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved a new system allowing non-Saudis to own property in the Kingdom.
The move triggered immediate optimism in the stock market, with real estate development shares surging over 6 percent the following day, according to news reports.
The new ownership system is part of broader legislative reforms aimed at attracting foreign direct investment, increasing real estate supply, and boosting mega-projects such as NEOM and the Red Sea Project.
The ownership will be limited to specific areas — primarily in Riyadh, Jeddah, and select large cities — with special provisions for Makkah and Madinah, where ownership is limited to Muslims and specific developments.
The Real Estate General Authority will define geographic zones open to foreign ownership, with implementation scheduled for January 2026. Regulations are expected to be published on the “Istitaa” platform within 180 days.
Executives and analysts emphasized that the new system protects citizens interests, supports national development goals, and encourages high-quality real estate investment.
A potential reduction in the current SAR 4 million property requirement for premium residency is also being discussed, which could open the market to a broader base of foreign buyers.
EFG Hermes and other investment analysts believe this reform signals a qualitative leap for the sector, which aligns with Saudi Arabia’s Vision 2030 targets to build over a million homes, 362,000 hotel rooms, and millions of square meters of commercial space.
