Saudi Arabia to open real estate market, including holy cities of Makkah and Madinah, to foreigners in 2026
STC NEWS MONITORING DESK
RIYADH, NOVEMBER 22 (STC): In a significant move, the Kingdom of Saudi Arabia (KSA) is reportedly close to release regulations that will allow foreign nationals to buy property across the Kingdom from January 2026. Remarkably, the holy cities of Makkah and Madinah have been included in the locations where foreign nationals, but Muslims only, can own immovable properties, reports various news agencies.
According to the reports, the reform aims to attract greater international investment into the real estate market.
Earlier, foreign nationals faced strict barriers to owning property in Saudi Arabia, but that is changing under a new law approved by Royal Decree No. M/14 in July 2025, which lays the groundwork for foreign ownership within designated zones.
Bloomberg reported, citing Fahd bin Sulaiman from the General Real Estate Authority (REGA), that officials are reviewing which areas in Riyadh, Jeddah, Makkah and Madinah will be made accessible to foreign buyers. The approved zones will be published once the rules are formally issued.
Foreign ownership within the approved areas is expected to be capped between 70 and 90 per cent, a measure intended to encourage participation while safeguarding domestic interests. The limits will differ based on urban planning needs and local market conditions, said a report.
Opening parts of Makkah and Madinah to foreign ownership would mark a notable shift for Saudi Arabia, where access to property in both cities has historically been heavily restricted.
Alongside these changes, Saudi Arabia is also preparing to introduce fractional property ownership, enabling foreign investors to purchase tokenised stakes in real estate without physically visiting the Kingdom.
Speaking at Cityscape Global in Riyadh, held from 17 to 20 November, Real Estate Registry Authority CEO Mohammad Al-Suliman told Arabian Gulf Business Insight (AGBI) that the system would allow investors to “take advantage” of the Kingdom’s strong economic performance by participating in the real estate market remotely
The upcoming regulations form part of wider efforts to modernise the sector, diversify the economy and draw international capital under the Vision 2030 programme.
Meanwhile, the details outlining eligibility requirements, purchase procedures and compliance obligations are expected to be released soon.
(Straight Talk Communications I Inputs from News Agencies)
