Can Foreigners Buy Property in Saudi Arabia? 2026 Laws & Rules

Yes, foreigners can buy property in Saudi Arabia. The new Law of Real Estate Ownership by Non-Saudis came into force on 22 January 2026 and applies to foreign residents, non-resident individuals, foreign companies and other eligible foreign entities. Applications are processed through the official Saudi Properties platform.

Foreign ownership is not unrestricted. Eligibility depends on the buyer category, property location and type of real estate right. Designated geographical areas may carry different foreign ownership percentages, permitted rights, maximum usufruct periods and additional conditions.

Saudi Arabia recorded 53,600 real estate sales transactions worth SAR 72.2 billion in Q2 2026, with residential land the most active property type.

Who Can Buy Property in Saudi Arabia in 2026?

The law covers

• Foreign individuals
• Non-Saudi companies
• Non-Saudi non-profit entities
• Other foreign legal persons approved under the framework.

Can Foreign Residents Buy Property in Saudi Arabia?

Yes. A legally resident non-Saudi can acquire permitted property rights within approved geographical areas.

More importantly, Article 2 also allows a legally resident foreign individual to own one property for personal residence outside those designated areas, except in Makkah and Madinah.

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Can Non-Residents Buy Property in Saudi Arabia?

Yes. An Iqama is not required for the non-resident route.

Before purchasing, a non-resident foreign individual must:

1. Obtain a Saudi digital identity
2. Open a Saudi bank account in their own name
3. Obtain a Saudi mobile number linked to that digital identity

Foreign companies without a Saudi presence must first register with the Ministry of Investment before proceeding with the ownership process.

Where Can Foreigners Buy Property in Saudi Arabia?

Saudi Arabia does not apply one nationwide foreign-ownership rule.

For each designated geographical area, the authorities can determine:

• Permitted real estate rights
• Maximum foreign ownership percentages
• Maximum usufruct periods
• Additional ownership conditions

Therefore, permission to buy somewhere in Riyadh or Jeddah does NOT mean every district or property in that city is automatically eligible.

Can Foreigners Buy Property in Riyadh and Jeddah?

Yes, subject to the applicable geographical and property-right controls.

Riyadh recorded approximately 13,600 transactions worth SAR 29.1 billion through the period displayed for Q2 2026. Ar Rimal was the most active district, while a transaction in Western Umm Al Hamam reached SAR 799 million.

Rather than comparing cities only by transaction volume, foreign investors can use Bayut-KSA’s ROI tools to assess opportunities by city, district, investment amount and holding period, with estimates for total ROI, capital gain and rental return.

Can Foreigners Buy Property in Makkah and Madinah?

Yes, but Article 2 imposes a major restriction: for individual foreign buyers, ownership and other real estate rights in Makkah and Madinah are limited to Muslim natural persons.

Separate provisions apply to certain Saudi companies with foreign ownership, listed companies, licensed investment funds and special-purpose entities.

How to Buy Property in Saudi Arabia as a Foreigner

The practical process is:

1. Confirm your buyer category
2. Check the geographical area and permitted property right
3. Compare eligible projects and investment locations
4. Assess rental return, capital gain and total ROI
5. Verify title, developer, project approvals and liabilities
6. Complete the Saudi Properties application
7. Register the property right

The final step matters legally. Article 8 states that foreign ownership or another real estate right becomes valid upon registration with the Real Estate Registry.

What Fees Apply to Foreign Property Owners?

• Article 9 permits a fee on a non-Saudi’s disposal of a real estate right, subject to a statutory ceiling of 5% of the value of the disposal. The implementing regulations determine the actual rate according to factors including location and type of right.
• This should not be confused with penalties. A breach of the ownership law can result in a fine of up to 5% of the value of the affected real estate right, capped at SAR 10 million, and the right may also be ordered sold.

Does Buying Property Give You Saudi Premium Residency?

Not automatically. Foreign property ownership and Real Estate Owner Residency are separate legal frameworks. A property may be available to foreign buyers without satisfying the separate Premium Residency requirements.

If residency is part of your objective, read Bayut-KSA’s Saudi Premium Residency Through Property Investment guide before choosing the property.

Start Your Saudi Property Investment Journey

Saudi Arabia’s 2026 framework has made foreign property ownership considerably clearer. The question is no longer simply whether foreigners can buy, but where to invest, what to buy, and what return the property could generate.