Real estate

Buying property in Saudi Arabia

What the 2026 property law means for foreign buyers, city by city, including the separate rules for Makkah and Madinah.

Updated · by Shayan Khan

Property by region

Where foreigners
can buy.

Since January 2026 foreigners have been able to own property broadly in Saudi Arabia for the first time, but only within designated zones and with different rules per city. The holy cities are a separate and often misunderstood chapter.

Uitzicht op de Kaaba in Mekka door een sierlijke boog

Makkah and Madinah: the nuance most parties leave out

Since the implementing regulations of 23 June 2026, Muslims, including those living outside Saudi Arabia, and Saudi companies with foreign ownership can acquire property in specifically designated zones within the holy cities. Non-Muslims remain fully excluded, and it never applies to the entire city. Anyone seeing an advert promising "freehold in Makkah for everyone" should stay critical: the exact conditions differ per zone and are still being worked out.

Muslims only · designated zones only
Clock tower and Masjid al-Haram in Makkah
Makkah
مكة المكرمة
Restricted

Ownership reserved for Muslims and Saudi companies, exclusively within designated zones near the holy sites. Enormous demand driven by the growing number of Umrah pilgrims.

Muslims only, resident or abroad
Possible via a Saudi corporate structure
Apply via the Saudi Properties portal
Al-Masjid an-Nabawi in Madinah
Madinah
المدينة المنورة
Restricted

Same framework as Makkah. Ownership possible for Muslims within specific zones. Development around the Prophet's Mosque makes this a sought-after but tightly regulated market.

Muslims only, resident or abroad
Designated zones, not the whole city
Conditions differ per area
Riyadh skyline at night
Riyadh
الرياض
Open in zones

The capital and economic heart. Foreigners can own within zones designated by the Council of Ministers. Strong demand driven by giga-projects and Expo 2030.

Residential and commercial
Within designated zones only
Incl. Diriyah Gate, New Murabba, Qiddiya, KAFD
Al-Rahma mosque on the Red Sea in Jeddah
Jeddah
جدة
Open in zones

The gateway on the Red Sea and a commercial hub. Foreign ownership permitted within designated areas. Tourism and logistics development is driving the market.

Residential and commercial
Within designated zones only
Zones published by REGA
Arabian Gulf coast near Dammam
Dammam
الدمام
Open in zones

The centre of the Eastern Province and the oil industry. Attractive for industrial and business investors, with ownership possible within designated zones.

Strong for industry and logistics
Close to Bahrain and Gulf markets
Designated zones apply
Khobar water tower
Khobar
الخبر
Open in zones

Modern, prosperous and coastal, part of the Dammam metropolitan area. Popular with expats and investors for its quality of life and proximity to business centres.

Sought-after residential segment
Strong expat community
Designated zones apply
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FAQ

Questions about real estate

Yes. Since the new law took effect on 22 January 2026, foreigners can own property within designated zones. The rules differ per city, with separate frameworks for Riyadh, Jeddah and the holy cities.
Since the implementing regulations of 23 June 2026, Muslims, including those living outside Saudi Arabia, and Saudi companies with foreign ownership can acquire property in specifically designated zones in Makkah and Madinah. Non-Muslims are excluded and it never applies to the whole city.
Yes, via the Real Estate Owner Residency, a category of the Saudi Premium Residency. You need residential property worth at least SAR 4 million (around 1 million euro), fully developed and mortgage-free, independently valued via Taqeem.
Expect around 7% in government costs. On top of the regular 5% transfer tax (RETT), the separate fee for non-Saudis has been set at 2% for Riyadh, Jeddah, Makkah and Madinah under the implementing regulations. A non-resident buyer first needs an approved digital identity, a Saudi bank account in their own name and a linked Saudi mobile number. All transactions run through the official REGA platform Saudi Properties.

All frequently asked questions

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