JAKARTA – The Kingdom of Saudi Arabia is preparing to launch a transformative property ownership policy that will allow international buyers to purchase real estate beginning January 2026, with specific regulations governing purchases in the sacred cities of Mecca and Medina.

Historic Policy Shift for Foreign Investment

According to a Bloomberg report released Friday, November 21, 2025, Saudi Arabia’s General Authority for Real Estate (REGA) has officially revised its property ownership legislation, opening doors for both domestic and international individuals and corporations to acquire real estate throughout the Kingdom.

This landmark policy revision represents a significant departure from previous restrictions and aligns with the nation’s broader economic transformation goals.

Designated Zones and Ownership Guidelines

While the new regulations expand property ownership opportunities, not all land and properties will be available for foreign purchase. Fahad bin Sulaiman, Executive Director for Non-Saudi Property Ownership at REGA, announced that specific zones designated for foreign ownership in major cities including Riyadh, Jeddah, Mecca, and Medina are currently under review.

These designated areas are described as “very extensive” and will encompass the Kingdom’s so-called mega-projects. The finalized zones and complete ownership regulations will be published “soon” alongside the comprehensive framework for the new property ownership rules.

Officials indicate that non-Saudi ownership within these designated areas will likely be capped between 70% and 90% to maintain balanced development.

Special Requirements for Holy City Purchases

For properties located in Islam’s two holiest cities—Mecca and Medina—unique restrictions will apply. Fahad confirmed that purchasers must be Muslim to acquire real estate in these sacred locations. However, he emphasized that foreign buyers will face minimal bureaucratic obstacles outside of this religious requirement.

“There are no major requirements. We don’t want to impose limitations,” Fahad stated during an interview at Cityscape Global in Riyadh on Wednesday. “When you compare the current law with the updated legislation, there’s a significant difference.”

Beyond the religious requirement for holy city purchases, the Kingdom aims to streamline the acquisition process, making it accessible and straightforward for qualified international investors.

Strategic Economic Diversification Initiative

REGA’s announcement provides crucial clarity on the land law modifications ahead of their official implementation. The regulations are currently in the finalization and approval stages, according to the authority.

The Saudi government approved this comprehensive overhaul of property ownership laws in July as a central component of its strategy to attract foreign investment and advance Vision 2030’s diversification agenda. The nation’s ambitious development blueprint seeks to reduce economic dependence on oil revenues while fostering growth across multiple sectors.

Addressing Real Estate Market Challenges

The property market has garnered particular attention throughout this year as real estate challenges have complicated efforts to attract international corporations, skilled professionals, and investment capital to Riyadh and other major Saudi cities. This policy reform directly addresses these obstacles by removing barriers to foreign participation in the real estate sector.

Broader Investment Liberalization

The property ownership reform is part of a wider liberalization effort. Regulatory authorities are also relaxing restrictions within capital markets, with expectations that majority foreign ownership of Saudi stocks will soon be permitted, further opening the Kingdom’s economy to international participation.

This multi-faceted approach to economic reform signals Saudi Arabia’s determination to position itself as a competitive destination for global investment while maintaining cultural and religious considerations, particularly regarding its most sacred sites.

Original Article:

Hidayatullah. (2025, November 24). Arab Saudi akan Izinkan Warga Asing Beli Properti, Makkah–Madinah Khusus Muslim. Retrieved from https://hidayatullah.com/berita/2025/11/22/302310/arab-saudi-akan-izinkan-warga-asing-beli-properti-makkah-madinah-khusus-muslim.html