Saudi Cabinet Approves Foreign Property Ownership Zones in Riyadh, Jeddah, and the Cities of Makkah and Madinah

The Saudi Cabinet, chaired by King Salman bin Abdulaziz, has approved geographic areas where foreigners may acquire real estate. The decision—published through the Real Estate General Authority—effectively puts into practice the non-resident property ownership law that took effect in January, but until now had lacked clearly defined boundaries.

Trade Minister Majid Al-Qasabi described the new rules as a “strong incentive” for companies that will be able to expand their businesses and improve competitiveness.

Investment Minister Fahd bin Abdullah Al-Saif emphasized that zoning creates regulatory clarity: it sets the ownership limits, the scope of rights and obligations, and the intended use cases for properties. In his view, this framework gives foreign companies a clear legal basis to locate headquarters and make long-term investment decisions.

Where foreigners will be able to buy property in Saudi Arabia

The approved list does not cover entire cities, but rather key development territories around the most prominent projects.

Riyadh: the zones include Qiddiya, New Murabba, Sports Boulevard, Arts District, Diriyah Gate, King Salman Park, Sidra, King Abdullah Financial District, as well as the area of the King Salman International Airport.

Jeddah: zones are designated in the city center and across 55 separate development plots throughout the province.

Makkah and Madinah: the list also includes projects in both cities, but with a restriction—ownership is allowed only for Muslims, whether residing in the Kingdom or located abroad. In addition, the right extends to licensed Saudi companies and capital market instruments. Among the approved projects in Makkah are Abraj Makkah, Jabal Omar, and King Salman Gate, while in Madinah they include Downtown Madinah and Diyar Al-Maqar.

Beyond that, the list includes AlUla and the Kingdom’s planned mega-projects, including NEOM, Amaala, and the Red Sea project.

A historic shift—implemented step by step with oversight

For much of Saudi Arabia’s modern history, foreign ownership of real estate was more the exception than the rule. A 2000 provision governed non-resident acquisitions on a case-by-case basis, with an assessment of the situation and a decision by the regulator.

The new law replaces the discretionary approach with a zoned model. Foreigners may hold property or in rem rights only within territories defined by the Council of Ministers. At the same time, the maximum ownership share and the usage periods are set separately for each zone.

The law had been in effect for about five months without an approved map. Now the map has been published, and a transfer fee has also been established—up to 5% upon disposal of property by non-residents. It is collected in addition to the existing 5% real estate transfer tax.

In Guvenç Ketençiy’s view, CEO of the Turkish law firm Ketenci & Ketenci (which advises clients under the Premium Residency program), zoning is a deliberate strategy.

“The current approach is intentionally balanced rather than overly restrictive,” Ketençiy said. According to him, the market is “effectively opening in stages” so regulators can monitor deal volumes, price dynamics, compliance levels, and foreign participation before considering further expansion.

He also points to an international precedent: many countries that successfully attracted foreign investment into real estate began by opening specific areas, gauged market reaction, and then gradually expanded the regime.

Can zoning meet foreigners’ demand?

The question of whether the selected territories can “absorb” the level of demand Saudi Arabia expects to attract does not change the assessment of the quality of the legal framework itself. In Ketençiy’s view, the strongest draws are Riyadh and Jeddah, because those are where economic growth, expat communities, international employers, and large-scale development projects intersect.

Including projects in Makkah and Madinah may also be significant: historically, Muslim investors often view ownership in the holy cities as part of a lifestyle element and a long-term capital preservation solution.

At the same time, the expert warns against viewing the zoning list as “the whole picture.” Buyers assess not only the ability to purchase, but also rental demand, liquidity, exit options, the developer’s track record, legal certainty, and financing availability.

In his phrasing, zoning is only one part of the equation.

Link to the Premium Residency program

Previously, the main legal route for a foreigner to acquire housing in Saudi Arabia was directly tied to Premium Residency—an investor residency program launched in 2019. In 2024–2025 (from January 2024 to July 2025), as accessibility criteria expanded, more than 40,000 applications were filed.

Ketençiy does not expect an immediate surge in applications specifically due to the new zones. However, he believes the decision will support the shift already underway.

His argument is that ownership closes a psychological gap that is not created by residency status alone: owning real estate builds a sense of greater stability and involvement, naturally complementing the long-term residency program.

Saudi Arabia’s positioning versus other GCC countries

The expert does not see a scenario in which the Kingdom would “displace” Dubai or other established hubs in the GCC. Instead, Saudi Arabia is likely to develop as a complementary direction within the region’s investment strategies.

“Saudi Arabia’s advantage lies in the scale of its domestic economy, the long-term Vision 2030 agenda, substantial infrastructure investment, and policy consistency,” Ketençiy said.

In his assessment, access to ownership is important, but what ultimately matters is how the system performs once deals begin: how quickly transactions are completed, how transparent registration is, how disputes are resolved, and whether rules are applied consistently over time.

According to the Real Estate General Authority, Saudi Arabia’s real estate market could grow from roughly $75 billion in annual transaction value in 2025 to $101.6 billion by 2029—about 8% growth per year. For the first time, foreign investors now have a clearly defined legal map to plan their investments.

If you’re planning a move and long-term investment in Saudi Arabia, the newly approved zones for foreign property ownership are a meaningful step toward clearer investment conditions. Digital Nomad will help you understand the requirements, timelines, and practical options—so you can build a strategy that fits your goals. Start with a clear overview of your route here: https://digital-nomad.gr/en/goldenvisa.

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