Saudi Arabia has implemented a new law from January 2026 allowing foreigners to purchase houses and other properties in designated areas. Both foreign residents living in the kingdom and those residing abroad can now buy property, though ownership remains prohibited in the holy cities of Mecca and Medina. The government stated that foreigners outside Saudi Arabia will be limited to buying in Riyadh and Jeddah, with a detailed map of approved zones to be published by March.

Foreign residents can apply through an online portal using their residence permit (Iqama) number, while non-residents must first obtain a digital ID from a Saudi embassy in their home country before applying online. Property transactions will incur up to a 5% real estate tax. The law also imposes strict penalties for false information or anonymous purchases, including fines up to 10 million Saudi riyals and property confiscation.

Analysts cited in the report believe the reform could boost foreign investment in Saudi Arabia’s real estate sector and accelerate development in selected areas of Riyadh and Jeddah.