Saudi Cabinet Approves Landmark Law Allowing Property Ownership by Foreigners

In a major policy shift aimed at boosting foreign investment, the Saudi Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, has approved a new law regulating property ownership by non-Saudis. The legislation, passed during the Cabinet’s weekly session on July 8, will come into effect in January 2026.

The new law is part of Saudi Arabia’s broader strategy to diversify its economy, attract international investors, and develop the real estate sector. It will allow foreigners to own property in designated areas across the Kingdom, with certain conditions applying to locations such as Makkah and Madinah.

Acting Minister of Media Dr. Essam bin Saeed announced the Cabinet’s decision through the Saudi Press Agency (SPA), describing the move as a calculated effort to stimulate economic growth while maintaining social and market equilibrium. “The law will open the door to global investors while ensuring stability through clear geographic and procedural guidelines,” he said.

Minister of Municipal and Rural Affairs and Housing Majed Al Hogail welcomed the legislation, stating it reflects the government’s continued commitment to real estate sector reforms. As Chairman of the Real Estate General Authority, he emphasized the law’s potential to increase housing supply and attract international developers, all within a regulated framework.

Under the law, the Real Estate General Authority will determine zones where foreign ownership is permitted. Riyadh and Jeddah have been identified among these areas, while ownership in the holy cities will be subject to special regulatory conditions. Executive regulations outlining procedures, restrictions, and compliance mechanisms are expected to be released within six months on the Istitaa public consultation platform.

The Cabinet session also included a briefing by the Crown Prince on his recent diplomatic engagements, including meetings with Indonesian President Prabowo Subianto and German Chancellor Friedrich Merz. The Cabinet commended the outcomes of the first Saudi-Indonesian Supreme Coordination Council meeting, highlighting new agreements in clean energy, petrochemicals, and aviation fuel services.

Beyond real estate reforms, the Cabinet reviewed several national initiatives. These included approval of the updated National Transport and Logistics Strategy, the adoption of World Drowning Prevention Day on July 25, and the launch of a guarantee program by the Social Development Bank to expand financial inclusion for vulnerable groups.

In addition, the Cabinet celebrated Saudi Arabia’s recent advancements in digital infrastructure. It welcomed the country’s top rankings in the 2025 ICT Development Index and the World Competitiveness Yearbook for cybersecurity, as well as international recognition for its “Child Online Safety” resolution adopted by the UN Human Rights Council.

The session concluded with praise for recent crackdowns on narcotics trafficking, reinforcing Saudi Arabia’s ongoing efforts to protect public health and security.