Starting from January 2026, Saudi Arabia will allow non Saudis (including foreign individuals and foreign-funded companies) to own residential and commercial real estate in designated areas of major cities such as Riyadh and Jeddah, covering independent residences, apartments, office buildings, retail spaces, logistics centers, hotels, resorts, etc. Buyers can obtain perpetual ownership (non leasing rights); If the investment in a commercial project exceeds 30 million Saudi riyals (approximately 8 million US dollars), is development oriented, and operates within 5 years, full ownership can be obtained.

Copy Dubai Miracle, Serve Vision 2030

Saudi Arabia directly learned from Dubai's experience - after Dubai opened its permanent ownership area to foreigners in 2002, it attracted billions of international capital. At present, 80% of residences in prime locations are held by foreigners, becoming a regional benchmark.

Saudi Arabia hopes to attract international capital, increase housing supply, balance the market, and promote economic diversification (reducing dependence on oil) by opening up the real estate market, while also improving infrastructure for international events such as the 2030 World Expo and the 2034 World Cup.

Rising heat, significant growth potential

Current situation: Real estate accounts for 5.9% of Saudi Arabia's GDP in 2023, doubling to 12% in 2024; Riyadh and Jeddah have seen a double increase in housing prices and rents, with strong demand for residential and office projects.

Transaction scale: From July 2023 to July 2025, the total amount of real estate transactions in Saudi Arabia reached 1.2 trillion riyals (approximately 319.8 billion US dollars); It is expected that the market size will reach 101.62 billion US dollars in 2029, with an average annual growth rate of 8% starting from 2024.

Capital response: After the policy news was announced, the stock prices of several listed real estate companies in Saudi Arabia, such as Retal Urban and Saudi Real Estate, surged by over 5% on the Tadawul exchange, and the real estate index hit a new high since May.

Clear restrictions and digital management

Regional restrictions: Foreign ownership is limited to areas designated by the Real Estate Administration (REGA), such as Riyadh, Jeddah, and key economic zones.

Usage restrictions: The property must be used for residential or investment purposes, and abuse is prohibited; The upper limit of foreign ownership in Mecca and Medina is 49% (limited to listed real estate companies or convertible debt investments only) to protect the sanctity of the holy city.

Process simplification: All transactions are processed through the Absher e-government platform, simplifying registration and transfer processes and enhancing transparency.

Rights coordination: Connected with the Saudi Arabia Advanced Residence Program, holders enjoy property rights similar to those of nationals; Ownership and residence rights are decoupled, and can be purchased without a residence permit.

Multi domain collaboration to assist transformation

Stimulating residential construction: The influx of international capital will drive residential development in core cities such as Riyadh and Jeddah, easing supply pressure.

Tourism real estate is heating up: Starting from 2026, Saudi Arabia will partially lift the ban on alcohol (limited to about 600 locations such as five-star hotels and high-end resorts, with an alcohol content of ≤ 20%), which may increase the demand for tourism real estate in conjunction with pilgrimage related needs.

Unleashing the potential of commercial real estate: As of mid-2025, 550 foreign startups have obtained investment permits from Saudi Arabia, with an annual growth rate of 118%; The strengthening of the entrepreneurial center's position will drive demand for office and retail space (expected to increase retail real estate supply in Riyadh by 50% by 2027).

Significant early advantages, benefiting multiple industries

Core opportunity: Property values lower than Dubai, early entry has pricing advantages; NEOM、 Large scale projects such as the Red Sea project are suitable for long-term holding; Urbanization and young population support the demand for first-line leasing, and the rental yield is considerable.

Beneficial industries: real estate development (luxury residential, mixed commercial projects), construction, building materials, mortgage finance, hotel operations, legal and consulting services, etc.

Saudi Arabia's opening of the real estate market is not only a relaxation of regulations, but also a signal of national strategic economic transformation - by attracting global capital and talent, it promotes the economy to shift from "oil dependence" to "diversified driving", providing a new entrance to the Middle East market for international investors. (This article is from the official website www.seetao.com of Jian Dao. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website infrastructure engineering column editor/Wang Xia