On 8 July 2025, the Council of Ministers of Saudi Arabia approved a new law allowing non-Saudis to purchase and invest in real estate within designated areas of the Kingdom, marking a more open approach toward foreign ownership in line with its 2030 Vision and building on the successive recent regulatory developments.
What the New Law Will Cover
See our article here discussing the current position regarding foreign ownership. Under the new law, it is expected that foreign individuals and entities will be able to own or invest in property in certain zones identified by the Real Estate General Authority (REGA). These zones are expected to include high-demand areas such as Riyadh and Jeddah.
Significantly, foreign ownership in certain designated areas in Makkah and Madinah will be permitted but will be subject to additional controls and requirements, reflecting their cultural and religious importance.
Next steps
The official text has not yet been published in the Umm a-Qura Gazette (the official gazette in Saudi Arabia) and there will be a period of consultation. The new law is expected to enter into force in January 2026 and implementing regulations will be published within 180 days of the new law entering into force.
Conclusion
We wait to see the legislation and the implementing regulations, which will provide further clarity on the extent of the designated investment zones and the relevant licensing and approval processes involved. Based on the experience of the United Arab Emirates, this new law is expected to attract considerable foreign investment and will further diversify the economy away from oil.
