The Gulf's real estate markets are undergoing their most significant transformation in decades as restrictions on foreign property ownership are systematically dismantled. Bahrain and Saudi Arabia are leading distinctly different approaches to opening their markets.
Bahrain Real Estate Reform 2026: Gateway for Foreign Property Ownership
Bahrain's real estate framework, regulated by the Real Estate Regulatory Authority (RERA) and the Survey & Land Registration Bureau (SLRB), offers non-GCC nationals a clear and accessible pathway to property ownership.
Freehold ownership permits non-GCC nationals and businesses to own property and underlying land permanently within designated zones including but not limited to, Marsa Al Seef, Amwaj Islands, Riffa Views, Durrat Al Bahrain, Diyar Al Muharraq, with Bilaj Al Jazayer added in April 2025 under a framework established in 2001 and refined through further decrees and amendments.
Outside designated zones, property acquisition by non-GCC nationals is generally not permitted. However, alternative structures may be available through long-term leasehold rights and usufruct rights.
Bahrain has accelerated digitalisation of land transactions through SLRB and RERA, streamlining the acquisition process for international buyers. All transactions must be registered with the SLRB to be legally recognised.
Bahrain recently enhanced its Golden Residence Visa programme by reducing the minimum real estate investment threshold from BHD 200,000 to BHD 130,000 in late 2025. The Bahrain Golden Residence Visa offers a 10 year renewable residence permit with full work rights and family sponsorship benefits, making the Golden Visa Bahrain real estate an attractive option for international investors.
These reforms align with Bahrain's Economic Vision 2030, which prioritises economic diversification and attracting international investment. GCC nationals enjoy near-parity with Bahraini citizens, able to acquire freehold property across most of the kingdom with inheritance and family transfers governed by Bahraini succession laws.
Bahrain has liberalised the commercial side of the real estate sector. Decision No. 71 of 2025 has expanded business activities eligible for 100% foreign ownership. Seven activities now permit full foreign ownership for substantial operators (minimum capital BHD 100,000). Five activities, including real estate brokerage, now allow unrestricted 100% foreign ownership, enabling foreign firms to operate brokerage services independently. Bahrain was amongst the first in the region to permit 100% foreign ownership in most commercial sectors, including real estate development, eliminating local partnership requirements.
Saudi Arabia Real Estate Ownership Law 2026: Vision 2030 Transformation
The Law of Real Estate Ownership by Non-Saudis (Royal Decree M/14, July 2025, effective 21 January 2026) replaces the restrictive 2000 framework with a modern geography-based system as part of Vision 2030.
The law defines "Non-Saudi" broadly to include individuals without Saudi nationality, foreign companies, non-profit entities and other legal persons. It preserves GCC citizens' privileges, with GCC nationals benefiting from reciprocity arrangements treating them similarly to Saudi nationals.
Non-Saudis may own property or acquire real property rights within geographical zones designated by the Council of Ministers based on REGA proposals though Makkah and Madinah remain for the most part restricted.
Resident non-Saudis may own one personal residence outside designated zones (excluding holy cities) after obtaining a Ministry of Interior licence. Premium residency holders (holders of the Saudi Golden Visa) may own real estate for residential, commercial and industrial purposes. Foreign companies and investment funds may acquire property within designated zones for commercial operations, with development investments requiring minimum thirty million SAR completed within five years.
All buyers pay 5% Real Estate Transaction Tax (RETT). Non-Saudi transfers incur an additional foreign transfer fee of up to 5%, totalling potentially 10% for non-GCC buyers. GCC nationals generally avoid the extra fee due to reciprocity agreements. Implementing regulations will clarify when this fee applies and potential waivers.
All non-Saudi real estate ownership must be digitally registered through the National Real Estate Registry. Violations attract fines up to SAR 10 million, with forced sale possible.
Property ownership provides a pathway to Premium Residency. Non-GCC nationals owning qualifying property valued at minimum SAR 4 million (approximately USD 1.07 million) can obtain renewable residence permits, provided the property has clear title and is free of mortgages or liens.
What Bahrain and Saudi Arabia’s Real Estate Reforms Mean for Global Investors
Bahrain and Saudi Arabia's reforms reflect a broader GCC transformation towards attracting international capital.
The two markets offer distinct opportunities. Bahrain provides accessible entry for individual investors and SMEs through modest thresholds and straightforward freehold acquisition in designated zones. Saudi Arabia focuses on institutional capital and transformational megaproject developments requiring substantial investment commitments.
GCC nationals retain reciprocal ownership rights as markets open to non-GCC investors. Despite ongoing regulatory refinements, the Gulf's real estate markets are clearly transitioning into genuine international investment destinations.
