Saudi Real Estate: Landmark Law Unlocks New Investment Opportunities for Foreign Buyer

Saudi Arabia has just transformed the landscape of its real estate sector. A sweeping new law, passed in July 2025, opens the Kingdom's property market to foreign investors for the first time, marking a pivotal shift in national policy and a high-potential opportunity for global businesses.

In this article, we explore what the new law entails, where foreign ownership will be allowed, and how this policy realignment is reshaping Saudi real estate as a strategic entry point for international investors.

Real Estate Investing Reimagined: What the New Law Changes

In July 2025, Saudi Arabia enacted the "Law of Real Estate Ownership and Investment by Non-Saudis," a transformative regulation set to take effect from January 2026. This law permits foreign individuals and companies to own property, including commercial, residential, and agricultural assets, in designated zones across the Kingdom.

Key highlights include:

• Ownership Zones: Foreigners will be able to purchase real estate in areas such as Riyadh, Jeddah, and designated economic cities. However, sensitive locations such as Mecca and Medina remain restricted, with exceptions for approved projects.
• No Residency Required: Ownership is decoupled from residency—meaning investors can buy without holding a Saudi residency permit.
• Regulatory Oversight: The Real Estate General Authority (REGA) will manage all foreign ownership applications, with detailed regulations expected by early 2026.
• Commercial Investment Thresholds: For development projects, investors may need to commit a minimum capital (reportedly SAR 30 million) and comply with build-to-operate deadlines.

This legislative overhaul positions Saudi Arabia as an increasingly competitive alternative to other Gulf real estate hubs.

Real Estate Investment in Saudi Arabia: Timing the Market

Saudi Arabia's new policy is a reform is designed to stimulate foreign direct investment (FDI) in support of Vision 2030, the Kingdom's diversification blueprint.

For international investors, this timing is crucial:

• Early Entry Advantage: Property values remain below those in Dubai and Qatar, providing a first-mover pricing opportunity.
• Mega Projects Opening: NEOM, The Line, and the Red Sea Project are now accessible for long-term stakeholding.
• Rental Yields & Population Growth: Rapid urbanisation and a youthful population create robust rental demand in Tier 1 cities.

Businesses catering to high-net-worth individuals (HNWIs), global investors, and expat markets should begin realigning their Saudi market entry strategies.

Where the Opportunities Are: Strategic Sectors for Real Estate Firms

This reform creates downstream opportunities across sectors:

• Real Estate Developers can now plan luxury residential and mixed-use commercial projects targeting foreign buyers.
• Brokerage and Advisory Firms will be in demand for navigating the legal framework and identifying viable zones.
• Hospitality Operators can tap into real estate-linked tourism plays, especially in destinations like AlUla and the Red Sea.
• Legal and Structuring Services will be critical for guiding international buyers through Saudi’s regulatory intricacies.

With the market opening, the need for trusted local partners becomes paramount.

Saudi Arabia’s real estate liberalisation is one of the most consequential shifts we’ve seen in the region this decade. This creates a legitimate runway for global capital to enter in a structured, policy-supported way.

A Gateway Moment for Foreign Investors

Saudi Arabia's shift to open its real estate market is more than regulatory—it’s strategic. For business leaders considering expansion, it signals a timely entry point into a high-growth market. Whether you’re a developer, broker, or investment fund, now is the moment to assess Saudi Arabia's emerging real estate landscape.

Peninsula has supported over 1,500 businesses in navigating Saudi’s complex setup landscape. If you're exploring market entry or restructuring to take advantage of these new regulations, book a free consultation with our experts today.

About Alistair:

‍Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.

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Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.

Email: Alistair@peninsulacs.com

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