Saudi Arabia allows foreigners to own real estate in major cities starting 2026

Saudi Arabia has launched a landmark policy allowing foreigners to own real estate in designated zones within major cities like Riyadh and Jeddah, triggering sharp volatility in Tadawul-listed real estate stocks including Dar Al Arkan and Umm Al Qura. This move, effective January 2026, replaces a restrictive residency-based system with a zoning-driven framework, significantly expanding investment opportunities for registered foreign individuals, companies, and diplomatic missions while attracting global market attention. The new law imposes strict conditions for the holy cities of Makkah and Madinah, where only Muslim foreigners and Saudi companies with foreign shareholders may acquire limited property rights under stringent regulations. The shift marks a transformational step in Saudi Arabia's real estate landscape, aiming to boost foreign investment and economic diversification as part of its Vision 2030 goals, with detailed guidelines to be issued through the official "Istithlaa" platform soon.