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Can foreigners buy property in Saudi Arabia? The 2026 ownership law, explained

Since 22 January 2026, Saudi Arabia’s updated Law of Real Estate Ownership by Non-Saudis is in force. For the first time, residents, overseas buyers and foreign companies have a clear, digital route to owning property in cities such as Jeddah and Riyadh. Here is what it means in practice.

By Dashen Real Estate · Jeddah · Updated September 2026 · 6 min read

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What changed in 2026

The Council of Ministers approved the updated law in July 2025 and, after a 180-day transition, the Real Estate General Authority (REGA) announced that it took effect on 22 January 2026. The aim is simple: open the Saudi property market to international capital while keeping clear safeguards — a key step under Vision 2030.

Who can own property

  • Non-Saudi individuals living in the Kingdom (with a valid Iqama).
  • Non-Saudi individuals living abroad.
  • Foreign companies and entities, including investment funds, after registering with the Ministry of Investment.

Ownership can take several forms, including full title, long-term leasehold and usufruct rights, depending on the property and location.

Where you can buy

Ownership is permitted within geographic zones defined by the authorities in regulated cities — and Jeddah is one of them, alongside Riyadh. REGA publishes the detailed zones in its Geographical Zones Document, so the exact location of a property matters as much as the property itself.

Makkah and Madinah follow special rules: ownership in the two holy cities is restricted to Saudi companies and Muslim individuals, under specific conditions.

How to apply, step by step

  1. Residents: apply directly on REGA’s Saudi Properties portal using your Iqama number — verification is automated.
  2. Non-residents: first obtain a digital identity through a Saudi embassy or consulate, then apply on the same portal.
  3. Companies: register with the Ministry of Investment through the Invest Saudi platform, obtain the unified number (700), then complete the process online.
  4. Register the purchase in the national Real Estate Registry — registration is what makes your ownership legally complete.

Costs to plan for

  • The standard 5% Real Estate Transaction Tax (RETT) on property sales.
  • A transfer fee of up to 5% of the property value that can apply to non-Saudi ownership transactions.
  • Professional costs such as valuation, legal review and registration.

The law also carries serious penalties — fines of up to SAR 10 million and possible forced sale — for acquisitions based on false information, so doing things correctly from day one matters.

What this means for Jeddah buyers

Jeddah combines a coastal lifestyle with some of the Kingdom’s most established residential districts. For international buyers, the new framework turns interest into a practical plan: confirm the zone, verify the property, register it properly — and choose an address that works for both living and long-term value.

That is exactly where Dashen helps: we shortlist properties that fit your budget and eligibility, coordinate with the relevant parties and stay with you until ownership is registered.

This article is general information prepared by Dashen Real Estate and is not legal, tax or financial advice. Regulations in Saudi Arabia are updated regularly — always confirm the current rules with the Real Estate General Authority (REGA) and qualified advisers before you commit.

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