TL; DR
Starting January 1, 2026, Saudi Arabia will allow foreign nationals, including expats and overseas investors, to purchase residential and commercial property in designated zones like Riyadh and Jeddah. New rules and safeguards are on the way. Over the next 180 days, executive regulations will be released on the “Istitlaa” public consultation platform. This move is part of Vision 2030 and aims to boost the non‑oil economy, construction, banking, property services, cement, and more. Expat buyers should start tracking updates, prepare for legal steps like iqama or Premium Residency, and compare with Dubai’s market.
What Global Investors Need to Know About Expat Real Estate Riyadh Law 2026
For years, global investors viewed Saudi real estate as too restricted. This change opens a path for international buyers to tap into one of the region’s most ambitious markets. With clearer rules, long-term potential, and government backing, it’s a move that could reshape the real estate map in the GCC. This blog breaks down 14 things you need to know about expat real estate Riyadh, so you can be prepared beforehand.
This reform is a direct push under Vision 2030 and has clear goals.
- Attract foreign capital
- Open up high-growth areas like Riyadh, Jeddah, and NEOM, and bring more structure and transparency to the real estate sector.
1. Who Can Buy?
- Foreign individuals with valid Saudi residency (iqama) or overseas citizens with proper business license may invest under the new rules (details on eligibility to be clarified)
- Foreign companies similarly qualified
- Premium Residency holders are included
- Not eligible: regular visa tourists or non‑residents [LM1]
- Zones: Riyadh, Jeddah, and others to be defined; Mecca & Medina have tight restrictions
2. Key Benefits of the Law (2026)
- Wealth building: Long‑term asset ownership rather than renting
- Income yields: Rental returns in growing cities
- Access to finance: New mortgage products expected via Saudi banks
- Legal clarity: Transparent buying processes, government‑approved titles
- Premium Residency alignment: Owning a home may support residency applications
- Part of Vision 2030: Stable governance and economic diversification
3. Where Can You Own Property?
- Designated urban zones: Yes- Riyadh, Jeddah (initially)
- Mecca & Medina: Not freely open. Only in limited cases, inherits, special permissions
- Future zones: Likely to include NEOM and Red Sea projects once regulations are finalized
4. When Does This Start?
- Effective date: January 2026
- Regulations: Within 180 days of gazette publication via the Istitlaa public portal
5. Why is Saudi Doing This?
- Vision 2030 goal: Diversify away from oil, boost non‑oil GDP & FDI
- Boost property supply: Expand housing stock and commercial space
- Stimulate investment: Attract global capital similar to Dubai’s experience
- Utilize excess capacity: Cement and infrastructure firms get new demand
6. What Sectors Will Benefit?
Detailed insights with stats are below:
Real Estate & Housing
- The sector grew from 5.9 % to 12 % of GDP in 2024
- It accounted for 6.5 % of GDP in 2024, with 2.5 % annual growth
Construction & Infrastructure
- Boosted by new housing, offices, megaprojects (NEOM, Red Sea)
- Cement plants at 30 % excess capacity- new demand will drive utilization
Banking & Mortgage
- Mortgage financing expected to grow; banks benefit from new loan products
Legal & Advisory Services
- High demand for legal, valuation, and real‑estate consultancy work
Cement & Building Materials
- Domestic demand from housing boom, urban expansion
PropTech & Real Estate Platforms
- Expert prediction: PropTech will get a structural push
7. What Should Expats Do Now?
- Stay updated on official regulations via the Istitlaa platform
- Connect with local agents/developers planning new projects
- Explore Premium Residency if aiming for an extended stay and legal ease
- Prepare legal documents: Valid iqama, proof of funds, bank statements, legal representation
8. How Investors Can Prepare
- Market research: Watch key cities and emerging zones
- Financial prep: Pre‑qualify for mortgages with Saudi banks
- Plan ROI: Estimate rental yields, capital growth
- Get advice: Trusted law firms, tax professionals
- Use PropTech: To track listings, legal status, planning permissions
9. Compliance & Legal Considerations
- Ministry of Interior approval required
- Title registration under Real Estate General Authority (REGA)
- IQAMA/Premium Residency screening
- Mecca/Medina rules are stricter, likely inheritance or company ownership cases only
- Taxes & fees: Evaluate transfer fees, registration costs
- Anti‑money laundering: Expect due diligence on funds origin
10. Will Saudi Compete with Dubai?
- Market size: Riyadh’s cost per sqm is significantly lower than Dubai’s (£1,200 vs £3,600‑12,000/sqm)
- Growth potential: Saudi offers higher potential returns and less bubble risk
- Regulation: More conservative and phased opening vs Dubai’s open freehold policy
- Investor appeal: Saudi’s giga‑projects and mega programs attract global capital. Dubai still has an advantage in terms of lifestyle and established freehold zones.
11. How to Buy Property as an Expat
- Wait for Istitlaa release of rules
- Choose a zone/city of interest (e.g., Riyadh)
- Engage an agent or developer with foreign buyer experience
- Prepare legal docs (iqama, passport, proof of funds)
- Secure financing or pay in cash
- Submit purchase requests via Ministry/REGA portals
- Complete MOU → SPA → Title Registration
- Consider rental management if buy‑to‑let
12. Why This Matters
- Long‑term asset creation for expats
- Supports Saudi aim to diversify economically, grow urban density, attract talent
- Signals openness, global confidence in Saudi real‑estate
- Opens pathway to more extended residency, even citizenship discussions
13. Things to Keep in Mind
- Watch executive regulations within the first half of 2025
- Zone restrictions: Not everywhere is open yet
- Mecca/Medina: Still off‑limits or severely restricted
- Use licensed professionals to avoid pitfalls
- Plan for 2026: Start financial and legal prep now
14. FAQs
Q: Can expats get a mortgage?
A: Yes, local banks will likely permit mortgages; rules forthcoming.
Q: Can I buy the property immediately?
A: No. The new law will be effective from 2026 January. However, many developments begin as rented units; buy‑to‑let is possible.
Q: What are fees like?
A: Typical property fees include registration; full details will be provided in upcoming regulations.
Q: Does buying property give me residency?
A: The Premium Residency scheme (green card) is separate, but property helps.
Q: Can I sell the property?
A: Freehold ownership allows you to resale or inheritance under standard rules.
Final Thoughts
Saudi Arabia’s new law marks a significant shift for expats and the Kingdom. It’s a chance to own a home or investment in a city on the rise. As Vision 2030 unfolds with big projects and new development zones, property ownership is both a practical and symbolic move. If you follow the updates, get your finances in order, and lean on solid legal advice, you could join the first wave of global buyers in Riyadh, Jeddah, and beyond.