Introduction

Under Saudi Vision 2030, launched in 2016, Saudi Arabia initiated a significant transformation to build a diversified, knowledge-based economy, rather than relying primarily on oil. As part of this vision, the Kingdom opened new sectors to attract local and international investors. Among the most strategic pillars is the real-estate sector, which enhances quality of life, supports urban growth, and fuels sustainable development. To enable this, the government has enacted reforms that make the market more transparent and accessible.

In July 2025, Saudi Arabia approved the Law of Real Estate Ownership and Investment by Non-Saudis (Royal Decree No. M/14), replacing the 2000 law. The new framework allows foreigners both individuals and companies, to own and invest in property within designated zones approved by the Real Estate General Authority (REGA), while ownership in Makkah and Madinah remains restricted for non-Muslims. This landmark move reflects the Kingdom’s commitment to economic openness and its goal of becoming a leading global investment hub.

Current Real Estate in Saudi Arabia

The Kingdom’s reform agenda explicitly targets opening sectors to attract local and international investment and improve quality of life, and a further 4.3% year-on-year in Q1 2025. During the same quarter, REGA issued 7,875+ licenses across brokerage, marketing, consulting, property/facilities management, and auctions, and approved 105,000+ real estate advertising licenses. On the leasing side, REGA’s Ejar platform has registered more than 10 million rental contracts since launch, reflecting rising reliance on standardized, digital contracts.

Key facts of the law

Foreign individuals and companies may now own and invest in real estate within geographic areas designated by the Council of Ministers, based on recommendations from the Real Estate General Authority (REGA). This provision appears in Article (2) of the Law of Real Estate Ownership and Investment by Non-Saudis (Royal Decree No. M/14, 2025). The measure supports Vision 2030’s goal of attracting foreign investment and developing modern, sustainable cities.

Ownership in Makkah and Madinah remains prohibited for non-Saudis, except by inheritance or as otherwise permitted by future executive regulations. Article (5) of the same law clearly states that no non-Saudi may have the right of ownership, easement, or benefit over real estate located within those cities. A non-Saudi individual who legally resides in the Kingdom may own one residential property for personal use, provided it is outside restricted areas and subject to approval from the Ministry of Interior, as authorized in Article (6) of the law.

Licensed foreign companies may acquire real estate required for their business operations, such as offices or housing for employees, within approved zones. This right is granted under Article (3), which allows non-Saudi juridical persons licensed to conduct business in Saudi Arabia to own or benefit from property for the purpose of their authorized activities.
Details such as minimum investment values or development timelines have not yet been published; these will be defined later in the implementing regulations expected under Article (9), which mandates the issuance of executive rules within 180 days of the law’s publication.

3 predicted trends from Saudi’s new law

1. Investment Growth

The law is expected to boost both foreign and domestic investment, increasing capital inflows into the real estate sector. This outcome supports Vision 2030’s Economic Diversification Pillar, which targets higher foreign direct investment and private-sector participation in national development and is explicitly cited by REGA as a key objective of the updated ownership framework.

2. Urban Expansion

By widening ownership rights, the law encourages new city developments and supports balanced urban growth. These aims align with the Quality of Life Program and the National Housing Program under Vision 2030, which emphasize sustainable cities and improved housing supply. REGA confirms that foreign participation will “enhance competitiveness and contribute to the creation of vibrant, sustainable communities”.

3. Higher project standards

The entry of international developers is expected to raise construction quality, design innovation, and sustainability standards. REGA’s official brief states that the law aims to raise development quality, support sustainability, and enhance the competitiveness of Saudi cities globally. The Ministry of Investment adds that the new framework is part of broader efforts to attract world-class expertise and technology to the Saudi real estate market.

Market Impact and Opportunities for Foreign Companies

Foreign companies can now own real estate necessary for conducting their licensed activities in Saudi Arabia. The Ministry of Investment (MISA) confirms that non-Saudi entities may acquire or benefit from property required to operate within the Kingdom’s approved zones. The reform promotes strategic partnerships between Saudi and international developers, driving knowledge exchange, innovation, and the adoption of advanced technologies. The Real Estate General Authority (REGA) states that foreign participation aims to attract global expertise and institutional capital to strengthen the sector.

As international firms expand their footprint, new jobs and training programs are expected to emerge, supporting Vision 2030’s Human Capability Development Program. With transparent governance, an open investment framework, and clear long-term vision, Saudi Arabia’s real estate sector is rapidly evolving into one of the region’s most dynamic and globally competitive markets.

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