Saudi Arabia’s 2026 Foreign Ownership Law: What Developers Should Know

On 21 January 2026, Saudi Arabia’s new law on real estate ownership by non-Saudis came into force (Royal Decree M/14). It replaces the framework from 2000 and opens property ownership to foreign individuals and companies in zones designated by the authorities. For developers in Riyadh and Jeddah, it means a new group of buyers. Here is what to know.

Who can buy

The law covers foreign individuals, foreign companies, Saudi companies with foreign shareholders, non-profit entities and diplomatic missions. Ownership is allowed inside geographic zones that the Council of Ministers designates with the Real Estate General Authority (REGA) and other bodies. These include large parts of Riyadh and Jeddah. Makkah and Madinah have special restrictions.

What it costs the buyer

Reports on the law describe combined fees and taxes of up to about 10% on foreign purchases, and penalties of up to SAR 10 million for violations, including public auction of property bought using false information. Your buyers will ask about costs, so prepare a clear answer with your lawyer.

What changes for your sales team

• Check the zone first. Before you market to non-Saudis, confirm the project is inside a designated zone, and say so on your project page.
• Expect remote buyers. Many new buyers live elsewhere in the Gulf or abroad. They will compare projects on a phone before visiting.
• Show exactly what they buy. A foreign buyer does not know the neighbourhood. A live map on the real satellite view shows the plot or unit, the streets, the distance to main roads and what is nearby.
• Answer in English, and fast. Have English material and an English-speaking contact ready, and reply to enquiries within minutes.

Off-plan projects still need Wafi

Nothing in the new law changes the off-plan rules. Projects sold before completion still need a Wafi licence and an escrow account. Foreign buyers will look for both, so show them clearly.

This guide is general information, not legal advice. Implementing rules and zone maps are published by the authorities and can change; confirm the details with REGA or your lawyer.