In a groundbreaking move, Saudi Arabia has approved a new law allowing foreigners to buy property, marking a significant shift in its real estate landscape. Announced in July 2025 and set to take effect in January 2026, this Saudi property law 2025 aligns with Vision 2030’s goal to diversify the economy. At Time2Rent (T2R), we’re breaking down what this means for foreigners buying property Saudi and the opportunities for real estate investment Saudi.
Overview of Saudi Property Law 2025
On July 8, 2025, Saudi Arabia’s Cabinet, chaired by Crown Prince Mohammed bin Salman, approved the Law of Real Estate Ownership and Investment by Non-Saudis. This law permits foreign individuals and companies to own property in designated zones, expanding beyond the previous restrictions. The move aims to attract international investment and boost the real estate sector, with implementation starting January 2026.
Who Can Benefit from Foreigners Buying Property Saudi?
The law applies to non-Saudis, including expatriates with valid residency (Iqama) or Premium Residency, as well as foreign companies. Unlike earlier rules requiring specific approvals for residency-linked purchases, this law broadens access, though ownership is limited to approved areas. GCC nationals and foreign investors can now explore opportunities, making real estate investment Saudi more inclusive.
Designated Zones and Restrictions
Property ownership will be allowed in specific zones, with Riyadh and Jeddah confirmed as initial locations. However, Makkah and Madinah will have special restrictions due to their religious significance, likely requiring additional permissions for any transactions. The Real Estate General Authority (REGA) will finalize the list of zones and publish detailed regulations on the Estitlaa platform within six months, allowing public feedback.
Key Requirements for Real Estate Investment Saudi
Foreign buyers must meet conditions such as holding a valid residency permit or meeting investment criteria. A 5% real estate transaction tax applies, and purchases will be processed digitally via platforms like Absher. The law ensures market stability with safeguards to protect local interests, balancing growth with national priorities.
Economic Impact and Opportunities
This Saudi property law 2025 is expected to increase property supply, drive development in cities like Riyadh and Jeddah, and support Vision 2030 projects like NEOM. Following the announcement, Saudi real estate stocks surged over 5% on the Tadawul exchange. For foreigners buying property Saudi, this opens doors to long-term wealth-building in a fast-growing market, mirroring successes in Dubai and Abu Dhabi.
Next Steps for Investors
The government will release full details later in 2025. Interested parties should monitor the Estitlaa platform for updates and consult local experts. This real estate investment Saudi opportunity could transform the market, especially for expatriates and global investors seeking new horizons.
Explore with Time2Rent
Ready to explore real estate investment Saudi under the new Saudi property law 2025? Time2Rent (T2R) is here to guide you with expert insights and resources. Visit https://time2rent.net now to start your journey into this exciting market!
