Saudi Arabia opens property ownership to foreign buyers from 22 January, Makkah and Madinah restricted

Saudi Arabia’s amended real estate ownership framework took effect on 22 January 2026. Non-Saudi individuals, companies and entities can now apply to own property across the Kingdom, including in major urban centres such as Riyadh and Jeddah. Applications are made through the Saudi Arabia Real Estate digital platform.

Ownership in Makkah and Madinah remains limited to Saudi companies and Muslim individuals. At the Real Estate Future Forum in Riyadh, property developers said they are seeing increased interest from international investors following the amendments. They said the regulations permitting foreign ownership of land are beginning to influence market behaviour, including decisions by developers and speculators, and are already shaping large-scale projects.

What changes

The framework opens property ownership to non-Saudis across the Kingdom, with a separate rule for the two holy cities. Eligibility is not limited to private buyers. Foreign companies and entities can apply as well as individuals. In Makkah and Madinah, ownership stays limited to Saudi companies and Muslim individuals, so foreign companies and entities cannot own property in either city.

Location	Who can apply to own property
Riyadh	Foreign individuals, companies and entities
Jeddah	Foreign individuals, companies and entities
Other areas of the Kingdom	Foreign individuals, companies and entities
Makkah	Saudi companies and Muslim individuals only
Madinah	Saudi companies and Muslim individuals only

Applications for ownership go through a single digital channel, the Saudi Arabia Real Estate platform.

Key facts

Item	Detail
Date in effect	22 January 2026
Application channel	Saudi Arabia Real Estate digital platform
Eligible applicants	Non-Saudi individuals, companies and entities
Scope	Property across the Kingdom, including land
Named cities open to foreign buyers	Riyadh, Jeddah
Restricted cities	Makkah, Madinah (Saudi companies and Muslim individuals only)

Context

One large-scale project already shaped by the change is Alma Destination, a waterfront mixed-use tourism development on the Red Sea coast in Jeddah. Plans encompass residential units, hospitality offerings, marina facilities and entertainment venues. The development is opening opportunities for hospitality operators and investors.

Zuhair Bakheet, CEO of Al Thuraya Al Omranya Properties and master developer of Alma Destination, said the project’s location in Jeddah, between the holy cities of Makkah and Madinah, enhances its appeal to international buyers. “If we attract people who would love to have a unit within the Makkah and Madinah region, it’s a good option,” he said. He named Malaysia, Indonesia and Egypt as Muslim countries whose buyers would love to have a unit within close proximity of the holy cities.

Emaar Economic City, the main developer of King Abdullah Economic City, is also factoring the change into its strategy. Chief Investment Officer Ali Al-Khatib said: “We believe these new regulations for non-Saudi ownership are a significant turning point in the real estate sector in the Kingdom, and specifically for King Abdullah Economic City.” He said the company had already seen interest from last year, before the system was launched, with interest “from all around the world”, including Southeast Asia, Africa, Europe and the West.

Developer	Project	Markets named
Al Thuraya Al Omranya Properties	Alma Destination, Red Sea coast, Jeddah	Malaysia, Indonesia, Egypt (named as likely buyers)
Emaar Economic City	King Abdullah Economic City	Southeast Asia, Africa, Europe, the West (interest already received)

What it means for operators

For short-term rental and hospitality operators, the reform widens who can own property in the Kingdom. Foreign individuals can now apply to own units in cities such as Riyadh and Jeddah, which enlarges the pool of potential property owners. Where those owners buy into tourism developments, operators with a local presence may find new owner clients.

Foreign companies and entities are eligible too. An international operator can therefore apply to own property directly, rather than working only with Saudi owners. Mixed-use tourism schemes such as Alma Destination, which combines residential units with hospitality, marina and entertainment components, are among the projects where developers see opportunities for hospitality operators and investors.

The demand developers describe is interest from international investors, and the rules have only just taken effect. Operators should treat this as an early indication of foreign appetite and plan around the geographic limits. Any foreign-entity ownership plan must leave out Makkah and Madinah.

Next step	Why
Review eligibility on the Saudi Arabia Real Estate platform	Applications for ownership are made there
Exclude Makkah and Madinah from foreign-entity plans	Ownership there is limited to Saudi companies and Muslim individuals
Talk to developers of tourism schemes in Jeddah and King Abdullah Economic City	Both report interest from international investors
Consider buyers from Malaysia, Indonesia and Egypt for Jeddah stock	A Jeddah developer names them as likely buyers near the holy cities

Cover photo: Tayssir Kadamany on Pexels.