Saudi Arabia’s real estate market officially opens to foreign buyers on 21 January 2026, following Royal Decree M/14 (approved July 2025) and the updated Law of Real Estate Ownership by Non-Saudis. This major reform forms a central part of Vision 2030 and allows both individuals and corporate entities from outside the Kingdom to purchase multiple residential, commercial, industrial and agricultural properties – but only within designated zones approved by the Real Estate General Authority (REGA).
When Will Full Details Be Released?
The executive regulations, zone maps and final guidelines are expected to be published imminently by REGA and the Council of Ministers. High-growth locations in Riyadh, Jeddah and flagship mega-projects (NEOM, Qiddiya, Diriyah Gate, Red Sea Global) are widely anticipated to feature among the first approved zones. Ownership in the holy cities of Mecca and Medina remains tightly restricted, largely limited to Muslims with additional conditions.
Key Rules Under the New Law
- Foreign residents can own one personal residence outside designated zones (subject to limits).
- Non-residents are restricted to approved zones only.
- Corporate investors, funds and listed entities receive broader access, including for operational purposes.
- All transactions must be registered through the new Saudi Properties digital platform.
- Foreign buyers face higher transaction costs (approximately 10% total fees and taxes) compared with Saudi nationals (5%).
- The framework prioritises long-term investment and includes measures to discourage short-term speculation.
Saudi Arabia vs Dubai: Which Market Makes Sense in 2026?
This is positioned as a long-term play (10+ year horizon) rather than a fast-flip opportunity like Dubai. Saudi Arabia benefits from heavy government backing via giga-projects, ongoing economic diversification and comparatively stable pricing. Rental yields in prime Riyadh areas currently range between 5-8%, with consistent capital appreciation reported over recent years, yet the market has avoided the extreme volatility seen elsewhere in the GCC.
Dubai continues to offer:
- More mature liquidity and established freehold ownership rules
- Often higher short-term rental yields (typically 6-10% in prime districts)
- Faster transaction speeds and a proven track record for international buyers
However, Dubai faces growing supply pressure, with forecasts pointing to possible price softening in certain segments during 2025–2027 due to large-scale new deliveries.
Saudi Arabia is therefore expected to complement rather than directly challenge the UAE, attracting a different investor profile: patient, strategic, often regionally connected individuals and institutions seeking exposure to one of the world’s most ambitious economic transformation stories.
Should You Invest in Saudi Real Estate in 2026?
The opening represents genuine long-term upside, particularly for early movers who target quality assets in emerging high-growth zones. However, several factors remain critical:
- Wait for official REGA zone announcements and detailed regulations before committing.
- Focus on selectivity – prime locations, well-developed projects and strong fundamentals.
- Accept that market maturity, liquidity and perception as an “open” international destination will take time to build.
For investors seeking GCC diversification beyond the UAE, Saudi Arabia now offers significant untapped potential backed by political will and capital. Monitor REGA updates closely over the coming weeks for the clearest entry points. This is not a get-rich-quick market – but for those with a 10-year+ view, it could prove one of the region’s most rewarding new frontiers.
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