On 22 January 2026, Saudi Arabia’s Law of Real Estate Ownership by Non-Saudis came into force. In June, the Cabinet approved the executive regulations and the map of designated zones, and applications opened on the Saudi Properties portal. For the first time, a buyer in Cairo, London or Kuala Lumpur can hold titles in Riyadh, Jeddah and, if Muslim, in Makkah and Madinah.
Now that the legal door is open, what changes now depends on 3 practical questions: who the buyers really are, how they will pay, and who will guide them.
What the studies say about demand
The most detailed evidence so far is Knight Frank’s Destination Saudi 2026 report. It surveyed 1,550 people across Algeria, Egypt, India, Malaysia, the UK and the US, including 752 expatriates living in Saudi Arabia and the UAE. Its headline estimate is US$63 billion of private global capital that could target Saudi real estate.
First, appetite is strongest in North Africa, where 90% of respondents in Egypt and Algeria say they are keen to invest. Second, the motive is mostly financial: 51% cite returns, 18% cite Vision 2030 growth and 17% cite religious or cultural ties. Third, budgets are modest. Some 63% of international buyers plan to spend under US$1 million, and most of them expect a large villa or townhouse for that price.
This shows that the foreign buyer is not only the ultra-wealthy investor. It is the upper-middle-income professional and the diaspora family, and the product on offer does not yet match their budget. The first months have also been quiet. Analysts describe clear rules but few transactions so far, and Knight Frank expects a temporary pause in non-resident demand because of regional tensions. But that is not a loss in interest.
The first buyers are already here
The largest pool of foreign demand is within the population itself. GASTAT estimates that 15.7 million non-Saudis lived in the Kingdom in mid-2024, or 44.4% of a population of 35.3 million. Around four in five of them live in the four regions where the new zones sit.
| Region | Non-Saudi Residents (2022 census) |
|---|---|
| Riyadh | 4.15 million |
| Makkah region (including Jeddah) | 3.87 million |
| Eastern Province | 2.18 million |
| Madinah | 0.79 million |
Source: GASTAT census 2022, via GLMM
These residents already pay rent, know the neighbourhoods and earn in riyals. The law also treats them more generously than non-residents: a legal resident may own one home for personal use outside the designated zones, subject to the special rules for Makkah and Madinah.
On 6 October 2026, the Ministry of Interior announced that highly skilled expatriates can obtain entry visas for their families while their own work visa is being completed. The rule covers spouses, sons under 25 and unmarried daughters. A professional who arrives with a family rents a larger home, enrols children in school and stays longer. That is the profile of a future owner.
The financing gap
For a non-resident, there is still no established Saudi mortgage. This is an area which needs development. The right to buy does not come with a mortgage yet. This depends on each bank’s policy. In July 2026, SAMA updated its account rules so qualifying non-resident buyers can open Saudi bank accounts. That is a necessary first step.
Resident expatriates are better placed but it is still high. Banks quote profit rates of roughly 4.1% to 5%. The conditions are an obstacle. Reported requirements include minimum monthly salaries of SAR 19,000 to SAR 25,000, down payments of at least 30% and, at some banks, Premium Residency. Tenors are tied to retirement age and to the stability of the employer.
These terms exclude most of the 15.7 million. If the Kingdom wants its resident expatriates to become owners, expat mortgages must become simpler: lower salary thresholds, clearer treatment of iqama renewal risk, and products designed for off-plan purchases. Until that happens, the buyer pool will be narrower than the surveys suggest.
Four cities, four different markets
Foreign ownership is granted zone by zone, not city by city. The approved map gives Jeddah 57 zones, Riyadh 9, Makkah 12 and Madinah 10, and REGA has left the door open to adding more.
Riyadh is the first choice of 55% of global investors, naturally. It is the employment capital, home to the regional headquarters programme and the largest expatriate population. Its nine zones are landmark developments such as Diriyah, New Murabba, King Salman Park, KAFD, Qiddiya and Sedra. The potential is end-user housing for professionals and long-term rental income. The risk is price: prime Riyadh stock sits above most foreign budgets.
Jeddah ranks second at 46% and has by far the widest map. It offers the Red Sea coast, a long history as a merchant city and a diverse resident community. It is also the gateway to the holy cities. Expect demand for waterfront apartments, family homes and second homes from Egyptian, Levantine and South Asian buyers.
Makkah is open to Muslim individuals and Saudi companies only. Among Muslim respondents, 59% name it as a target. Demand here is driven by faith, proximity to the Haram and pilgrim occupancy, not by employment. The potential lies in serviced and branded residences that can be used during Hajj and Umrah and rented for the rest of the year.
Madinah is the quiet surprise. It ranks third overall at 43%, ahead of Makkah, and is the top choice of 63% of Muslim respondents. Interest is strongest from the UK (59%) and Malaysia (58%). Prices are lower, the pace of life is calmer, and many buyers want a home to retire to. It is the emerging residential market to watch.
My advice to the developer is to build inside the zones, price for buyers with under US$1 million, offer payment plans that substitute for missing mortgages, and be ready for a two-tier market between designated zones and the rest of the city.
Why foreign buyers need an adviser
In a mature market, an adviser saves time. In a newly opened one, an adviser prevents mistakes that cannot be undone. Four reasons apply in Saudi Arabia today.
- Zone verification. Two streets in the same district can sit on either side of a boundary. Eligibility must be checked against the official Saudi Properties map before any deposit is paid.
- Compliance. Ownership rules differ for residents, non-residents, Muslims and companies. Penalties for false information reach SAR 10 million and forced sale.
- Cost. The 5% real estate transaction tax, REGA fees, service charges and exit costs change the yield. So does the choice between freehold and usufruct.
- Developer and product due diligence. Off-plan buyers need to confirm licensing, escrow and delivery record, and to negotiate the payment plan that replaces a mortgage.
The opening of the Saudi market is real, and it is permanent. It will reward buyers who arrive early with good information, and it will be unforgiving to those who arrive with assumptions imported from the rest of the world. The law has changed who may buy. Good advice will decide who buys well.
About the Author:
Mohamad Rabi Itani is a real estate professional with extensive experience on projects in Saudi Arabia and the Middle East. He writes about real estate, business, projects and marketing.
References:
Law Experts, G. (2026, July 30). Saudi Arabia Activates Its Nonsaudi Property | Global Law Experts. Global Law Experts. https://globallawexperts.com/saudi-arabia-activates-its-nonsaudi-property-2/
Saudi Arabia: Population by nationality (Saudi/non-Saudi) and administrative region (governorate) of residence (2022) - GLMM. (2023, June 21). GLMM. https://gulfmigration.grc.net/saudi-arabia-population-by-nationality-saudi-non-saudi-and-administrative-region-governorate-of-residence-2022/ ET Online. (2026, October 7). ‘Expatriates may bring their families to the Kingdom’; Saudi Arabia refreshes family visa process. The Economic Times; Economic Times. https://m.economictimes.com/nri/latest-updates/expatriates-may-bring-their-families-to-the-kingdom-saudi-arabia-refreshes-family-visa-process/articleshow/134757161.cms
200.2.4/ Non-Saudi Natural Persons Outside Saudi Arabia Covered by the Law of Real Estate Ownership by Non-Saudis | SAMA Rulebook. (2019). Sama.Gov.Sa. https://rulebook.sama.gov.sa/en/20024-non-saudi-natural-persons-outside-saudi-arabia-covered-law-real-estate-ownership-non-saudis
AL-ZAHRANI, M., & Al-Eqtisadiah. (2026, January 7). Saudi banks race to woo foreign buyers as property ownership opens. Arabnews. https://www.arabnews.com/finance/saudi-banks-race-to-woo-foreign-buyers-as-property-ownership-opens-2628525