Last updated: June 27, 2026

Saudi Arabia Property Law for Foreigners — 2026 Guide

Who can legally own property in Saudi Arabia? Full breakdown: REGA zones, Mecca & Medina rules, what changed in 2026, and the approval process for non-Saudi buyers.

Non-Resident · Key points for your situation

› Power of attorney required if you can't attend the notary in person

› Saudi bank mortgages not available to non-residents — plan for a cash purchase

› REGA approval typically required before title transfer — allow 2–4 extra weeks

› Budget 7–10% above the purchase price for total transaction costs

Iqama Holder · Key points for your situation

› Your Iqama is accepted across all government systems — Absher, REGA, Ministry of Justice

› Attend the notary in person — no power of attorney needed

› Mortgage may be available from select Saudi banks — typically up to 70% LTV

› Ensure your Iqama has at least 12 months validity before starting

The Core Legal Framework

Foreign property ownership in Saudi Arabia is governed by:

Royal Decree M/34 (2021) — the primary legislation opening foreign ownership
REGA Implementing Regulations — detail which zones are designated and approval conditions
The Basic Law of Governance — provides the constitutional basis for Mecca/Medina restrictions
2024 Amendments — expanded designated zone list and clarified non-resident eligibility

The law permits foreigners to own real property (not just usufruct/lease rights) in Saudi Arabia within designated zones for the first time in the Kingdom’s modern history.

The Designated Zone System

Foreign ownership is not permitted nationwide — it applies only within REGA-designated zones. Think of these as approved geographic areas where foreign purchase is enabled.

Key facts about designated zones:

On June 23, 2026, the Saudi Cabinet approved the full Geographic Zones Document — the complete zone map is now public at saudiproperties.rega.gov.sa/zones
Jeddah has 57 designated zones, Riyadh has 9, Al-Ula has 17, Makkah has 12 (Muslim only), Medina has 10 (Muslim only)
Mecca and Medina are excluded for non-Muslim buyers (see below)
NEOM, AMAALA, and the Red Sea Project are confirmed giga-project zones

Who Can Own

Buyer Category	Permitted?	Conditions
Foreign individual (non-resident)	✅ Yes	Within designated zones; may require REGA approval
Foreign individual (Iqama holder)	✅ Yes	Within designated zones; Iqama must be valid
Muslim foreigner (any residence)	✅ Yes	Including Mecca and Medina
Non-Muslim foreigner	✅ Yes	All cities except Mecca and Medina
Foreign company (Saudi-registered)	✅ Yes	For business purposes; commercial registration required
Foreign company (no Saudi presence)	⚠️ Limited	Additional requirements; verify with REGA

The Mecca and Medina Exception

Ownership of property in Mecca (Makkah Al-Mukarramah) and Medina (Al-Madinah Al-Munawwarah) is restricted to Muslims only. This is not a new rule — it predates the 2021 law and is grounded in the Basic Law’s provisions on the two holy cities.

The restriction applies regardless of:

Residency status (resident or non-resident)
Nationality (no nationality-based exemption)
Marriage to a Muslim (non-Muslim spouses cannot inherit or co-own)

Property Types Available to Foreigners

Property Type	Permitted for Foreigners?
Residential apartment	✅ Yes
Villa / house	✅ Yes
Commercial unit	✅ Yes (with conditions)
Off-plan (under construction)	✅ Yes (REGA-licensed developer required)
Agricultural land	❌ No
Land near military zones	❌ No
Undeveloped land (in most cases)	⚠️ Restricted — verify per zone

Approval Requirements

Not every purchase requires explicit REGA approval — for many standard residential transactions in clearly designated zones, the transfer can proceed directly. However, REGA approval may be required for:

Non-resident buyers in certain zones
Larger or commercial transactions
Land (as opposed to built properties)
Buyers from certain nationalities

Your lawyer or REGA’s online portal (rega.gov.sa) will clarify the requirement for your specific transaction.

The 2024 Amendments: What Changed

The 2024 amendments to the implementing regulations:

Expanded the list of designated zones in several cities
Clarified the process for non-resident (non-Iqama) buyers
Introduced clearer requirements for off-plan developer licensing
Strengthened escrow protection for off-plan buyers

Staying Updated

Saudi property law is still evolving. REGA publishes updates at rega.gov.sa. The Saudi Official Gazette (Umm Al-Qura) at uqn.gov.sa publishes all royal decrees and ministerial decisions — the primary legal source.

This page is reviewed monthly. Subscribe to our newsletter to be notified when significant changes occur.

Frequently Asked Questions

When did Saudi Arabia allow foreigners to own property? +

Saudi Arabia's Real Estate Law permitting broader foreign ownership was enacted in 2021. Prior to this, foreign ownership was heavily restricted. The law was further amended in 2024 to expand designated zones and clarify eligibility conditions.

What is REGA? +

REGA stands for Real Estate General Authority (هيئة العقارات). It is the Saudi government body responsible for regulating the real estate sector, licensing agents and developers, publishing designated zones for foreign ownership, and processing foreign ownership approvals.

Are there nationalities that cannot buy property in Saudi Arabia? +

The law does not explicitly list prohibited nationalities for most purchases. However, practical restrictions may apply based on Saudi diplomatic relations. Israeli nationals, for instance, face restrictions. Citizens of countries with whom Saudi Arabia has no diplomatic relations may face additional hurdles. Verify your specific nationality with a Saudi lawyer.

Can a foreign company buy property in Saudi Arabia? +

Yes, foreign companies with a valid Commercial Registration in Saudi Arabia can own property for business purposes. A foreign company without Saudi presence faces additional requirements. The rules vary by sector and property type.

What is the punishment for circumventing the ownership rules? +

Any transaction designed to circumvent the foreign ownership rules (e.g., using a Saudi national as a front owner, misrepresenting religious affiliation in Mecca/Medina) is void and may result in criminal prosecution, property confiscation, and deportation for non-Saudi parties.

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