UAE Residents Can Now Buy Property in Saudi Arabia: 2026 Law Explained
A landmark change in Saudi real estate takes effect this month. Starting January 2026, foreign nationals—including UAE citizens and expatriates—can legally purchase property in the Kingdom under the new Law on Real Estate Ownership by Non-Saudis. This historic move is a key pillar of Saudi Vision 2030, aimed at diversifying the economy and attracting global investment.
Who Is Eligible to Buy?
The law opens ownership to several categories:
Foreign individuals (including UAE residents)
Foreign companies and investors
Saudi companies with foreign shareholders
Non-profit organizations and diplomatic missions
Eligible buyers can acquire residential, commercial, and industrial properties in officially designated zones.
Where Can You Buy? Key Locations and Restrictions
Ownership is permitted in designated zones approved by the Saudi Cabinet and the Real Estate General Authority (REGA). Major cities like Riyadh and Jeddah are expected to be included initially, with more areas to follow.
Important restrictions remain:
Ownership in the holy cities of Makkah and Madinah is still highly restricted, often limited to individual Muslims or corporate entities for operational use.
Outside restricted zones, foreign individuals can typically own one residential property for personal use, with the ability to hold more through corporate structures.
Costs, Fees, and Critical Compliance
Prospective buyers must be aware of the financial and regulatory framework:
Fees & Taxes: Combined transaction fees and taxes can reach approximately 10%.
Registration:Â All foreign-owned properties must be fully registered in the national real estate registry.
Penalties: Non-compliance can result in fines up to SAR 10 million and even forced property sale.
Comparison with the UAE Market
While similar in principle to the UAE’s freehold model, Saudi Arabia’s new system is more structured and regulatory-focused, especially in its early implementation. Buyers should expect a stronger emphasis on approvals and compliance compared to the more established UAE market.
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What This Means for UAE Investors
This reform unlocks significant cross-Gulf investment opportunities. For UAE residents, it presents a new avenue to diversify portfolios into one of the region’s largest and fastest-growing economies.
Key advice for potential buyers:
Conduct thorough due diligence.
Stay updated on official zoning maps and regulations from REGA.
Understand financing options, tax implications, and resale rules.
As the law rolls out throughout 2026, this marks the beginning of a transformative chapter in Saudi real estate, offering unprecedented access for international investors aligned with the Kingdom’s ambitious economic vision.
