With the introduction of the Property Law expanding foreign ownership rights, Saudi Arabia is committed to drawing high-quality capital to promote growth and innovation in its markets.
Allowing foreign investors to buy property in high-growth areas of Riyadh and Jeddah opens new local revenue opportunities for individuals and businesses.
New Property Legislation in Saudi Arabia: What’s Changing?
The new law, set to take effect next year, allows foreign investors – both individuals and companies – to acquire real estate in specific areas, as specified by the Real Estate General Authority.
Commercial Properties
For commercial real estate investments, foreign entities may acquire full ownership, provided that:
- The investment is development-focused.
- The project has a minimum capital threshold (currently SAR 30 million).
- Construction of the project is complete, and it will be operational within five years of the conclusion of the acquisition.
Residential Properties
For residential real estate investments, foreigners with a valid Iqama can own property, subject to the regulator’s approval.
How New Ownership Rules Laws Make Saudi Expansion and Relocation More Appealing
Recent regulatory changes will encourage business owners to prioritize investing in Saudi Arabia. Those who have been on the fence about making the move will now have more compelling reasons to not only expand but also establish deeper roots in the Kingdom.
Our 2025 Saudi Market Entry Report found that 65% of general managers (GMs) in our network reported a fairly satisfactory family relocation experience to Saudi Arabia last year, a significant increase from 35% in the prior year’s survey.
Property ownership instills a strong sense of security, belonging, and commitment to the country. Therefore, the new property regulations are likely to transform the relocation landscape in Saudi Arabia, making it more attractive for both foreign investors and businesses, who may now perceive property not just as mere accommodation but as a tool for value and wealth creation.
Our report also added that the UK and the US were the top locations for companies planning to expand to Saudi Arabia last year. With more global companies setting up shop in Saudi Arabia, expanding access to top-tier American and British schools is a fundamental pillar in the country’s broader strategy to position Riyadh as a globally sought-after destination for foreign expats and business owners to work and live.
For the millions of foreign expatriates who make up 41.6% of the Kingdom’s population, this creates new possibilities for financial growth and community integration. Enhanced access to property ownership places the Kingdom alongside Dubai, Singapore, and other major business hubs where foreign professionals can build equity while advancing their careers.
Ultimately, these regulatory improvements create a supportive ecosystem for deeper integration and greater equity participation.
Expanding Foreign Property Ownership Rights Shape Growth Across Key Sectors
By focusing on key cities, Riyadh and Jeddah, the 2026 regulations create an environment conducive to property construction, development, management, and financing. The benefits cascade through multiple sectors in ways that create B2B opportunities across the board. In effect, this opens up new addressable markets for global construction firms, property management companies, proptechs, and fintechs.
Typically, real estate investments require substantial capital. This trend indicates wider implications for global fintechs, prompting them to introduce Saudi-focused real estate products to facilitate access to capital.
Renowned as a springboard for financial innovations, Saudi Arabia has been an attractive expansion target for TeamSec. The fintech company recently expanded into the Kingdom with the aid of AstroLabs, and it’s now setting its sights on the property sector by rolling out residential mortgage-backed securities (RMBS) through its platform. Our network also features global property management companies like RayLabs and proptech firms, including Holo.
Besides real estate, the new regulations lay out the foundation for sustained and stabilized inflows of FDI to invest in the country’s essential projects across several economic sectors, including infrastructure, tourism, and hospitality. This is particularly relevant as the Kingdom targets attracting 150 million tourists annually by 2030 and increasing its GDP contribution to a little over 10%.
Real estate investments go hand in hand with infrastructure. As demand for homes and offices grows, so does the need for roads, tunnels, energy networks, and metro lines, making nearby properties more attractive to investors.
This connection makes Saudi Arabia a compelling draw for smart investments and a great fit for businesses with diversified project portfolios seeking steady, high returns.
The continued introduction of supportive policies and regulatory reforms like the New Property Law 2026 strengthens the Kingdom’s position as a viable choice for global business expansion and more diversified, strategic capital inflows. The economic and social impact typically touches almost every industry, leading to the creation of new growth areas with strong ROI potential.