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Saudi Arabia has officially opened a new chapter in its real estate sector. As of 21 January 2026, the long-anticipated Foreign Property Ownership Law is now in force — representing a pivotal change in the Kingdom's legal framework for international investors.
This reform is a key component of Vision 2030. Vision 2030 seeks to diversify the national economy, attract global capital and introduce regulatory reforms. At the same time, it aims to protect national interests.
What's Changing — and Why It Matters
With the law now in force, foreign individuals and foreign-owned entities are officially permitted to own real estate in Saudi Arabia. This is subject to the conditions set out in the implementing regulations accompanying the new legal framework.
The new framework is expected to:
- Define eligible property types, eligible investment zones;
- Clarify ownership structures allowed for foreign investors;
- Describe the approval process and sector-specific restrictions, if any.
These changes are especially relevant in the case of:
- Institutional investors looking to invest in the long term in Saudi real estate;
- International businesses interested in opening or expanding physical activities;
- High Net Worth Individuals looking for residential or strategic investment properties
A Key Moment for the Saudi Property Market
The entry into force of this law reflects Saudi Arabia's aim to continue to incorporate global investment in the real estate sector. At the same time, the country seeks to retain structured oversight in line with its development goals.
Further guidance through implementing regulations and official circulars is expected to continue shaping how the law is applied in practice.
AHYSP Law Firm remains available to assist clients at every stage of this process. This includes everything from initial legal assessment to transaction structuring and ongoing compliance under Saudi Arabia's foreign property ownership regime.
Key Takeaways
- Saudi Arabia has implemented the Foreign Property Ownership Law as of January 21, 2026, allowing foreign investors to own real estate.
- This law is part of Vision 2030, aiming to diversify the economy and attract global capital.
- Foreign individuals and entities can now own real estate, under specific conditions and regulations outlined in the new legal framework.
- The law defines eligible property types and investment zones, as well as ownership structures and processes for foreign investors.
- AHYSP Law Firm offers assistance with legal assessments, transaction structuring, and compliance regarding the new foreign property ownership regime.
Saudi Arabia's Foreign Property Ownership Law To Take Effect On 21 January 2026
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