From Restriction to Opportunity: Saudi Arabia’s New Law Allowing Property Ownership by Non-Saudis

January 24 2026: Saudi Arabia, the largest country in the Middle East, has officially implemented a major policy shift allowing non-Saudis to own real estate under a unified and regulated framework. The Regulations on Real Estate Ownership by Non-Saudis came into effect on January 22, 2026, according to the Saudi Press Agency.

The regulations apply to a broad range of applicants, including residents of Saudi Arabia, non-resident individuals, foreign companies, investment funds, and diplomatic entities.

Good News for Rajasthan NRI Community

This legislation is expected to generate strong interest among Rajasthan’s NRI community, particularly from Udaipur, Jaipur, Jodhpur, and Kota, where thousands of residents work or run businesses in the Gulf region.

With Saudi Arabia hosting a large number of Rajasthani professionals, hospitality workers, traders, and construction entrepreneurs, the new law opens a direct pathway for long-term investment and settlement-linked assets in the Kingdom. Industry observers say the reform could benefit Udaipur-based families with members employed in Saudi Arabia, especially those holding valid Iqama permits, who can now apply directly through the Saudi Properties digital portal.

Real estate consultants in Rajasthan note that the move is particularly relevant for hotel operators, tour companies, marble exporters, and SME owners from Mewar and Marwar regions, many of whom already maintain strong business ties with Saudi cities like Riyadh and Jeddah.

Centralized Digital Application Process

Residents holding a valid Iqama (work permit) can apply directly through the Saudi Properties portal. Non-resident individuals must submit their applications via Saudi embassies in their home countries, which will issue a digital identity enabling applicants to continue the process online.Foreign companies or legal entities without a physical presence in Saudi Arabia are required to register first with the Ministry of Investment through the Invest Saudi Portal before

applying for property ownership.

When Was the Law Passed?

In July 2025, the Saudi Cabinet repealed earlier restrictions on foreign real estate ownership and approved a structured regulatory system aimed at attracting international investment. The new framework was published in the Official Gazette, followed by a six-month transition period. With the transition period now complete, the law is fully enforceable from January 22, 2026.

Who Can Buy Property in Saudi Arabia?

Under the new law, non-Saudis fall into three main categories:

• Individuals: Both residents and non-residents are eligible to acquire property.

• Foreign Companies and Legal Entities: Including investment funds and organizations, permitted to purchase property for residential, commercial, or industrial purposes.

• Diplomatic Missions: Allowed to own property based on reciprocity and regulatory approval.

Separate regulations will govern ownership in Riyadh, Jeddah, and the holy cities of Mecca and Medina. These will be issued as part of the “Geographical Areas for Ownership Document”, expected before March 31, 2026, according to Taiseer Al Mofarej, spokesperson for the Saudi Real Estate General Authority.

Ownership in Mecca and Medina will remain restricted to Saudi companies and Muslim individuals only.

Source: Compiled and Media Sources