Saudi property ownership rules for foreign Muslims (2026 law explained)

Saudi Arabia’s new ownership law replaced the old restrictive regime in January 2026. These are the rules that matter for Muslim buyers abroad.

The core principles

• Zones only: non-Saudis may acquire property rights only inside geographic zones approved by the Council of Ministers (approved June 2026).
• Muslims only in the Holy Cities: in Makkah and Madinah, individual ownership is reserved for Muslims, resident or abroad. Non-Muslims are excluded even within designated zones.
• No foreign companies in the Holy Cities: companies incorporated outside the Kingdom cannot own in Makkah or Madinah.
• One official channel: eligibility, application and approval run through REGA’s Saudi Properties portal.

What it costs

The 5% Real Estate Transaction Tax applies, plus a transfer fee of up to 5% on non-Saudi transactions, a combined government burden of up to about 10%, allocation negotiable between buyer and seller.

Alternatives where freehold isn’t available

Outside the designated zones, long-term leases and investment via listed Saudi real estate vehicles remain routes to exposure, including for the Holy Cities.

Why the current position matters

The executive regulations and zone documents are new and will evolve. Verify against the portal at the time of purchase. Verifying at the time of purchase, not at the time of reading, is the discipline that matters.