A new law allowing non-Saudis to own real estate in designated geographical areas—primarily in Riyadh and Jeddah—is expected to boost the real estate sector and attract foreign direct investment to increase housing supply. For the holy cities of Mecca and Medina, the law includes special provisions to regulate ownership.
The law is scheduled to come into effect in January 2026 and represents an expansion of the existing framework, which already allows citizens of the Gulf Cooperation Council (GCC) to own property for residential or investment purposes.
Real Estate Sector as a Growth Driver
In 2024, Saudi Arabia’s real estate sector more than doubled its contribution to GDP, rising from 5.9% in 2023 to 12%. This remarkable growth is attributed to the new legal framework and the implementation of over 20 new regulations aimed at building investor confidence.
According to CBRE Middle East, a total of 192 real estate development licenses were issued in 2024, while the construction sector recorded 3,800 new permits, marking a 59% increase in Q4 alone.
Foreign Investment in Mecca and Medina
One of the most notable developments is the opening of real estate investment opportunities in Mecca and Medina through publicly listed companies. This initiative is a key component of Vision 2030 and is designed to attract investors who wish to benefit from revenues generated by Hajj and Umrah pilgrims.
While the maximum foreign ownership in companies linked to Hajj services remains at 49%, investors can participate via the Tadawul stock exchange or through convertible instruments. More than 130 foreign investment licenses have already been granted, highlighting growing international investor confidence in the Kingdom.
Premium Residency – Saudi Arabia’s 'Green Card'
The Premium Residency Program is a special residence permit that allows foreign nationals to live, work, and own property in Saudi Arabia. It is designed to attract skilled professionals, entrepreneurs, and investors.
Launched in 2019, the program was expanded in 2024 with the introduction of five new categories, covering property owners, talented professionals, and investors. Dubbed the "Saudi Green Card," this initiative is a strategic tool to support the growth of the non-oil economy, a cornerstone of Vision 2030, and has already drawn significant international interest.
