Riyadh, July 9, 2025 — In a historic shift poised to redefine the Kingdom’s real estate landscape, the Saudi Arabian government has approved a policy allowing foreign nationals and companies to own property—including in the holy cities of Makkah and Madinah—starting January 2026.
The decision was reached during a Cabinet meeting chaired by Crown Prince Mohammed bin Salman, as part of broader reforms under the country’s Vision 2030 economic diversification strategy. The reform signals Saudi Arabia’s drive to attract foreign direct investment and stimulate private sector growth, particularly in the real estate and tourism sectors.
Previously, property ownership in Makkah and Madinah was strictly limited to Saudi citizens, with only lease options available to foreigners. The new policy will now permit outright ownership, although specifics on eligibility, restrictions, and regulatory frameworks are expected to be published ahead of implementation.
Economic analysts believe the move will unlock massive foreign investment potential, especially given the global Muslim population’s interest in the holy cities for spiritual and commercial reasons. It also reflects the Kingdom’s ongoing effort to boost its non-oil revenue, expand urban development, and support the influx of pilgrims under the recently expanded Hajj and Umrah visa reforms.
This development is expected to reshape regional real estate dynamics and provide opportunities for international developers, diaspora investors, and tourism-related enterprises.
The Saudi government is expected to roll out detailed guidelines and licensing procedures before the January 2026 rollout.
