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Saudi Arabia Names Its Foreign Ownership Zones
Saudi Arabia has answered the question every foreign buyer has been asking since January: where exactly can non-Saudis buy? On 23 June 2026 the Council of Ministers approved the executive regulations for the Law of Real Estate Ownership by Non-Saudis and endorsed the accompanying Geographic Zones Document, which names the specific areas open to foreign ownership.
The headline for investors is that the list is more generous than expected in Jeddah and tightly focused on the giga-projects in Riyadh.
The Riyadh zones
Riyadh received nine designated zones, and the selection tells you a great deal about intent. These are not general districts. They are the capital’s flagship developments:
- Qiddiya
- New Murabba
- Diriyah Gate
- King Salman Park
- King Abdullah Financial District (KAFD)
- SEDRA
- Sports Boulevard and the arts district
- King Salman International Airport
- A transit-oriented development site
Two of those will be familiar if you have been reading our project coverage: SEDRA, the 30,000-home community in north Riyadh, and Diriyah, the heritage district where residential handovers begin later this year. Both are now confirmed as places a non-Saudi can buy.
The pattern is deliberate. Riyadh is channelling foreign capital into the projects that need it, rather than opening the existing housing stock that Saudi families are buying.
Jeddah is the open one
Where Riyadh named nine zones, Jeddah received the city centre plus roughly 55 further development zones, including Jeddah Central. That is an order of magnitude more coverage, and it materially changes the comparison between the two cities for an international buyer.
If your priority is choice of location rather than a specific flagship project, Jeddah is now the more accessible major market.
Makkah and Madinah
Both holy cities have their own defined zones under the framework, with 11 named areas in Makkah and nine in Madinah, including established developments such as Jabal Omar, Masar, Rua Al Madinah and Knowledge Economic City.
Corporate participation there is restricted rather than open: non-Saudi companies incorporated outside the Kingdom and non-Saudi non-profit entities are excluded, and a Saudi company holding property in these cities cannot exceed 49% non-Saudi ownership overall, with no individual non-Saudi shareholder above 5%. Investment funds and special purpose vehicles are treated differently again.
What each type of buyer gets
| Buyer | What is permitted |
|---|---|
| Iqama holder (resident) | Property within the zones, plus one residential property outside the zones in any city except Makkah and Madinah |
| Premium Residency holder | The same access as an iqama holder |
| Non-resident non-Saudi | Within the designated zones only |
| GCC national | The broadest individual access, including outside the zones, except in the holy cities |
Non-residents have a short prerequisite list before they can transact: a digital identity issued via a Saudi embassy or consulate, a Saudi bank account, and a Saudi contact number. Applications, payment and title issuance now run through a central digital platform, replacing the old case-by-case approval process. That is a quiet but significant change: the bottleneck used to be discretion, and now it is paperwork.
The cost that changed
The regulations introduce a disposal fee of up to 5% when a non-Saudi transfers property. Set against the existing 5% Real Estate Transaction Tax, a foreign owner buying and later selling should plan for roughly 10% of value in transfer costs across the full cycle, before agency commission and registry charges.
That is worth modelling before you buy rather than discovering at exit. Our breakdown of the real cost of buying property covers the rest of the line items. For a short hold, 10% is a meaningful hurdle. For a long hold in a growth market, it is closer to a rounding error, and the framework is plainly designed with the second buyer in mind.
What this means in practice
The zone list converts a general permission into a specific shopping list. Before this document, a foreign buyer could know they were allowed to buy somewhere without knowing where. Now the answer is public.
Three practical consequences:
- Verification got easier. You can check a project’s zone eligibility against a named list rather than relying on a developer’s assurance.
- Riyadh means giga-projects. If you want the capital, you are buying into one of nine flagship developments, which are also the most heavily marketed and highest-specification schemes in the Kingdom.
- The fee changes the maths on flipping. Around 10% across a cycle rewards holding. Model your exit before your entry.
Everything else about the purchase process is unchanged, including the escrow protections that apply to licensed off-plan projects. See how Wafi escrow works and our step-by-step off-plan buying guide for the full sequence, and the 2026 ownership rules for the wider framework.
Zone designations and fees can be amended. Verify current status with the Real Estate General Authority before committing funds, and treat this as information rather than legal advice.
References
Details in this article are drawn from official Saudi regulatory sources (REGA, Council of Ministers announcements), current as of August 2026.
Frequently Asked Questions
Which areas of Riyadh can foreigners buy property in?
Nine designated zones were approved for Riyadh: Qiddiya, New Murabba, Diriyah Gate, King Salman Park, King Abdullah Financial District, SEDRA, the Sports Boulevard and arts district, King Salman International Airport, and a transit-oriented development site. Ownership outside these zones follows separate rules.
How many zones are open in Jeddah?
Jeddah received far broader coverage than Riyadh, with the city centre plus around 55 further development zones, including Jeddah Central. In practice that makes Jeddah the most accessible of the major cities for foreign buyers.
What is the new disposal fee for non-Saudis?
The executive regulations introduce a disposal fee of up to 5% applying when a non-Saudi transfers real estate. Combined with the existing 5% Real Estate Transaction Tax, a foreign owner should budget for roughly 10% of value across a purchase-and-resale cycle, before agency and registry costs.
Can non-resident foreigners buy without living in Saudi Arabia?
Yes, within the designated zones. Non-residents need three things in place first: a digital identity issued through a Saudi embassy or consulate, a Saudi bank account, and a Saudi contact number. Applications run through the central digital platform rather than case-by-case approvals.