Saudi Arabia 2026 Foreign Property Ownership: New Law, Premium Residency & GCC Real Estate Syndication Through UAE Structures

Saudi Arabia Opens Real Estate to Foreign Investors

Saudi Arabia's new Law of Real Estate Ownership by Non-Saudis is replacing the restrictive 2000 framework with a structured system allowing foreign individuals and companies to own property in designated zones across the Kingdom. This represents the most significant shift in Saudi real estate policy in decades, aligning with Vision 2030's goals of attracting foreign capital and expanding housing supply.

The reform arrives as Saudi real estate transactions increased 38% in the first half of 2024, with rapid growth expected in the next couple of years. Real estate and construction now contribute approximately 12% to Saudi GDP, double their 5.9% share in 2023. The Kingdom's development pipeline exceeds USD 440 billion in committed projects, with a longer-term pipeline valued at USD 1.55 trillion.

For foreign investors, the new law creates direct ownership pathways, while the Premium Residency program offers indefinite residency linked to property investment. This guide covers the new ownership framework, designated zones, Premium Residency qualification, registration requirements, and how to structure GCC real estate holdings through UAE-based SPVs and foundations.

The 2026 Foreign Ownership Law

The new law defines 'Non-Saudi' broadly to include individuals without Saudi nationality (residents and non-residents), foreign-incorporated companies, and foreign non-profit entities. The Council of Ministers retains authority to expand this definition as needed.

Who Can Buy Property

Foreign Residents: Non-Saudi individuals legally residing in the Kingdom may own properties within designated zones and one residential property for personal use outside designated zones (excluding Makkah and Madinah).

Non-Residents: Foreign individuals without Saudi residency may own property only within designated zones once these are formally announced by the Real Estate General Authority (REGA).

Foreign Companies and Investment Funds: Listed and unlisted foreign companies, licensed investment funds, and special purpose vehicles may acquire real estate necessary for business activities and employee housing, subject to Saudi Capital Market Authority regulations.

Saudi Companies with Foreign Shareholders: Companies incorporated under Saudi Companies Law with foreign ownership are not classified as Non-Saudis. These entities may own property within designated zones, including Makkah and Madinah, and acquire real estate for business purposes both inside and outside designated zones.

What Can Be Purchased

Foreign investors may acquire residential property, commercial land, industrial property, agricultural farms, shares in mega-projects (NEOM, Qiddiya, Red Sea Global), and tokenized fractional ownership stakes in real estate. The law explicitly recognizes digital fractional ownership as an official investment category, allowing remote investment without visiting the Kingdom.

Makkah and Madinah Restrictions

Ownership in the two holy cities remains highly restricted. Foreigners are generally prohibited from owning property in Makkah and Madinah, with narrow exceptions for Muslims in limited cases such as inheritance or recognized religious endowments (waqf). Muslim resident expatriates may now purchase property within designated zones in these cities, subject to specific conditions to be detailed in implementing regulations.

Designated Freehold Zones

The new law adopts a designated-zone model. REGA, in coordination with the Council of Ministers, will publish official maps identifying specific geographic zones where foreign ownership is permitted. These zones will prioritize high-demand urban areas with established infrastructure.

Expected Designated Areas

Riyadh: Diplomatic Quarter, King Abdullah Financial District, Al Olaya commercial area, Al Malqa residential district, New Murabba development zones.

Jeddah: Corniche commercial district, Al Zahra business quarter, premium coastal residential zones, designated mixed-use developments.

Special Economic Zones and Mega-Projects: NEOM (100% foreign ownership), Red Sea Project coastal developments, King Abdullah Economic City, Diriyah, Qiddiya, Amaala, and other Vision 2030 giga-projects. These operate with customized legal regimes and streamlined administrative procedures.

Eastern Province: Selected districts in Dammam, Al Khobar, and surrounding areas.

Investment Performance by Zone Type

Freehold properties in Riyadh and Jeddah experienced considerable annual appreciation during 2024-2025, driven by limited supply and increasing foreign demand. Prime areas like King Abdullah Financial District and Jeddah's Corniche have received interest from foreign developers since foreign ownership announcements.

Premium Residency Through Property Investment

The Real Estate Owner Residency category within Saudi Arabia's Premium Residency program allows foreign property investors to obtain long-term residency linked directly to property ownership. This program has gained renewed relevance now that the foreign ownership law has taken effect.

Qualification Requirements

Minimum Property Value: SAR 4 million (approximately USD 1.07 million).

Property Type: Residential property only. Commercial and industrial properties do not qualify.

Property Status: Must be fully developed and habitable. Undeveloped land, construction sites, and off-plan properties do not qualify. However, residency can be applied for once off-plan properties are completed and ready for occupancy.

Mortgage Status: Property must be free from any current or future mortgages or liens.

Valuation: Property must be appraised by an accredited valuer registered with the Saudi Authority for Accredited Valuers (Taqeem) to confirm it meets the minimum value threshold.

Residency Benefits

Duration: Residency remains valid as long as the qualifying property is owned and continues to meet eligibility criteria. No annual renewal required.

Family Coverage: Spouse, children under 25, and parents may be included.

Travel Freedom: Enter and exit Saudi Arabia freely without additional visas.

Work Rights: Work in the private sector and move between employers without sponsorship. Same rights extend to eligible family members.

Business Rights: Conduct business activities in accordance with Saudi Investment Law.

Fee Exemptions: Exempt from expatriate levies normally imposed on foreign workers and their dependents.

Property Sale and Residency

If the qualifying property is sold without purchasing another property of equal approved value within 90 days, the Real Estate Owner Residency becomes invalid. Investors planning to sell should secure replacement property before completing the transaction to maintain residency status.

Property Registration Process

All real estate purchases by non-Saudis must be registered with REGA and recorded in the national Real Estate Registry. A transaction is not legally valid until proper registration is completed.

Transaction Fees

Real Estate Transfer Fee: Up to 5% of property value on disposals by non-Saudis. This is in addition to, not instead of, the 5% Real Estate Transaction Tax (RETT) already applicable to land transactions. Combined fees may therefore reach 10% on property transfers involving non-Saudis.

Commercial Investment Requirements

For commercial real estate investments, foreign entities may acquire full ownership provided that construction is completed and the project is operational within five years from acquisition. These provisions ensure foreign investment contributes to urban development rather than speculation.

Beyond the Kingdom: Structuring GCC Real Estate Through UAE Entities

For investors seeking to establish a GCC-wide real estate portfolio to capture further regional integration and growth, the introduction of foreign ownership in designated zones in Saudi Arabia is certainly advantageous. Heres how it fits into a bigger GCC-focus;

Foreign investors acquiring property across Saudi Arabia, UAE, and other GCC markets increasingly structure holdings through UAE-based Special Purpose Vehicles (SPVs), holding companies, and foundations. These structures provide asset protection, succession planning, and operational flexibility across multiple jurisdictions. UAE holding structures, especially in the financial free zones of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), and Ras Al Khaimah International Corporate Centre (RAKICC), are arguably the best structures for international investors. We've covered SPV and other UAE holding structures extensively in our previous articles on SPV formation for real estate holdings, and comparing the various UAE offshore company structures.

Why UAE Holding Structures for GCC Real Estate Portfolios

Common Law Framework: The UAE has two free zones that operate under English common law. Both DIFC and ADGM operate under English common law with independent courts staffed by judges from common-law jurisdictions. Contracts and shareholder agreements carry the same reliability as those in London or Singapore, with international enforceability. RAKICC allows dispute resolution between DIFC and ADGM for its corporate structures, offering flexibility for shareholders.

100% Foreign Ownership: DIFC and ADGM permit full foreign ownership without local partner requirements. Shares can be transferred freely without UAE national involvement under most circumstances.

Liability Isolation: Assets held in one SPV are insulated from liabilities in other ventures. Each property or project can be ring-fenced separately.

Succession Planning: Property can be transferred between generations by selling or passing on SPV shares rather than re-registering the property, avoiding most property transfer fees and probate complications. Each jurisdiction has different conditions for succession planning, and proactive coordination is essential.

Share Transfer Flexibility: Ownership changes are executed through share sales rather than property transfers, reducing transaction costs and timelines.

Syndication Structures

UAE structures enable investor groups to pool capital for GCC real estate acquisitions. Rather than navigating joint ownership agreements across multiple jurisdictions, investors contribute capital to a single SPV, which acquires and holds the property. This structure is common among private syndicates, family offices, and boutique real estate funds targeting high-value assets across Saudi Arabia, UAE, Bahrain, Oman, and Qatar.

Shareholder agreements govern each investor's rights and obligations under DIFC or ADGM law, providing clear enforcement mechanisms. The structure allows investors to enter and exit by selling shares rather than restructuring property ownership, simplifying liquidity management in syndicated deals.

Foundation Structures for Family Wealth

DIFC, ADGM, and RAKICC foundations serve as apex holding structures for multi-generational wealth planning. A foundation can own multiple SPVs, each holding separate properties or investments across GCC jurisdictions. This creates layered protection with clear governance frameworks.

UAE foundations protect assets by ring-fencing liability providing clear succession planning, and are recognized in most common law and civil law jurisdictions. Families with existing trust structures elsewhere may use DIFC and ADGM trusts (modeled on Jersey or Cayman frameworks) to hold MENA-region assets within familiar legal frameworks.

Opportunistic Investment Areas in the GCC

With designated zones expected to focus on established infrastructure, certain areas offer timing advantages for foreign investors:

Saudi Arabia: NEOM developments (The Line, Oxagon, Trojena), Red Sea coastal projects, Diriyah heritage district, Qiddiya entertainment zone. Early investments in these flagship projects show massive value appreciation as development progresses. King Abdullah Financial District in Riyadh shows Grade A office rents up 10% year-on-year with 98% occupancy.

UAE: Dubai Marina, Palm Jumeirah, Downtown Dubai, Business Bay, Dubai Hills Estate, Jumeirah Village Circle. Abu Dhabi freehold zones include Saadiyat Island, Yas Island, Al Reem Island, and Al Raha Beach.

Bahrain: Amwaj Islands, Durrat Al Bahrain, Reef Island, Bahrain Bay, Dilmunia Island offer freehold ownership to foreign nationals.

Oman: Integrated Tourism Complexes (ITCs) including The Wave Muscat, Muscat Hills, Jebel Sifah, Salalah Beach, and Hawana Salalah permit freehold foreign ownership.

A UAE-based holding structure can seamlessly consolidate ownership across these GCC freehold areas, providing unified governance, consolidated reporting, and streamlined succession planning regardless of where individual properties are located. All of the aforementioned countries have residency by investment schemes potential investors could benefit from or see as attractive.

How We Support GCC Real Estate Investment

Our team advises foreign investors on Saudi property acquisition under the new 2026 law, Premium Residency qualification through property investment, and structuring GCC real estate portfolios through SPVs, holding companies, and foundations.

For syndicated acquisitions, we establish SPV structures, advise on shareholder agreement clauses, and coordinate with property registration authorities across Saudi Arabia, UAE, and the rest of the GCC.

Contact Gravity Power Management Consultancies to discuss your GCC real estate investment strategy and determine the optimal structure for your objectives.

Article Written By:

Martin Kocher,

Investment Structuring Expert

Dubai, United Arab Emirates

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Disclaimer: Thank you for reading our article! This content is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult qualified professionals for guidance specific to your situation.