Saudi Arabia has introduced groundbreaking changes to its real estate laws, allowing non-residents to own property starting in January 2026 through a digital identity system. This move, part of the Kingdom’s push to attract foreign investment, requires buyers to get a digital ID from the Absher platform, open a local bank account, and secure a Saudi contact number, aiming to boost economic growth under Vision 2030.
Key Details of the New Real Estate Law
The Non-Saudi Real Estate Ownership Law marks a major shift in how foreigners can invest in Saudi property. Approved by the Cabinet in July 2025, it opens up designated zones in cities like Riyadh and Jeddah for ownership, while keeping strict limits in holy sites such as Makkah and Madinah to protect cultural and religious values.
This law builds on earlier rules that let Gulf Cooperation Council nationals own land with some restrictions. Now, it extends to global investors, focusing on urban development and economic diversification. Experts say it could add billions to the real estate sector, which is already worth over $70 billion and growing fast due to projects like NEOM and other mega-developments.
Officials expect the changes to make transactions quicker and safer. The General Real Estate Authority will oversee the process, working with other agencies to ensure smooth rollout.
Requirements for Non-Resident Buyers
To buy property under the new rules, non-residents must meet specific steps. This starts with applying for a digital ID through Absher, the government’s online portal managed by the Interior Ministry.
Here are the main requirements:
- Obtain a digital ID from Absher, which verifies identity and links to government services.
- Open an account with a Saudi bank to handle payments and prove financial stability.
- Get a local Saudi phone number for official communications and updates.
- Choose properties only in approved zones, with applications reviewed by the Real Estate General Authority.
These steps aim to prevent fraud and integrate foreign owners into the local system. The process is designed to be digital-first, cutting down on paperwork and speeding up approvals. For many, this means they can start the process from abroad without needing to visit right away.
Once approved, buyers can own residential or commercial properties for personal use or investment. However, they must follow local laws on usage and cannot rent out holy site properties without special permits.
The government has already issued over 28 million digital IDs to citizens and residents, showing the system’s reliability. This expansion to non-residents is a natural next step.
Economic Impact and Market Growth
Saudi Arabia’s real estate market is set for a boom with these changes. Analysts predict a 10 to 15 percent rise in property prices in key cities like Riyadh, where villa prices jumped 15 percent in the second quarter of 2025 alone.
This law ties into broader trends, such as rising demand for apartments and planned communities. Foreign investment could pump fresh capital into the sector, helping the Kingdom reach its goal of a $1.5 trillion real estate market by 2030.
| Key Market Indicators | Current Value (2025) | Projected by 2030 |
|---|---|---|
| Real Estate Sector Value | $72 billion | $1.5 trillion |
| Annual Growth Rate | 8-12% | 10-15% |
| Foreign Investment Inflow | $5 billion (estimated) | $20 billion+ |
| Home Ownership Rate | 63% | 70% |
The table above highlights how the sector is evolving. With more foreigners buying in, developers are ramping up projects to meet demand. This could create jobs and support small businesses tied to construction and services.
On the flip side, some worry about affordability for locals. The government plans to monitor prices and introduce measures to keep housing accessible.
Ties to Vision 2030 and Digital Push
Vision 2030, Saudi Arabia’s plan to diversify beyond oil, drives these reforms. By easing property rules, the Kingdom aims to draw in global talent and capital, much like recent partnerships with tech firms for digital solutions.
The digital ID system fits into this by modernizing services. For example, the government teamed up with international experts earlier in 2025 to enhance mobile identity tools, similar to programs in Europe. This not only helps real estate but also boosts sectors like tourism and finance.
Unemployment among Saudis has dropped to 6.3 percent, beating targets, and female workforce participation hit 36 percent. These gains show Vision 2030’s progress, with property reforms adding another layer to economic stability.
Potential Challenges Ahead
While exciting, the new law brings hurdles. Non-residents might face delays in getting digital IDs if systems overload during the initial rollout in January 2026.
Cultural sensitivities remain a focus, especially near religious sites. Violations could lead to fines or loss of ownership rights, so buyers need to stay informed.
Experts advise consulting local advisors to navigate rules. The government has set up oversight committees to handle disputes and ensure fair play.
Despite these issues, the overall mood is positive. Recent social media buzz shows investors eager to explore opportunities, with posts highlighting quick transaction times and investment returns.
Looking Forward to 2026 and Beyond
As January 2026 approaches, Saudi Arabia positions itself as a hub for international real estate. This could inspire similar moves in neighboring countries, reshaping the region’s investment landscape.
With the market maturing, early adopters stand to gain from rising values and rental yields. The blend of tradition and innovation under Vision 2030 makes this a story to watch.
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