Saudi Arabia to Allow Foreigners to Buy Property in Mecca and Medina from 2026

Saudi Arabia will allow foreign nationals to purchase property, including in Mecca and Medina, starting January 2026, under new regulations.

Saudi Arabia is close to completing regulations that would allow foreign nationals to buy property in the kingdom starting January 2026, including in the holy cities of Mecca and Medina. The move marks one of the most significant steps yet in Riyadh’s push to open its real estate market to international investors.

Bloomberg reported, citing Fahd bin Sulaiman of the General Real Estate Authority, that officials are still reviewing which specific zones in Riyadh, Jeddah, Mecca and Medina will be accessible to foreign buyers. He said the final list would be released alongside the new regulations.

According to the official, foreign ownership in designated zones may be capped between 70% and 90%, a limit aimed at balancing investment flows while retaining domestic control. The cap would vary depending on local market conditions and urban planning requirements.

Saudi Crown Prince Mohammed bin Salman has previously said that property buyers in Mecca and Medina must be Muslims, but added that they would not face other major restrictions once the rules are implemented. The condition reflects long-standing sensitivities surrounding the two cities, which host Islam’s holiest sites.

The kingdom approved sweeping changes to its property ownership law in July this year, part of a broader economic transformation plan seeking to diversify revenue sources and attract foreign capital. Authorities have said the reforms are key to boosting housing supply, modernising urban centres and supporting Vision 2030 development goals.

Saudi regulators have also eased barriers in the capital markets, allowing greater foreign participation. Further steps are expected soon, potentially enabling international investors to own shares in a wider set of Saudi companies.

The planned expansion of property rights is viewed by analysts as a test of investor confidence in the kingdom’s long-term economic direction. If implemented smoothly, the rules could trigger a surge of regional and global interest in Saudi real estate.

Still, questions remain over pricing, regulatory transparency and the pace of urban development. Investors will be watching how Riyadh manages these concerns as it prepares to open some of its most sensitive and strategically important areas to foreign ownership for the first time.

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