Saudi Arabia has made the historic announcement that foreigners would be allowed to acquire real estate in some parts of Jeddah as part of its Vision 2030 development plan. The legislation, which was approved on Tuesday, will significantly alter the kingdom’s economic and real estate policies when it takes effect in January 2026.
This long-awaited reform aligns with the government’s broader agenda to diversify the oil-dependent economy and boost both local and international investment in real estate. Previously, foreign ownership was heavily restricted, with exceptions only granted in limited cases. Now, with this opening, and Jeddah are poised to become regional hubs for global property buyers.
According to Saudi Arabia’s Real Estate General Authority, detailed guidelines will be released in the coming months outlining eligible zones, investment thresholds, and compliance requirements. It is important to note that ownership in Mecca and Medina, the two holiest cities in Islam, will still be subject to specific religious and legal conditions.
The announcement triggered a notable surge in Saudi real estate stocks, signaling market optimism. Analysts see this move as a response to the roaring success of Dubai’s property market, which has reached price levels comparable to New York City and London. A 2024 report by real estate firm Frank Knight revealed that transactions of properties valued at $10 million and above in Dubai now rival those of the world’s most iconic cities.
This policy change isn’t just about property ownership; it’s a calculated step in repositioning Saudi Arabia as a global investment and tourism hotspot. The initiative supports ongoing efforts to keep high-net-worth Saudis spending domestically while also attracting foreign capital for second homes, vacation properties, and long-term investments in and Jeddah.
Key examples of how the kingdom is changing its urban and coastal landscapes include the development of the massive cube-shaped Mukaab in downtown and upscale Red Sea resorts like the Ritz-Carlton Reserve. Even though there have been some hiccups, like as the futuristic metropolis of Neom’s plans being cut back, Jeddah’s development boom is still going strong.
Saudi officials hope that by liberalizing property laws, the kingdom can attract not only Western investors but also affluent individuals from the Global South, particularly high-net-worth Muslims. A 2024 Frank Knight report showed that 79% of wealthy Muslim respondents expressed interest in purchasing property in Mecca or Medina, with budgets exceeding $4 million.
While Dubai continues to lead the Gulf’s real estate surge, Saudi Arabia’s entry into the foreign ownership market positions and Jeddah as attractive alternatives. Unlike Dubai, which has already reached a mature stage in real estate development, Saudi Arabia presents fresh opportunities in relatively untapped luxury and mid-market segments.
By 2026, foreign investors will officially be able to own property in Riyadh and Jeddah, signaling a new era for the kingdom’s economy and global integration. This reform, part of the broader Vision 2030 plan, is not only a bold economic maneuver but also a cultural turning point that redefines Saudi Arabia’s global role in real estate and tourism. With the policy change expected to attract a wave of international interest, the coming years could see and Jeddah rival the world’s most prominent real estate destinations.
