Saudi Arabia will implement a new law starting January 28, 2026, granting lifetime residency to foreigners who purchase property worth at least SAR 4 million (approximately $1 million). The law allows full freehold ownership of real estate in designated areas such as Riyadh, Jeddah, and other select cities, with special ownership restrictions in Makkah and Madinah.
Residency Conditions and Property Requirements
To qualify for lifetime residency, the property must be completed, mortgage-free, and assessed by accredited Saudi valuers. Off-plan properties do not qualify for residency until fully completed. Residency remains valid as long as the owner holds the property, regardless of occupation or presence in the country.
Vision 2030 and Economic Diversification
This landmark legal reform is part of Saudi Arabia’s Vision 2030 initiative aimed at boosting foreign investment and diversifying the economy away from oil dependence. Opening up real estate ownership to foreigners signals a major shift in policy, aiming to attract affluent international buyers and investors.
Areas Covered Under the New Law
In addition to Riyadh and Jeddah, the new property rights extend to giga-projects including Diriyah and Neom, as well as cities like Dammam and Al Khobar. These areas are targeted for foreign investment and development under the expanding real estate market.
Early Sales and Market Impact
Dar Global CEO Ziad El Chaar confirmed that property sales have already begun ahead of the law’s implementation. Early buyers, mainly long-term GCC expatriates from countries such as India, Pakistan, Bangladesh, and Egypt, have benefitted from a roughly 10% price advantage on off-plan properties. These projects are expected to be delivered within three years.
Comparison to Dubai’s Property Boom
The new law has been likened to Dubai’s early 2000s freehold property laws that triggered significant foreign investment. Experts predict a similar boost for Saudi Arabia’s real estate sector, which currently accounts for 6.5% of GDP but could grow to 10% within three years due to increased foreign participation.
Expected Investor Benefits and Market Growth
The lifetime residency linked to real estate ownership offers stability and long-term security to foreign investors. It is expected to drive the launch of high-margin, luxury projects targeted at international buyers, further stimulating the Saudi real estate market.
Image by apriltan18 from Pixabay
