Saudi Arabia Bans Non-Muslims from Owning in Makkah and Madinah

Report by “Safarti Tarjuman” International News Desk

RIYADH — Saudi Arabia has approved new property ownership laws allowing foreign nationals and companies to invest in real estate across the Kingdom. However, strict religious regulations will continue to prohibit non-Muslims from owning property in Makkah and Madinah, Islam’s two holiest cities.

Starting January 1, 2026, the revised property ownership framework will permit non-Saudis to purchase real estate in Riyadh, Jeddah, and other designated urban areas—provided they meet specific eligibility and regulatory conditions.

Under the new law, international investors—including individual foreigners, foreign companies, nonprofit entities, and diplomatic missions—will be allowed to own residential and commercial property in major Saudi cities.

Key provisions include:

• A capped 5% transaction fee on the property’s value
• Approval from the Ministry of Investment
• Compliance with regulations set by the General Real Estate Authority

Saudi Arabia aims to attract long-term foreign investment, stimulate urban development, and diversify its economy beyond oil revenues.

The legislation maintains a firm restriction on real estate transactions in Makkah and Madinah, where ownership will remain exclusive to Muslim individuals and Saudi-registered companies with Muslim-majority shareholding.

Ownership or usufruct rights will be permitted only within designated zones that are yet to be defined by an upcoming Geographic Scope Document issued by the Real Estate General Authority. The authority will also publish detailed property categories, contract durations, and transaction processes.

This measure aims to preserve the religious sanctity and spiritual identity of the two cities, which hold unparalleled significance for Muslims worldwide.

Eligibility Criteria & Compliance Framework

Foreign property buyers must:

• Secure clearance from the Ministry of Investment
• Provide valid residency or investment documentation
• Operate under a licensed foreign business, nonprofit, or diplomatic entity
• Adhere to the national framework for contract types and land use

A public consultation period will precede the official release of eligible zones via the Istitlaa digital platform, ensuring transparency and local engagement.

The new policy is part of Saudi Arabia’s broader economic transformation agenda, targeting:

• Increased foreign direct investment (FDI)
• Urban modernization in key metropolitan areas
• Enhanced participation of international real estate developers
• Job creation and growth in non-oil sectors

While welcoming foreign participation, Saudi authorities emphasize their commitment to prioritizing Saudi citizens and preserving Islamic cultural heritage, especially in Makkah and Madinah.

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