Saudi property reforms: A new era of opportunity for international buyers

Saudi Arabia’s recent announcement that it will permit foreign ownership of real estate in key cities from January 2026 marks a major shift in its economic and social landscape. For the first time, international buyers will be able to acquire property in Riyadh, Jeddah, and possibly even in Mecca and Medina. The move forms part of the Kingdom’s broader 'Vision 2030' strategy, aimed at reducing reliance on oil and gas and attracting long-term foreign investment.

For decades, Saudi Arabia has remained a closed market for international property investors. In contrast, Dubai has built a global reputation as a haven for foreign buyers, supported by freehold zones, attractive residency schemes and modern infrastructure. By way of illustration, more than 200,000 British nationals currently live in the UAE, compared to just 30,000 in Saudi Arabia. Riyadh’s upcoming reforms seek to recalibrate this imbalance by encouraging expats to establish more permanent ties to the Kingdom, beyond short-term work contracts.

The timing of this announcement is significant. Residential property prices in Riyadh have already risen by over 50 percent in the past four years, driven by factors such as population growth, infrastructure investment and urban regeneration. The government appears keen to avoid the speculative surges seen in Dubai’s past, limiting the new law to designated areas and excluding land transactions. Still, interest is growing among wealthy individuals and investors looking to diversify into emerging real estate markets.

This change will have practical implications for clients looking to invest in the region. Ownership in Saudi Arabia brings new and complex considerations around succession planning, local inheritance rules and tax structuring. For families with assets across multiple jurisdictions, it is crucial that any acquisition is aligned with a broader estate plan that accounts for local legal frameworks and cross-border complexities.

At Boodle Hatfield, we are already working with clients preparing for this shift. With decades of experience advising international families on complex asset structures and succession strategies, we are well placed to guide those considering a long-term foothold in Saudi Arabia. Whether structuring acquisitions, navigating succession laws or integrating Saudi assets into an existing estate plan, our team provides the clarity and confidence clients need in a rapidly evolving legal environment.