Non‑Muslims Banned from Buying Properties in Makkah and Madinah

July 25, 2025

Starting January 1, 2026, non-Saudi investors may buy property in Riyadh and Jeddah, while Mecca and Medina remain restricted to Muslim individuals and certain Saudi entities.

Photo by Haidan

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Saudi Arabia has fine‑tuned its property law to welcome foreign investors into two of its largest cities while safeguarding the two holy sites.

Beginning January 2026, the revised framework allows non‑Saudis to own real estate or acquire real rights in Riyadh and Jeddah under a structured approval process and a transaction fee capped at 5 percent of the property’s value.

Key Eligibility Categories

Non‑Saudi individuals (residents or non‑residents) and foreign companies
Non‑profit organizations and international missions with Foreign Affairs approval
Saudi firms with foreign shareholding and special‑purpose investment funds

Conditions in Makkah and Madinah

Only Muslim natural persons—or Saudi companies with foreign equity—may hold ownership or usufruct rights in these cities, and only within zones defined by an upcoming geographic‑scope document.

All buyers must follow guidelines issued by the General Real Estate Authority, which will detail property types, contract durations, and approval steps.

Officials say the update will channel foreign capital into housing and urban projects, strengthen non‑oil revenues, and retain global talent—while ensuring Saudi citizens’ market priority and preserving the religious character of Makkah and Madinah.

Full application procedures and maps of approved areas will be published in the coming months, giving investors clear roadmaps to participate in Saudi Arabia’s growing property market.

Footnote: Updated July 25, 2025 – Added latest eligibility criteria, fee structure, and geographic scope provisions.

Saudi Arabia approved foreign property ownership including in Makkah and Madinah effective January 2026.

The Cabinet chaired by Crown Prince Mohammed bin Salman passed this historic legislation ending decades of restrictions. Foreign individuals and entities can now own real estate in designated zones across the Kingdom.

Minister of Municipalities and Housing Majed Al-Hogail confirmed direct ownership applies to major cities like Riyadh and Jeddah while Makkah and Madinah require special regulatory approval through the Real Estate General Authority.

All foreign buyers must secure authorization from the Ministry of Investment and comply with defined financial and regulatory requirements. Foreign individuals holding valid Saudi visas or residency permits (Iqamas); international companies with a local presence; licensed banks and mortgage firms.

The Real Estate General Authority will publish exact eligible areas within 180 days via the government Istitlaa platform with draft regulations open for public consultation before finalization.

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Maisah

Maisah is a Muslimah and journalist for The Islamic Information based in Indonesia. Studying Law at Maritime University of Raja Ali Haji. She believes in the power of words and hopes that her articles will positively impact all of her readers.