Saudi Arabia designated zones for foreign property ownership decide where overseas individuals and companies can buy real estate under the Kingdom’s new non-Saudi ownership framework. If you are an investor in Europe, the United States or Asia considering an apartment in Riyadh, a home in Jeddah or a residence linked to a giga-project, the zone a property sits in is the first thing to check.
The Law of Real Estate Ownership by Non-Saudis took effect on 22 January 2026. On 23 June 2026, after the Council of Ministers approved the implementing regulations, REGA published the named areas open to non-Saudi ownership. These now cover selected districts and projects in Riyadh, Jeddah, Makkah and Madinah, together with NEOM, The Red Sea, AMAALA, AlUla and several economic cities and special economic zones.
The short answer: foreigners can buy only inside these approved areas, or through a small number of exceptions, such as one home for legal residents outside the zones. A city or project appearing on the list does not make every property inside it eligible, so each unit must be checked on the official map.
This guide explains what a designated zone is, lists the approved areas city by city, explains the special rules for the holy cities, and shows how to confirm whether a specific property qualifies. It is general information, not legal advice.
Quick Facts: Saudi Arabia’s Foreign Ownership Zones
Question | Answer in 2026 |
|---|---|
What is a designated zone? | An approved area where eligible non-Saudis can acquire specified property rights |
When were the zones published? | 23 June 2026, after Cabinet approval of the implementing regulations |
Main cities covered | Riyadh, Jeddah, Makkah and Madinah |
Giga-projects covered | NEOM, The Red Sea, AMAALA and AlUla areas 1 to 17 |
Economic zones covered | King Abdullah Economic City and its special economic zone, Jazan and Ras Al Khair special economic zones |
Are whole cities open? | No, only the named areas within them |
Can non-residents buy? | Yes, eligible non-residents can buy in approved areas |
Holy cities | Direct individual ownership limited to Muslims |
How to check a property | REGA’s Saudi Properties interactive map and official application process |
Exit fee | 2% when non-Saudis sell in Riyadh, Jeddah, Makkah and Madinah |
What Does a Designated Zone Mean?
A designated zone is a geographical area formally approved for specific kinds of non-Saudi ownership or other property rights. It is more detailed than a list of cities. Under Article 2 of the Law of Real Estate Ownership and Investment by Non-Saudis, each zone can set:
which buyer categories may acquire property there
which rights are available, such as full ownership or usufruct
the maximum foreign ownership percentage in a building or project
the maximum duration of usufruct or other time-limited rights
any other conditions specific to the area
A property can therefore sit inside an approved development and still carry conditions that limit who can buy it or what right they receive. For investors used to markets with unrestricted foreign freehold areas, this is the key difference.
A designated zone shows that a location is covered by the framework. It is not a guarantee that every unit can be bought by every foreign buyer. The official Saudi Properties platform, run by REGA, provides interactive maps showing boundaries, permitted rights, ownership percentages and duration limits.
For the full legal background, eligible buyer categories and purchase steps, read our Saudi Arabia Foreign Property Ownership Law guide for international investors.
Saudi Arabia Designated Zones for Foreign Property Ownership: The Full List
On 23 June 2026, REGA clarified the areas open to non-Saudi ownership. The published list is summarised below.
Region or category | Approved areas |
|---|---|
Riyadh | Qiddiya, New Murabba, Sports Boulevard and Arts District, Diriyah Gate, King Salman Park, Sedra, King Abdullah Financial District (KAFD), King Salman International Airport and the Transit-Oriented Development project |
Jeddah | Central Jeddah and Development Areas 1 to 55 across Jeddah Governorate |
Makkah | Abraj Makkah, Al Manar, Burj Ajyad, King Salman Gate, Tilal Village, Jabal Omar, Thakher Makkah, Smou Suburb, Masar, and Makkah Zones 1 and 2 |
Madinah | Gharra, Al Mahwa, Darat Al Hijrah, Downtown Madinah, Diyar Al Maqar, Rua Al Madinah, Knowledge Economic City, Mishraf, and Madinah Zones 1 and 2 |
AlUla | Areas 1 to 17 |
Giga and major projects | NEOM, AMAALA and The Red Sea |
Economic cities and zones | King Abdullah Economic City, King Abdullah Economic City Special Economic Zone, Jazan Special Economic Zone and Ras Al Khair Special Economic Zone |
These names identify areas within the framework. They are not a legal description of every eligible plot or building, and boundaries and conditions can change. Always confirm the exact property on the official map.
Riyadh: Approved Zones for International Buyers
Riyadh has nine named areas, most of them flagship developments:
King Abdullah Financial District (KAFD): the capital’s main financial and business district.
New Murabba: a new downtown district planned around a landmark cube.
Diriyah Gate: a heritage-led destination beside the historic At-Turaif district.
Qiddiya: an entertainment, sports and culture city on the edge of Riyadh.
King Salman Park: a large urban park project with surrounding development.
Sports Boulevard and Arts District: a long linear park and cultural corridor.
Sedra: a large residential community in north Riyadh.
King Salman International Airport: the planned new airport and its related development.
Transit-Oriented Development project: development linked to the transport network.
An apartment marketed as “near KAFD” or “next to the Sports Boulevard” is not automatically inside the designated boundary. Proximity to a major project does not create eligibility.
Why Riyadh matters to overseas investors
Riyadh combines government, finance and hundreds of regional headquarters, which supports demand for apartments, branded residences and mixed-use districts. Market factors such as delivery timelines, rental demand and resale liquidity matter, but only after legal eligibility is confirmed.
Explore the Riyadh property market for local context, and read how foreigners can buy property in Riyadh for a city-specific walkthrough.
Jeddah: Central Jeddah and Development Areas 1 to 55
Jeddah has the broadest published coverage of any city: Central Jeddah plus 55 numbered development areas across the governorate. This is far more specific than early predictions that Jeddah would receive “several zones”.
The numbered areas do not make all of Jeddah open to foreign buyers. A buyer must confirm where each development area begins and ends, whether the property falls inside it and which rights are permitted.
Jeddah offers lower entry prices than Riyadh, coastal living and major waterfront projects such as Jeddah Central. A property advertised as waterfront or international does not automatically meet ownership requirements, so compare the official boundaries with the project’s registered land information.
Our guide to foreigners’ freehold ownership zones in Jeddah covers the city in more detail, and our Jeddah area guide gives district-level context.
NEOM: Included in the Framework, but No Open Market Yet
NEOM is named among the major projects in the approved framework. That is a real change from early 2026, when NEOM’s inclusion was only expected.
Inclusion does not mean homes in NEOM can be bought today. Three separate questions apply:
Is the area recognised in the framework? For NEOM, yes.
Is a specific property actually for sale to your buyer category? This must be confirmed with NEOM Company or an authorised partner.
Can the right being sold be registered in your name? This must be verified through official channels.
NEOM is also being restructured. In 2026, work on The Line was reported paused until after 2030, and attention has shifted to Oxagon’s port and industrial activity. No public homebuying programme or official price list has been announced.
Our guide on whether foreigners can buy property in NEOM and our NEOM area page explain the current position.
The Red Sea and AMAALA: Designated Tourism Destinations
The Red Sea and AMAALA, both developed by Red Sea Global, are named in the approved framework. This matters for international buyers interested in branded villas, resort residences and second homes.
Designation at project level does not confirm that every villa, hotel residence or apartment is available for foreign freehold purchase. Some products may be sold as different rights, or come with hotel management, rental pool or usage conditions.
Before buying, ask:
whether the specific unit lies inside the approved boundary
what right is being sold and for how long
whether resale or transfer is restricted
what service charges and operating costs apply
Our Red Sea area guide gives more context on the destination.
AlUla: Areas 1 to 17
AlUla, the heritage destination in northwest Saudi Arabia, has 17 numbered areas in the framework. The region is focused on cultural tourism, hospitality and heritage conservation, so available products are likely to be tourism-led rather than ordinary city apartments. As with other destinations, check the exact area, permitted use and the right on offer.
Makkah and Madinah: Approved Areas With Special Restrictions
The holy cities are not excluded from the framework, but strict rules apply.
Makkah areas include Abraj Makkah, Al Manar, Burj Ajyad, King Salman Gate, Tilal Village, Jabal Omar, Thakher Makkah, Smou Suburb, Masar, and Makkah Zones 1 and 2.
Madinah areas include Gharra, Al Mahwa, Darat Al Hijrah, Downtown Madinah, Diyar Al Maqar, Rua Al Madinah, Knowledge Economic City, Mishraf, and Madinah Zones 1 and 2.
Who can acquire rights in the holy cities?
Direct individual ownership by non-Saudis in Makkah and Madinah is limited to Muslims, within these approved areas. Qualifying Saudi companies and regulated investment vehicles follow separate provisions. The resident one-home exception that applies elsewhere does not apply in the holy cities.
A Muslim non-resident buying in an approved area must still meet the identity, banking and registration requirements. A non-Muslim foreign individual cannot assume eligibility just because a project appears on the map. Our step-by-step guide for foreigners buying in Makkah and Madinah explains the process.
Eastern Province: Dammam, Khobar and Ras Al Khair
Dammam and Al Khobar are important commercial markets linked to energy, industry and logistics. However, the June 2026 list does not name residential districts in either city.
The Eastern Province’s only named area is the Ras Al Khair Special Economic Zone, an industrial and mining hub rather than a residential neighbourhood. Its inclusion does not make property in Dammam or Khobar generally available to overseas individuals.
There are still two possible routes in the region:
Legal residents may own one home for personal use outside the zones, which can include Dammam or Khobar.
Saudi companies with foreign shareholders may, with Ministry of Investment approval, buy property outside the zones for business operations or employee housing.
Non-resident individual investors should not assume any Dammam or Khobar district is open to them. Our guide to foreign property ownership in Dammam and Khobar covers the options in more detail.
Economic Cities and Special Economic Zones
The framework also covers King Abdullah Economic City (KAEC) and its special economic zone, the Jazan Special Economic Zone and the Ras Al Khair Special Economic Zone.
These locations serve different purposes:
KAEC is a mixed-use city on the Red Sea coast with residential, industrial and port areas.
Jazan Special Economic Zone focuses on industry and logistics in the southwest.
Ras Al Khair Special Economic Zone focuses on mining and heavy industry in the Eastern Province.
Industrial zones are mainly relevant to companies seeking premises, warehouses or staff housing, rather than individuals looking for a rental apartment. Identify the intended use, property type, right and buyer category before assessing investment returns.
Comparing Saudi Arabia Designated Zones for Foreign Property Ownership
City or project | Position in the framework | Key check for buyers |
|---|---|---|
Riyadh | Nine named areas, including KAFD, New Murabba, Diriyah Gate and Qiddiya | Exact boundary and right offered |
Jeddah | Central Jeddah and Development Areas 1 to 55 | Which numbered area the property is in |
Makkah | Named projects and Makkah Zones 1 and 2 | Muslim buyer eligibility or entity rules |
Madinah | Named projects and Madinah Zones 1 and 2 | Muslim buyer eligibility or entity rules |
NEOM | Named major project | Whether any unit is actually offered for sale |
The Red Sea / AMAALA | Named major projects | Right type, resale terms and running costs |
AlUla | Areas 1 to 17 | Permitted use and right offered |
KAEC and special economic zones | Named economic areas | Commercial or residential use |
Dammam / Khobar | No named residential districts | Resident one-home rule or company route |
This summary is based on REGA’s June 2026 announcement and is not a substitute for the official interactive map. The most common mistake is treating a whole city’s appearance on the list as unrestricted foreign ownership.
How to Verify Whether a Property Is Inside an Approved Zone
Saudi Arabia designated zones for foreign property ownership are checked property by property, not city by city. Before paying a deposit or signing any binding agreement, complete these checks:
Identify the exact property. Get the full development name, address, plot number and title deed or property number.
Check the official map. Locate the property on the Saudi Properties interactive map. A nearby landmark is not enough.
Review the permitted rights. Confirm the right type, ownership percentage, duration, use and any buyer conditions.
Confirm your buyer category. Are you a non-resident individual, a resident, a company or another recognised entity?
Get legal confirmation. Ask a qualified Saudi property lawyer to verify eligibility and the registered title.
Complete the official process. Apply through Saudi Properties, pay electronically and register the right in the Real Estate Registry.
The most important document is the official record confirming the legal position of the specific property, not a brochure describing the surrounding district.
How the Zones Affect Different Types of Buyers
Buyer type | Where they can buy | Notes |
|---|---|---|
Non-resident individual | Inside approved zones only | Needs a Saudi digital identity, Saudi bank account and Saudi mobile number |
Resident individual | Inside approved zones, plus one home outside them | The one-home exception does not apply in Makkah or Madinah |
Muslim individual (resident or non-resident) | Approved zones, including those in Makkah and Madinah | Holy-city areas carry extra conditions |
Foreign company | Inside approved zones | Must register with the Ministry of Investment and disclose its owners |
Saudi company with foreign shareholders | Approved zones, plus outside them with approval | Outside the zones, only for business use or staff housing, and not in Makkah or Madinah |
The table shows why the same apartment can be open to one buyer and closed to another. A resident expat in Riyadh may be able to buy a family home in a district outside the zones, while an overseas investor living in London could only buy that same home if it sat inside an approved area.
For companies, the purpose of the purchase matters as much as the location. A warehouse in a special economic zone may suit a foreign manufacturer, while a block of apartments outside the zones would be possible only as staff housing for a Saudi company with the right approvals.
Costs Linked to the Zones
The location of your property also affects your exit costs. The implementing regulations set the non-Saudi disposition fee at 2% for properties in Riyadh, Makkah, Madinah and Jeddah, with a 0% rate elsewhere unless specified. Certain transactions, such as inheritance divisions and final court judgments, are exempt.
The 5% Real Estate Transaction Tax applies to covered transactions everywhere in the Kingdom. Budget for both, along with brokerage, registration and service charges.
Risks of Buying Outside an Approved Zone
Ignoring the rules on Saudi Arabia designated zones for foreign property ownership can be expensive. Buying without confirming eligibility can have serious consequences:
the purchase may not be capable of completion or registration
deposits, legal fees and financing costs may be lost
contracts may end in dispute
The law also carries strict penalties. Violations, such as acquiring property outside permitted areas or using false information, can lead to fines of up to SAR 10 million and forced sale of the property.
Be especially careful when a seller says an area “will become eligible soon”. Expected designation is not the same as approval. Holding property through a nominee or company to get around the rules is not a safe workaround either, as companies face their own disclosure and enforcement rules.
What International Buyers Should Watch Next
The zone list has been published, so attention now shifts to how it is applied. Watch for:
changes to zone boundaries or new areas being added
updates to ownership percentages and usufruct limits
sales launches in newly listed destinations such as NEOM, AlUla and the Red Sea
new REGA guidance for non-resident and corporate buyers
Investors from Europe, the United States and Asia should also review home-country tax, currency exposure and overseas asset reporting before buying.
Conclusion
Saudi Arabia designated zones for foreign property ownership now cover named areas in Riyadh, Jeddah, Makkah and Madinah, plus NEOM, The Red Sea, AMAALA, AlUla and several economic zones. That gives international investors a much clearer map than in early 2026.
The name on the list is only the starting point. Eligibility depends on the exact property, the right offered and your buyer category. Check every unit on the official map, budget for taxes and the 2% exit fee where it applies, and take qualified legal advice before committing funds.
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Frequently Asked Questions
Parts of Riyadh are. The approved areas are: KAFD, New Murabba, Diriyah Gate and Qiddiya King Salman Park and Sedra the Sports Boulevard and Arts District King Salman International Airport the Transit-Oriented Development project The rest of the city is not automatically open, so check the exact property on REGA’s official map.
Yes, if the apartment is inside an approved area and you meet the buyer requirements. Jeddah’s approved areas are Central Jeddah and Development Areas 1 to 55 across the governorate. Confirm which numbered area the property falls in, the right offered, and complete the identity, banking and registration steps before paying.
Yes, NEOM is named among the major projects in the June 2026 framework. However, there is currently no public homebuying programme or official price list, and the project is being restructured. Any genuine sale would have to come from NEOM Company or an authorised partner, so verify the right and registration before paying.
Both destinations are named in the approved framework, which opens the door to eligible foreign buyers. Each product may come with its own right, duration, management and resale conditions, especially branded or hotel-managed residences. Check that the exact unit is inside the approved boundary and that the right can be registered in your name.
No, not directly. Individual ownership by non-Saudis in the approved areas of the two holy cities is limited to Muslims. Non-Muslim investors can gain indirect exposure through shares in Saudi-listed companies that own property there, subject to foreign ownership limits. Qualifying Saudi companies and investment vehicles follow separate rules.
Not through named zones. The June 2026 list does not include residential districts in Dammam or Khobar; the Eastern Province’s only named area is the Ras Al Khair Special Economic Zone. Legal residents may still own one home outside the zones, and Saudi companies with foreign shareholders may buy for business use with approval.
Use the interactive map on REGA’s Saudi Properties platform and locate the exact plot or unit, not just the district. Review the permitted right, ownership percentage, duration and conditions. Then ask a qualified Saudi property lawyer to confirm eligibility and title before you pay a deposit or sign a binding agreement.
Yes, in one case. A legally resident foreigner may own one home for personal use outside the zones, except in Makkah and Madinah. The rule applies per household, so a spouse and non-Saudi children cannot each buy another home under it, unless the marriage ends or a child reaches 25.
Premium Residency holders benefit from a separate, more favourable framework, but it is not an unlimited right to buy any property anywhere. Rules for specific locations, especially Makkah and Madinah, still apply. Check the conditions of your residency category and the specific property before buying.
Changes are possible through the official approval process, and REGA can update boundaries and conditions. Do not rely on claims that a district will be added soon. Only areas published by the authorities count, so check the latest map on the Saudi Properties platform at the time of your purchase.
