Foreigners can now acquire certain real estate rights in Makkah and Madinah, but the two holy cities are governed by stricter rules than most other Saudi locations.
For an individual buyer, the most important condition is religion: direct ownership or another permitted real estate right in Makkah or Madinah is limited to Muslim non-Saudi individuals. The property must also fall within a geographical area approved for foreign ownership, and the exact right must be recorded in the Saudi Real Estate Registry.
Saudi companies with non-Saudi shareholders can follow a separate corporate route. Saudi-listed companies, licensed investment funds and special-purpose entities operate under the Capital Market Law and controls issued by the Capital Market Authority.
The new framework does not make every apartment, hotel unit, shop or plot in the two cities available to international buyers. Eligibility must be verified for the specific buyer, project, property and type of right.
Saudi Arabia’s updated Law of Real Estate Ownership by Non-Saudis entered into force on 22 January 2026. It authorises the Council of Ministers to determine the geographical scopes, permitted real estate rights, foreign ownership percentages, usufruct periods and other controls applicable to non-Saudi buyers.
Regulatory Warning: A developer brochure, listing portal or broker statement describing a project as “foreign ownership approved” is not conclusive evidence. The exact property must be verified through the official geographical-scope and registration systems.
Buyers who need a wider explanation of Saudi purchase contracts, title verification and financing should also review our guide to buying property in Saudi Arabia as a foreigner.
Can Foreigners Buy Property in Makkah and Madinah in 2026?
Yes, but only through an eligible legal route.
Buyer category | Can the buyer acquire property rights? | Main limitation |
Muslim foreign individual living in Saudi Arabia | Yes | Property must be available within an approved area and meet the applicable conditions |
Muslim non-resident foreign individual | Yes | Identity, banking, geographical-scope and registration requirements apply |
Non-Muslim foreign individual | No direct individual ownership route in Makkah or Madinah | Holy-city ownership by natural persons is limited to Muslims |
Saudi company with non-Saudi shareholders | Yes | Must follow the corporate route and applicable geographical-scope rules |
Foreign company incorporated outside Saudi Arabia | Not automatically through the individual route | May need Saudi establishment, investment registration and the legally available corporate structure |
Saudi-listed company or licensed investment fund | Potentially | Governed by Capital Market Law and CMA controls |
Foreign shareholder buying listed securities | May invest under applicable securities rules | Share ownership is not the same as holding direct title to a property |
REGA’s official guidance confirms that ownership in Makkah and Madinah is restricted to Muslim individuals and Saudi companies with non-Saudi shareholders, within specific geographical areas approved under the framework.
What Changed Under the New Saudi Property Law?
The old article referred to a 2024 reform. That description is no longer accurate.
The governing change is the updated law approved through Royal Decree No. M/14 in July 2025 and brought into force in January 2026. It replaced the previous foreign property ownership framework dating from 2000.
The most important changes are:
Earlier position | Updated 2026 framework |
Foreign access was described through narrower permissions and exceptions | The law expressly recognises resident and non-resident individuals, companies and other qualifying entities |
Makkah and Madinah were often presented as fully prohibited | Muslim individuals and qualifying Saudi companies can acquire permitted rights in approved areas |
Ownership information was frequently discussed at city level | Eligibility is determined through detailed geographical scopes |
Direct ownership and long-term use rights were often confused | Ownership, usufruct, easement and other rights in rem are legally distinguished |
Non-resident procedures were less standardised | Digital identity, banking and electronic registration procedures form part of the current process |
Buyers often relied on private title documents | Real Estate Registry registration is fundamental to the legal validity of the acquired right |
The law itself does not promise that every listed category will receive approval. Ownership remains subject to religious, cultural, economic, security and local-market considerations.
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Who Is Eligible to Buy Property in the Two Holy Cities?
Muslim Foreign Individuals
A Muslim non-Saudi natural person may acquire a permitted property right in an approved part of Makkah or Madinah.
This rule applies to qualifying Muslims living inside or outside Saudi Arabia. However, residence status affects the application process, identity documents, banking setup and other procedural requirements.
The official Saudi Properties ownership guide describes the individual ownership route in Makkah and Madinah as applying to residential property. Buyers should therefore not assume that the same individual route automatically covers hotels, shops, office buildings or development land.
Saudi Companies With Foreign Shareholders
A company incorporated under the Saudi Companies Law and owned partly or wholly by non-Saudi shareholders may acquire qualifying real estate or other rights in rem in approved areas, including Makkah and Madinah.
This is a separate route from an individual foreign buyer. The company’s incorporation, Commercial Registration, business activities, ownership disclosures and investment position must be consistent with the transaction.
A foreign investor should not create a Saudi company merely to bypass individual ownership controls. The entity must have a genuine and compliant legal purpose.
Listed Companies and Investment Funds
Saudi-listed companies, licensed investment funds and special-purpose entities can acquire property rights under capital-market regulations and CMA controls.
A foreign investor may also gain financial exposure through shares or fund units where securities regulations permit it. However, owning shares in a listed company or REIT is not the same as owning a specific Makkah or Madinah property.
The shareholder owns a security. The company or fund owns the underlying real estate.
Do Foreign Buyers Need Saudi Residency?
Not every eligible Muslim buyer must already hold an Iqama.
The 2026 framework recognises non-Saudi natural persons whether they live inside or outside Saudi Arabia. However, the procedure differs.
Resident Muslim Buyer
A resident buyer will generally use existing Saudi identity and banking records. The buyer must still establish that:
The exact property falls within an approved area
The property type is available to the individual buyer
The registered right is legally transferable
The source of funds is documented
The transaction satisfies the applicable registration conditions
Non-Resident Muslim Buyer
A non-resident buyer may need to establish:
An approved Saudi digital identity
A Saudi mobile number linked to that identity
A Saudi bank account in the buyer’s name
Verified passport and personal information
Evidence of source of funds
Eligibility under the relevant geographical scope
Regulatory Warning: A tourist visa, business visa or ability to enter Saudi Arabia does not independently establish the right to purchase a property in Makkah or Madinah.
Where Can Foreigners Buy in Makkah and Madinah?
Foreign ownership is available only within the geographical scopes approved under the law.
These scopes can identify:
The exact neighbourhood, project or plot
The property types available
The buyer categories permitted
The maximum foreign ownership percentage
Whether full ownership is available
Whether only usufruct or another right is available
The maximum duration of a usufruct
Restrictions on use, transfer or development
REGA publishes ownership information through the official Saudi Properties portal. The portal is designed to show permitted zones, available property rights, duration limits and applicable controls.
Regulatory Warning: Approval should be checked at the property or project level—not merely by confirming that the property is located somewhere in Makkah or Madinah.
Evaluating a Makkah Property
Makkah has strong religious-tourism, hospitality and residential demand drivers, but legal availability and investment performance can vary substantially by district and project.
A foreign buyer should assess:
Distance and transport access to the Grand Mosque
Property ownership zone
Residential or commercial classification
Type and duration of the acquired right
Seasonal occupancy patterns
Building management
Service charges
Rental-operation permissions
Future supply
Exit liquidity
Our Makkah real estate market page provides broader location and market information.
Evaluating a Madinah Property
Madinah also benefits from pilgrimage, religious tourism, permanent residential demand and continuing infrastructure development.
Important considerations include:
Access to the Prophet’s Mosque
Public transport and road connectivity
Project licensing
Property use
Geographical-scope eligibility
Service and maintenance charges
Tenant profile
Handover status
Resale market
Property-management availability
Explore the wider Madinah property market before comparing individual projects.
The popularity of a district does not establish foreign ownership eligibility. The Saudi Properties portal remains the controlling reference for the property’s legal availability.
Is It Freehold Ownership or Usufruct?
Foreign buyers may encounter different forms of real estate rights.
Right | Practical meaning |
Full ownership | The buyer receives the legally recognised ownership right, subject to registered restrictions |
Usufruct | The holder may use and benefit from the property for a defined period without permanently owning the underlying asset |
Easement | A registered right connected to access, utilities or use of another property |
Other right in rem | Another legally recognised property interest permitted under Saudi law |
A long-term usufruct should not be advertised or understood as freehold ownership.
Under the new law, the maximum usufruct period is determined through the Council of Ministers’ geographical-scope decision. It is not automatically 99 years in every project.
A 99-year usufruct period appears in specific legal contexts, including provisions associated with Premium Residency rights in Makkah and Madinah. Buyers must nevertheless verify the actual period shown in the project documents, ownership scope and registered contract.
Regulatory Warning: Never accept “99-year ownership” as a legal description without confirming whether the transaction grants ownership, usufruct, leasehold or another contractual right.
Can Foreigners Buy Off-Plan Property in Makkah or Madinah?
An eligible foreign buyer may acquire an off-plan unit where the project and transaction comply with both the foreign ownership framework and Saudi off-plan regulations.
The project must have the applicable approval under WAFI, Saudi Arabia’s official off-plan sales and lease programme.
WAFI licences off-plan projects and records qualifying developers in the Real Estate Developer Registry.
Before reserving an off-plan property, verify:
The developer’s registration
The project’s WAFI licence
The exact project name and location
The unit number and approved plans
The designated escrow account
The licensed marketing entity
The construction and handover programme
The project’s foreign ownership eligibility
The right that will ultimately be registered
The buyer’s refund rights if registration cannot be completed
The official WAFI off-plan sales and lease platform should be checked before funds are transferred.
Regulatory Warning: A recognised developer may operate several projects. The developer’s general reputation does not prove that the particular project has a valid WAFI licence.
Documents a Foreign Buyer May Need
The final list depends on residence status, transaction structure and property type.
Category | Common documents | Important verification |
Personal identity | Valid passport, Saudi identity or digital identity | Names and passport numbers must match every contract |
Religious eligibility | Evidence or declaration requested under the applicable process | Individual ownership in the holy cities is limited to Muslims |
Saudi contact information | Saudi mobile number and registered address details | Particularly relevant for a non-resident buyer |
Banking | Saudi bank account and payment evidence | Funds should move through authorised channels |
Financial compliance | Source-of-funds records and bank statements | Larger transactions may receive enhanced compliance checks |
Property | Title record, property number, plans and registered use | Must correspond to the exact unit being purchased |
Seller | Seller identification and authority to sell | Required where a representative or company signs |
Off-plan project | WAFI licence, escrow details and unit contract | Verify through the official project record |
Company buyer | CR, articles of association, shareholder information and board resolution | Activities and ownership disclosures must support the purchase |
Financing | Bank approval and mortgage documents | Loan approval does not prove property eligibility |
Foreign-issued corporate records may need apostille, legalisation, authentication and certified Arabic translation.
How to Buy Property in Makkah or Madinah as a Foreigner
Step 1: Confirm the Buyer’s Eligibility
Determine whether the purchaser is:
A Muslim resident individual
A Muslim non-resident individual
A Saudi company with foreign shareholders
A listed company, licensed fund or special-purpose entity
The legal route should be established before a property is selected.
Step 2: Verify the Ownership Zone
Search the exact project or property through the official Saudi Properties system.
Confirm the:
Eligible buyer category
Permitted property type
Type of property right
Ownership percentage
Usufruct period
Transfer conditions
Step 3: Use Licensed Professionals
The broker or marketing establishment should hold the applicable REGA FAL licence.
A Saudi legal or conveyancing professional should independently review the property documents and agreement. The broker representing the transaction should not be treated as the buyer’s independent legal adviser.
Step 4: Verify the Property in the Real Estate Registry
The updated law requires the acquired property right to be recorded in the Real Estate Registry.
Registry information can include:
Property number
Registered owner
Location and dimensions
Registered use
Ownership or usufruct right
Mortgages
Easements
Restrictions
Third-party obligations
The right becomes legally valid through registration in accordance with the governing provisions.
Step 5: Check WAFI for an Off-Plan Purchase
Confirm that the developer and specific project are authorised and that payments are directed to the approved escrow structure.
Step 6: Review the Sale Agreement
The contract should identify:
Exact property and unit
Legal right being transferred
Purchase price
Deposit and payment schedule
Conditions required before completion
RETT responsibility
Additional non-Saudi fee
Brokerage fees
Registration process
Handover date
Defect obligations
Refund conditions
Default consequences
Dispute-resolution process
The buyer should have a clear termination and refund right if the required property right cannot legally be registered.
Step 7: Register and Settle the Transaction Tax
The transaction must be registered through ZATCA’s Real Estate Transaction Tax system.
The seller or assignor is generally responsible for the tax, although the parties may agree commercially that the buyer bears the economic cost. ZATCA requires RETT to be paid before or during the transfer or notarisation process.
Step 8: Complete the Registry Transfer
Do not release the final payment merely because keys have been handed over.
Completion should be tied to registration of the correct property right in the buyer’s name.
Regulatory Warning: A booking form, private agreement, payment receipt or physical possession does not replace Real Estate Registry registration.
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Taxes and Fees for Foreign Property Buyers
Real Estate Transaction Tax
Saudi Real Estate Transaction Tax is charged at 5% of the taxable transaction value unless a statutory exemption applies.
The transaction is registered through the ZATCA Real Estate Transaction Tax service.
RETT is transaction-based. The seller is generally legally responsible for payment, although the agreement can determine which party ultimately bears the cost.
Buyers should not describe RETT as universally non-refundable. Refunds may be available in limited situations, such as an excess payment, mistake, incomplete transaction or qualifying cancellation.
Additional Non-Saudi Fee
The updated ownership framework permits an additional fee of up to 5% on a disposition involving a non-Saudi.
Together, the government transaction burden may therefore reach:
5% RETT
An additional non-Saudi fee of up to 5%
The additional percentage can depend on the property, transaction, ownership right, purpose and geographical scope.
Other Possible Costs
Cost | When it may apply |
Brokerage commission | Where a licensed broker completes the transaction |
Legal review | Contract, buyer eligibility and title due diligence |
Valuation | Financing, investment assessment or residency |
Translation and legalisation | Foreign-issued documents |
Bank charges | Mortgage, transfer and compliance processing |
Registration expenses | Registry and transaction services |
Service charges | Apartments, hospitality units and managed communities |
Property management | Where the buyer does not manage the asset directly |
Developer charges | New-build and off-plan projects |
Insurance | Financing or property-risk requirements |
For a broader explanation, review our guide to real estate taxes in Saudi Arabia.
Can Foreign Buyers Get a Mortgage?
Mortgage availability is determined by the lender.
A Saudi bank or finance company may consider:
Residency status
Employment and salary
Age
Credit record
Down payment
Property type
Registered ownership right
Project approval
Remaining usufruct term
Source of funds
Premium Residency status
A non-resident foreign buyer should not assume that financing will be available simply because the property is legally eligible.
A bank’s preliminary approval also does not replace the ownership-zone check or Registry due diligence.
Does Buying Property Provide Saudi Residency?
No. Property ownership does not automatically grant Saudi residency.
Saudi Arabia offers a separate Real Estate Owner Residency product under the Premium Residency programme. The applicant must submit an independent application and satisfy its personal, financial and property requirements.
The qualifying property or usufruct must generally have a value of at least SAR 4 million.
The residency application remains separate from:
Property reservation
Ownership-zone approval
WAFI approval
Sale agreement
RETT payment
Real Estate Registry transfer
Regulatory Warning: No broker, developer or property seller can guarantee Premium Residency approval merely because a property costs SAR 4 million or more.
Direct Property Ownership vs REIT Investment
Foreign investors can gain exposure to Makkah and Madinah real estate without purchasing a specific property.
Direct property ownership | Listed company or REIT investment |
Buyer owns or holds the registered right in a particular property | Investor owns securities in a company or fund |
Requires buyer and property eligibility | Requires compliance with capital-market investment rules |
Includes title, use and maintenance responsibilities | Investment is managed through the listed entity or fund |
Transaction costs apply to the property transfer | Brokerage and securities-market costs apply |
Liquidity depends on the property resale market | Liquidity depends on the listed security and market |
Investor controls the specific asset subject to law | Investor generally does not control individual underlying properties |
REITs may suit an investor seeking indirect exposure, but they should not be described as a substitute for direct ownership without explaining the different risks.
Makkah and Madinah Property Investment Risks
Neither religious significance nor visitor demand guarantees a profitable investment.
A buyer should evaluate:
Whether the property is legally available
Purchase price against comparable transactions
Actual achieved rent
Seasonal vacancy
Rental-operation permissions
Service charges
Building quality
Developer delivery record
Management agreement
Future competing supply
Transport access
Remaining usufruct period
Resale buyer pool
Financing costs
Total government fees
The original article’s claims of guaranteed high income and appreciation should not be retained. Returns depend on the property, price, legal right, operations and market conditions.
Use our Saudi real estate investment guide for 2026 to compare legal eligibility with investment fundamentals.
Due Diligence Checklist Before Paying a Deposit
Check | Why it matters |
Muslim individual eligibility | Required for a natural-person purchase in Makkah or Madinah |
Exact geographical scope | Confirms whether the project or plot is open to the buyer |
Property type | Individual ownership may be limited to qualifying residential assets |
Registered right | Distinguishes ownership from usufruct or contractual occupancy |
Seller authority | Prevents unauthorised or fraudulent sales |
Real Estate Registry record | Confirms title, mortgages, rights and restrictions |
WAFI licence | Required for a regulated off-plan project |
Escrow account | Protects payments made during construction |
Full cost statement | Shows RETT, additional fees, brokerage and service charges |
Contract refund clause | Protects the buyer if registration fails |
Rental permissions | Confirms whether the planned income model is permitted |
Exit strategy | Identifies future resale and liquidity constraints |
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Common Mistakes to Avoid
Assuming Every Muslim Foreigner Can Buy Anywhere
Religion is a central requirement for an individual buyer, but it is not the only requirement. The property must still be inside an approved scope.
Treating MISA Approval as a Universal Individual Requirement
MISA registration can be relevant for companies and investment structures. It should not be described as the same mandatory approval for every individual homebuyer.
Confusing Listed Shares With Direct Ownership
Buying shares in a company that owns Makkah property does not give the investor title to an apartment, hotel or land parcel.
Assuming Every Right Lasts 99 Years
The permitted usufruct term is determined by the applicable legal route and geographical scope.
Buying Off-Plan Without WAFI Verification
Check the exact project licence, developer registration and escrow account.
Paying Before Checking the Real Estate Registry
The seller’s documents should be matched with the official property record.
Assuming Property Guarantees Residency
Property and Premium Residency are separate processes.
Accepting Guaranteed Return Claims
Projected rent, occupancy and appreciation should be independently assessed.
Before You Commit to a Makkah or Madinah Property Purchase
Saudi Arabia’s 2026 framework creates a genuine route for eligible foreign participation in the two holy cities, but it remains tightly regulated.
A safe purchase requires confirmation of four separate matters:
The buyer qualifies under the holy-city rules.
The property lies within an approved geographical scope.
The advertised property right can legally be transferred.
The completed right will be registered in the buyer’s name.
A respected developer, licensed broker or premium purchase price does not remove these requirements.
Real Estate Saudi provides research-led guidance on ownership zones, property markets and investment opportunities across the Kingdom. For assistance evaluating an opportunity, contact Real Estate Saudi.
This guide provides general information and does not constitute Saudi legal, tax, immigration, religious-eligibility, financing or investment advice. Buyers should verify the current position with REGA, Saudi Properties, WAFI, ZATCA, the Real Estate Registry, the Premium Residency Center and qualified Saudi advisers before signing or paying.
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Frequently Asked Questions
Muslim non-Saudi individuals can acquire permitted residential property rights in approved parts of Makkah. Saudi companies with foreign shareholders can follow a separate corporate route.
Yes, eligible Muslim foreign individuals can acquire permitted rights in approved areas of Madinah. The exact property and ownership right must satisfy the official geographical-scope rules.
No. Direct ownership or other permitted rights by a non-Saudi natural person in the two holy cities are limited to Muslim individuals.
Not necessarily. Resident and non-resident Muslim individuals may qualify, but non-residents must complete the applicable digital identity, Saudi banking and registration procedures.
An individual buyer should not assume that commercial property is available through the same route as residential ownership. Eligibility depends on buyer category, property use and the applicable geographical scope.
A qualifying buyer may purchase an eligible off-plan unit where the project is available under the ownership scope and holds the required WAFI licence.
No. A project may offer full ownership, usufruct or another right. The legal right and duration must be verified before purchase.
RETT is 5% of the taxable transaction value. An additional non-Saudi disposition fee of up to 5% may also apply, depending on the transaction and applicable regulations.
Not automatically. Real Estate Owner Residency requires a separate application and qualifying residential property or usufruct worth at least SAR 4 million.
The buyer should confirm personal eligibility, the approved ownership zone, the exact registered property right, seller authority, Registry information and WAFI licensing where the unit is off-plan.
