Market Insights
Table of contentsKey takeaways
Saudi Arabia's property and capital markets both open in 2026
4 property ownership paths now exist
Rental yields among the best globally
Saudi Arabia just opened both its real estate market and its stock market to foreign investors.
In January 2026, the new Law of Real Estate Ownership by Non-Saudis took effect, allowing individual foreigners to own property for the first time.
Then on February 1, 2026, the country’s financial regulator, the Capital Market Authority (CMA), eliminated the Qualified Foreign Investor (QFI) requirement entirely, opening the Saudi Exchange to everyone.
You can invest in Saudi Arabia through the Stake app.
Now, the Kingdom is open to global investment. Here's what it means, and how to actually invest.
The property market: Four paths to ownership
Previously, foreign property ownership in Saudi Arabia was off-limits. The old law restricted non-Saudis to corporate purchases only.
For example, foreigners could buy an office for their company, but they could not build personal wealth through real estate.
The new framework changes that completely.
Who can now buy property
- Foreign individuals (with or without residency)
- Foreign-registered companies
- Saudi companies with foreign shareholders
- Diplomatic missions and registered nonprofits
What's available
Traditional property ownership: Buy residential, commercial, or agricultural land in designated zones. Full ownership, clear title, which equals standard real estate investment.
Mega-project stakes: Direct investment in Saudi's flagship developments - NEOM, Qiddiya, Red Sea Global, Diriyah Gate. These are national priorities backed by hundreds of billions in sovereign capital.
Special economic zones: Commercial land and strategic development areas where Saudi is concentrating infrastructure spend.
Digital fractional ownership: The Real Estate General Authority (REGA) explicitly calls this a "key innovation" in the new framework - making it an officially recognised investment category. Investors will be able to buy tokenized stakes in Saudi real estate remotely, without visiting the Kingdom.
What's restricted
- Ownership in Mecca and Medina remains limited to Muslims
- All purchases must occur within zones designated by REGA
- A transaction fee of up to 5% applies to foreign purchases
The stock market: No more gatekeepers
Until February 2026, non-resident foreign investors faced significant barriers to the Saudi Exchange (Tadawul). The previous investor programme required approval through authorised persons, specific documentation, and until recently, minimum assets under management.
That's over.
The CMA's January 2026 announcement eliminated the QFI concept entirely. From February 1, 2026, all categories of foreign investors can invest directly in the Main Market without qualification requirements.
What this means practically
- No application process through authorised persons
- No minimum investment thresholds set by regulation
- No swap agreement workarounds needed
- Direct access to listed companies
Why the timing matters
Both changes align with Vision 2030's push to diversify Saudi Arabia's economy beyond oil. But for investors, the timing creates a specific opportunity: new investors are not competing against established players who've held assets for decades. Everyone enters the new framework together.
Market fundamentals
Rental yields:
Saudi Arabia sits at 7.34% (Q3, 2025) - outperforming London (2-4%), New York (3-5%), and Singapore (2.5-3.5%). Combined with zero local income tax on residential rental earnings, the numbers are compelling.
Price appreciation:
Riyadh recorded 10.6% year-on-year price growth in 2025. Structural drivers remain strong: population growth toward 40 million by 2030, international companies establishing regional headquarters, and massive infrastructure investment.
Market diversification:
The Saudi Exchange is no longer an oil play. Listed companies now cover IT, healthcare, logistics, renewable energy, and the sectors driving economic diversification.
What to watch
The Riyadh rent freeze: In September 2025, Crown Prince Mohammed bin Salman enacted a five-year rent freeze across residential and commercial properties in Riyadh. Landlords cannot increase rents on existing or new contracts until September 2030.
Zone designations: REGA continues publishing detailed maps showing exactly where foreign property ownership is permitted. These designations favour areas with established infrastructure.
How to invest: A practical roadmap
For property
Option 1: Direct ownership
Wait for REGA's zone maps, identify target areas, understand local dynamics. Focus on zones with strong fundamentals and clear development plans.
Option 2: Fractional investment
We offer CMA-regulated, Shariah-compliant access to Saudi real estate funds. Minimum investment: SAR 500. You invest, track your portfolio and manage everything through the app.
See our previous funds:
For the stock market
Open a trading account with a Saudi Exchange member firm. With QFI requirements eliminated, the process mirrors opening a brokerage account in most developed markets.
For sukuk (Shariah-compliant certificates), you'll access these through the same trading infrastructure. These represent partial ownership of tangible assets with returns from asset-linked cash flows rather than interest.
Common mistakes to avoid
Waiting for the perfect moment - Emerging markets don't offer perfect clarity. An initial investment teaches you more than another year of waiting.
Assuming your home market rules apply - What works in London or Singapore operates differently here. Saudi has different drivers, different cycles. Evaluate on local terms.
Concentrating everything locally - Saudi's market is growing, but single-market concentration carries risk. Consider balancing local exposure with international diversification, for example property investment in Dubai.
Your next steps
Saudi Arabia just issued a clear invitation to international investors. Expats already know the growth potential and how rare this opportunity is.
Learn more about Saudi Arabia’s property market in 2026.
Interested in Saudi real estate investment?
Check out the latest fund on the Stake app
All Investments carry risks. Stake Funds is regulated by the CMA as a Fund Distributor in KSA.
FAQs
Got questions? See below for answers.
Need more help? Visit getstake.com or Help Center: https://help.getstake.com/en/
Yes. In 2026, Saudi Arabia opened up both (1) parts of its real estate market to non-Saudis under REGA’s updated ownership framework and (2) the Saudi Exchange (Tadawul) Main Market to all categories of foreign investors after the CMA removed the QFI regime (effective Feb 1, 2026).
From January 2026, under the updated Law of Real Estate Ownership by Non-Saudis, subject to eligibility and designated zones.
Not necessarily. The new framework supports ownership by non-Saudi individuals, including non-residents, but the rules can differ by category and location, and purchases must be within designated zones.
Foreign ownership is allowed only within areas/zones designated by REGA. If a property is outside the designated zones, you typically won’t be able to register it as a foreign buyer under the new framework.
There are still restrictions around ownership in Mecca and Medina, and access may be limited (including religion-based restrictions in certain cases). Always check the latest REGA rules for the exact property/location.
Foreigners may be able to buy residential, commercial, and other categories, but what’s permitted depends on REGA’s rules and the designated zones.
About the author
The Stake Team is a trusted group of real estate and investment experts committed to delivering in-depth, data-driven insights for property investors in the UAE, Saudi Arabia, and beyond. Backed by years of industry experience, our team simplifies complex market trends, investment strategies, and more to help you make smarter decisions.
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