Thekabarnews.com—Saudi Arabia announced a landmark reform that will permit foreign Muslims to own property in certain parts of Makkah and Madinah. This is a major break with the kingdom’s decades-old real estate policy for the two holiest cities in Islam.

The reform is part of Saudi Arabia’s broader Vision 2030 strategy to diversify its economy and attract international investment. Furthermore, it aims to improve the Kingdom’s standing as a global destination for religious tourism and real estate development.

The Saudi Cabinet approved the legal framework for foreign ownership of real estate. The new foreign real estate ownership law came into effect in 2026.

The new rules restrict property ownership in approved areas of Makkah and Madinah to Muslim foreign nationals only. The ban on non-Muslims entering the holy cities and owning property there remains in effect.

Furthermore, the government limits ownership to the development zones it designates, not the whole cities. Major projects such as Jabal Omar, Masar, Abraj Makkah, and Tilal Village are among the approved investment areas in Makkah.

In Madinah, eligible places include Ruaa Al-Madinah, Downtown Madinah, Knowledge Economic City, and several other designated projects near the two holy mosques. These developments are part of Saudi Arabia’s long-term urban expansion plans. Moreover, these developments connect to Vision 2030.

Foreign buyers need to apply through the government’s digital platform, Saudi Properties.

Applicants living in Saudi Arabia are able to register with their Iqama residence permit. Meanwhile, Muslims living outside of the country should acquire a digital identification credential from a Saudi embassy or consulate. They should get this credential before starting the property acquisition process.

The new framework also allows qualified investors to apply for Saudi Premium Residency.

Pursuant to the regulations, buyers who purchase a completed property of at least SAR 4 million and pay the full amount in cash without mortgage financing may be eligible for Premium Residency. This is provided they meet the applicable legal requirements.

The reform is a historic policy shift for many Muslims around the world.

Foreign Muslims could normally get long-term usufruct or lease arrangements in Makkah and Madinah in the past but not permanent ownership rights. However, the new law allows qualified Muslim purchasers to acquire ownership rights in specified areas. This process occurs within a regulated legal system.

The reform is part of Saudi Arabia’s broader push to boost religious tourism. In addition, it aims to cater to the growing numbers of pilgrims visiting the Kingdom each year.

Saudi Arabia plans to welcome 30 million Umrah pilgrims each year by 2030 as part of its Vision 2030 initiative. This influx is expected to trigger giant investment in hotels, transportation, and large-scale mixed-use developments around the Grand Mosque in Makkah and the Prophet’s Mosque in Madinah.

But the mix of limited supply, strong religious demand, and continued infrastructure investment could enhance the long-term value of real estate in designated zones.

Officials say they will closely regulate the market to maintain the religious significance and unique character of the two holy cities. Additionally, this regulation will support sustainable economic development under Vision 2030.

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