A Complete Guide to the Current Law (2025 Update)
Interest in purchasing property in Makkah and Madinah has grown significantly in recent years. With new real-estate reforms being announced in Saudi Arabia, many assume that foreigners can now buy property in the holy cities. However, the reality is more nuanced. This guide provides a clear, trustworthy explanation based on the latest legal developments.
Can Non-Saudis Own Property in Makkah or Madinah? (Short Answer)
No. As of today, non-Saudis cannot purchase freehold property in Makkah or Madinah.
This restriction applies to:
- Full freehold ownership
- Usufruct [Inside Makkah/Madinah proper — especially near the Haram — usufruct can be heavily regulated and sometimes not permitted for foreigners unless the development has special approval.]
These protections remain in place until the new real-estate regulations are officially published and implemented.
Understanding the New Saudi Real-Estate Law (Effective 2026)
Saudi Arabia has introduced a major reform allowing foreigners to own property in various parts of the Kingdom. The new law aims to support investment, long-term residency, and economic development. It is expected to come into full effect in January 2026.
However, the new law does not automatically override existing protections for Makkah and Madinah. The two holy cities have their own legal framework due to their sacred status.
What we know so far:
- Foreigners may be allowed to own property in designated zones around the country.
- The government has confirmed that “special conditions” will apply specifically to Makkah and Madinah.
- The exact rules for the holy cities have not yet been released.
This means no one currently knows whether freehold ownership in Makkah or Madinah will ever be opened to non-Saudis.
A Warning About Misleading Advertisements
With the announcement of the new law, some companies have started advertising:
- “Freehold apartments in Makkah for foreigners”
- “Foreign buyers can now own property near the Haram”
- “Invest in Madinah—ownership now open!”
These claims are false and potentially deceptive.
Important:
There is currently no legal option for non-Saudis to buy freehold property in Makkah or Madinah.
Until official regulations are issued, all ownership claims should be treated with extreme caution.
To protect yourself from scams:
- Do not pay deposits.
- Do not sign “reservation agreements.”
- Always verify the exact property boundary (many developments use “Makkah” even when outside the sacred limits).
- Consult a Saudi legal professional.
What Options Are Available for Foreigners?
While freehold ownership inside Makkah and Madinah remains prohibited, there are limited alternatives depending on your circumstances:
• Long-Term Lease Agreements (Not Ownership)
Some projects offer long leaseholds (e.g., 25–50 years). These do not grant ownership rights.
• Investment Through a Saudi Company
Foreign investors may be able to participate in commercial projects through a registered Saudi entity, subject to ministry approvals.
• Property Outside the Holy City Boundaries
Areas outside the haram boundary may be accessible, but this varies widely and requires precise location verification.
• Real Estate in Other Saudi Cities
Cities such as Riyadh, Jeddah, and NEOM will offer much clearer pathways for foreign property ownership once the law takes effect.
What May Change in 2026?
The 2026 reforms are promising but incomplete without the official implementing regulations. These regulations will clarify:
- Will any areas of Makkah or Madinah be accessible to foreigners?
- Will only leasehold rights be available?
- Will there be designated investment zones?
- What residency or visa conditions will apply to foreign buyers?
- What protections remain for the sacred areas?
Until these details are published, the current restrictions remain fully in force.
Practical Advice for Anyone Interested in Buying Property
To protect your investment and avoid misinformation, follow these guidelines:
- Ignore any advertisements offering “freehold in Makkah/Madinah.”
- Wait for official announcements from the Saudi ministries before making commitments.
- Seek proper legal guidance before signing any contract in Saudi Arabia.
- Check exact boundaries—“Makkah” in ads often refers to wider outskirts, not the holy city itself.
- Stay informed through reliable, verified sources.
What You Need to Know
Despite the exciting new property laws in Saudi Arabia, Makkah and Madinah remain closed to foreign freehold ownership. Their sacred status means they operate under a unique legal system that protects the sanctity of the holy cities.
Until the government releases clear regulations, non-Saudis cannot buy property—freehold or otherwise—within the official boundaries of Makkah or Madinah.
