The updated system for non-Saudis owning property is one of the most prominent transformations. It aims to organize the ownership of real estate and real rights by individuals and foreign companies within a clear and transparent legal framework, enhancing investor confidence and increasing the competitiveness of the real estate market. The system includes allowing foreign ownership in commercial, industrial, and agricultural sectors in various cities and regions of the Kingdom. It also organizes residential property ownership within specific geographical areas determined by a Cabinet decision, with special regulations for residents within the Kingdom. The system stipulates a fee not exceeding 5% of the real estate transaction value for non-Saudis, ensuring market sustainability and balance, according to the Saudi General Authority for Real Estate.
Opening the real estate market to foreigners represents a pivotal transformation within the objectives of “Saudi Vision 2030”, allowing non-Saudis to own property in major urban and investment cities like Riyadh and Jeddah, in addition to Mecca and Medina, with the exception of non-Muslims owning within the holy cities’ boundaries. Ownership is not limited to residential properties but also includes commercial, agricultural, industrial properties, and development lands within mega projects. This is supported by the launch of the “Saudi Real Estate” portal as a unified platform for transactions, setting foreign ownership rates in projects between 70% and 90% to ensure balance. This step contributed to the issuance of more than 130 foreign investment licenses recently.
The new investment system and its executive regulations will take effect at the beginning of 2026, enhancing a fair and stimulating investment environment based on complete equality between local and foreign investors in rights and opportunities, ensuring protection of investments from expropriation or confiscation except through legal procedures and fair compensation.
On the environmental front, the “Green Saudi Initiative” continues its efforts to reduce carbon emissions, combat desertification, and protect terrestrial and marine ecosystems, reflecting the Kingdom’s commitment to its long-term climate and development goals.
Among regulatory updates, a new mechanism for calculating the excise tax on sweetened beverages will begin in 2026. The tax will be determined based on the adjusted sugar content in the beverage, according to Saudi “Argaam”. Under the decision approved by the Gulf Cooperation Council’s Financial and Economic Cooperation Committee, beverages sweetened only with artificial sweeteners and without added sugar, as well as low-sugar beverages with less than 5 grams per 100 milliliters, are exempt from any tax. A tax of 0.79 Riyals is imposed on medium-sugar beverages with sugar content between 5 and 7.99 grams per 100 milliliters, while the tax rises to 1.09 Riyals on high-sugar beverages containing 8 grams or more per 100 milliliters.
