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The Saudi Real Estate General Authority (REGA) has announced a 2% transaction fee for non-Saudis transferring real estate rights in four major cities: Riyadh, Makkah, Madinah, and Jeddah. The foreign real estate ownership law, which entered into force on January 22, 2026, was recently supplemented by executive regulations published in July 2026. These regulations standardize a 2% fee across all property rights and usage types in the designated cities, aiming to regulate foreign investment while generating state revenue.
This regulatory change could impact foreign investor activity in Saudi real estate markets, particularly in high-demand urban centers. Traders may monitor how the fee affects property transaction volumes and pricing dynamics, as well as broader implications for Saudi Arabia’s economic diversification strategy under Vision 2030. The move also signals a more structured approach to foreign ownership, which could influence investor confidence and market stability.
For the Gulf region, this policy aligns with Saudi Arabia’s efforts to attract long-term foreign capital while maintaining control over land use. Investors should watch for potential ripple effects on neighboring markets and how Saudi real estate developers adapt to the new fee structure. Additionally, the government’s revenue collection mechanisms and enforcement of these regulations will be critical to assess.
