Introduction: The Gates of the Two Holy Cities Open to Investment... With Rules Befitting Their Sanctity
For long decades, owning property in Makkah and Madinah was a distant dream for millions of Muslims around the world. How many Muslims in Indonesia, Turkey, Egypt, or Pakistan wished to own a home near the Haram to stay in whenever they came for Umrah or Hajj? The previous law closed this door completely to non-Saudis, allowing them to acquire property in the two Holy Cities only through inheritance.
Today the landscape has changed fundamentally. With the new Non-Saudi Real Estate Ownership Law entering into force in January 2026, and the geographical zones approved in June 2026, the door has opened for the first time in modern history for non-Saudi Muslims to own real estate in Makkah and Madinah — but within precise rules and carefully designated districts that preserve the two cities' sanctity and religious character.
In this comprehensive guide we take you on a complete journey: we start with the general picture of foreign ownership in Saudi Arabia (who can own and how), then move to the detailed discussion of Makkah and Madinah: why do they have a special status? Who exactly can own there? And what are the approved districts and zones by name in each city? Keep this article — it is your complete reference on this important subject.
First: The New Non-Saudi Ownership Law — The General Picture
Before talking about Makkah and Madinah, you must understand the general framework the whole story belongs to:
What Is the New Law?
The Non-Saudi Real Estate Ownership Law was issued by Royal Decree No. (M/14) in July 2025 and officially entered into force on January 22, 2026, replacing the old law issued in 1421 AH. The executive regulations were then issued and the geographical zones approved in June 2026, completing the pillars of the new framework.
What Is the Core Idea of the Law?
The new law does not open the entire Kingdom to foreign ownership. Instead, it adopts the principle of "designated geographical zones": the Council of Ministers and the Real Estate General Authority designate specific areas (around 170 geographical zones) where non-Saudis are allowed to own, distributed across Riyadh, Jeddah, Makkah, Madinah, AlUla, and other cities, with defined ownership percentages, types of rights, and durations for each zone.
Why Was This Law Issued at All?
The law is part of Saudi Vision 2030, which aims to diversify income sources, attract foreign investment into the real estate sector, increase real estate supply, and balance the market. The Kingdom chose a deliberate, gradual approach rather than liberalizing the market all at once — protecting traditional residential neighborhoods from speculation and respecting religious and cultural privacy.
Second: Who Can Own in General? (The Five Categories)
The executive regulations defined the categories benefiting from the law, five main ones:
1. The Legal Resident
May own property within the approved zones, and may also own one home (first residence) outside the designated zones — with the exception of Makkah and Madinah, which this exemption does not cover.
2. The Premium Residency Holder
Enjoys broader privileges: full ownership within the approved zones, and usufruct rights of up to 99 years outside them — holding the strongest individual position in the two Holy Cities, as we will see later.
3. The Non-Resident (Investor from Outside the Kingdom)
For the first time, a non-resident individual outside Saudi Arabia can own within the approved zones after meeting three requirements: obtaining an approved digital ID from the Ministry of Interior (via the Absher platform), opening a bank account in the Kingdom in their name, and registering a Saudi phone number linked to their digital ID.
4. GCC Citizens
Enjoy full ownership within the approved zones in accordance with the law and its regulations.
5. Non-Saudi Companies and Entities
Including foreign companies and local companies with foreign ownership, investment funds, and non-profit entities — under conditions including: registration with the Ministry of Investment, disclosure of owners and ultimate beneficiaries, appointing a legal representative, and reporting any ownership change of 5% or more within 15 days.
Third: How to Own, Step by Step
The whole process is digital and organized through the "Saudi Real Estate" platform of the Real Estate General Authority:
The Steps in Order
First: prepare your basic requirements (residency or a digital ID from the Ministry of Interior, a Saudi bank account, a Saudi mobile number). Second: access the Saudi Real Estate platform and browse the approved geographical zones map to confirm the targeted property falls within a permitted zone. Third: submit an eligibility verification request through the platform. Fourth: obtain the "Ownership Eligibility Certificate" — the document proving your legal right to purchase. Fifth: complete the purchase and electronic conveyance, paying exclusively through electronic payment methods approved by the Saudi Central Bank.
Essential Conditions You Must Not Overlook
The property must be officially registered in the Real Estate Registry, full data disclosure is required, and the property's coordinates must be verified on the official map — not just the district name or the listing's description — because zones are defined with precise geospatial boundaries, not general labels.
Fourth: Fees, Taxes, and Penalties
The Imposed Fees
The regulations imposed a fee of 2% of the transaction value on non-Saudi real estate disposals in four main cities: Riyadh, Jeddah, Makkah, and Madinah, while the fee was set at zero in other areas. There are 10 exempt cases, including: properties resulting from estate division, transfers under final court rulings, and transfers to endowments. This fee is in addition to the standard 5% Real Estate Transaction Tax applied to everyone.
Penalties and Fines
The law is strict with violators: escalating fines of up to 10 million riyals for anyone providing false information to obtain ownership, the possibility of forced sale of illegally owned property, fines of up to 4 million riyals for companies providing misleading information or failing to report ownership changes within the legal period, with correction periods ranging from 10 to 180 days depending on the violation.
Fifth: Why Do Makkah and Madinah Have a Special Status?
Now we reach the heart of the matter. To understand the special rules for the two cities, you must understand the religious and historical context:
A Status Like No Other
Makkah and Madinah are not ordinary cities — they are the holiest places on earth for around two billion Muslims worldwide. Makkah is home to the Grand Mosque and the Holy Kaaba, the qibla of Muslims, and Madinah is home to the Prophet's Mosque. The two cities receive millions of pilgrims, Umrah performers, and visitors annually, and entry to Makkah itself is restricted to Muslims. This unique religious character requires treating any real estate activity there with entirely different standards than any other city in the world.
What Was the Situation Under the Old Law?
The previous law (issued in 1421 AH) categorically prohibited non-Saudis from acquiring ownership, easement, or usufruct rights over any property within the boundaries of Makkah and Madinah by any means other than inheritance, with a narrow exception for endowments to a Saudi entity under Sharia controls. Even foreign companies and Saudi companies with foreign ownership were covered by the prohibition, and notaries were barred from documenting any violating transaction.
What Changed in the New Law?
The new law made a historic shift: instead of total closure, it adopted the principle of controlled opening. Ownership in the two cities became possible but within three protective walls: restricting individual ownership to Muslims only, confining ownership to carefully approved geographical zones, and direct supervision by specialized bodies — the Royal Commission for Makkah City and Holy Sites and the Madinah Region Development Authority — ensuring every real estate development aligns with the sanctity of the place.
Sixth: Who Exactly Can Own in Makkah and Madinah?
This is the most important section of the article, so pay close attention:
Individuals: Muslims Only
The golden rule in the two Holy Cities: the right to own property or acquire real rights there is restricted to Muslim natural persons only. A non-Saudi Muslim (whether a resident, from outside the Kingdom, or a Premium Residency holder) can own within the approved zones after meeting the requirements and obtaining the eligibility certificate. A non-Muslim is not permitted direct ownership in the two cities at all, regardless of their status or residency.
Premium Residency Holders: An Extra Advantage
The Muslim Premium Residency holder enjoys the strongest position: in addition to ownership rights within the approved zones, they can acquire usufruct rights of up to 99 years over properties outside the approved zones within the two cities — an advantage unavailable to other individuals.
Companies: Within the Zones and Under Controls
Companies in which non-Saudis hold shares may own property or acquire real rights within the designated geographical zones in Makkah and Madinah under special controls — opening the door for global real estate development companies to participate in the mega projects around the Two Holy Mosques, under the supervision of the competent authorities.
Inheritance: Remains an Open Path for All
As under the previous law, property transfer through legal inheritance remains a legitimate path to acquiring property in the two cities, and the regulations exempted properties resulting from estate division from the disposal fee.
Seventh: The Approved Zones and Districts in Makkah in Detail
The competent authorities approved specific zones in Makkah where ownership is permitted, concentrated in the major development projects and areas surrounding the Central District:
The Approved Zones in Makkah
Jabal Omar: the largest mixed-use development project directly adjacent to the Grand Mosque, comprising hotel, residential, and commercial towers, with the highest prices (around 104,000 to 110,000 riyals per square meter for luxury units). Makkah Towers: the hotel and residential towers zone in the heart of the Central District. Ajyad Tower: in the Ajyad district adjacent to the Haram from the south. King Salman Gate: the massive development project overlooking the Haram, one of the largest Central District redevelopment projects. Masar Destination: Makkah's largest redevelopment project at a cost exceeding 100 billion riyals, extending along an axis leading to the Haram with hotel and residential units at relatively moderate prices (around 10,000 to 15,000 riyals per meter). Thakher Makkah: a modern hospitality and residential development. Tilal Village, Al-Manar, Sumou District: approved residential and development zones outside the core Central District. Plus the Makkah 1 and Makkah 2 zones defined on the official map.
An Important Note on Prices
Notice the wide price gradient: from around 10,000 riyals per meter in mid-range projects to more than 100,000 riyals per meter for units overlooking the Haram. Proximity to the Grand Mosque is the decisive value factor, giving the Muslim investor diverse options according to budget and goal.
Eighth: The Approved Zones and Districts in Madinah in Detail
In Madinah, the approved zones combine the surroundings of the Central District with modern economic projects:
The Approved Zones in Madinah
Rua Al Madinah: the largest development project east of the Prophet's Mosque, designed to accommodate millions of visitors with hotels, residential units, and world-class hospitality, with prices ranging between 25,000 and 40,000 riyals per square meter. Madinah Downtown: the zone surrounding the Central District of the Prophet's Mosque, the most in-demand for its direct proximity to the Haram. Knowledge Economic City: the modern economic city on Hijrah Road, home to the Haramain train station and focused on the knowledge economy and hospitality. Al-Gharra: one of the districts near the Central District. Al-Mahwa, Dar Al-Hijra, Diyar Al-Maqar: approved residential and development zones around the Central District. Mushraf: the upscale district northeast of the city. Plus the Madinah 1 and Madinah 2 zones defined on the official map.
How to Verify the Zone Precisely?
Never rely on the district name alone or the marketer's word. Zones are defined with precise geospatial coordinates on the official Saudi Real Estate platform map, and part of a district may fall inside the zone while another part falls outside. Verify the property's exact location on the official map before paying any amount, and request the eligibility certificate first.
Ninth: What Does All This Mean for the Market and the Investor? (How to Benefit)
For the Muslim Wanting a Home Near the Two Holy Mosques
For the first time, a Muslim of any nationality can own a residential or hotel unit in their name within approved zones near the Two Holy Mosques — whether for seasonal residence during Ramadan and Hajj, or as a spiritual and material legacy for their children. This alone is a massive market, as large as the devotion of two billion Muslims to these places.
For the Real Estate Investor
Real estate in the two Holy Cities is among the safest property assets in the world in terms of demand: millions of pilgrims and Umrah performers annually means constant demand for housing and hospitality unaffected by traditional economic cycles. Forecasts point to real estate transaction growth of 15 to 20% in the two cities over the next three years as mega projects like Masar and Rua Al Madinah are completed.
For Saudi Property Owners in the Two Cities
The entry of a new segment of Muslim buyers from abroad means a wider demand base for properties within the approved zones, which reflects positively on the value of real estate assets in these zones and their surroundings.
Golden Tips Before Buying
Confirm the property is within an approved zone via the official map, not via advertisements. Obtain the eligibility certificate before any financial commitment. Deal exclusively through approved electronic payment methods — cash payment outside official channels is a violation. Remember that buying property does not automatically grant you residency. And engage a trusted real estate and legal advisor to review contracts, especially in under-construction projects.
Frequently Asked Questions
Can a non-Muslim own property in Makkah or Madinah?
No, individual ownership in the two Holy Cities is restricted to Muslims only — a fixed rule in the law respecting the sanctity of the two cities.
Can a Muslim residing outside Saudi Arabia buy in Makkah and Madinah?
Yes, for the first time — provided the property is within the approved zones, and after obtaining a digital ID from the Ministry of Interior, opening a Saudi bank account, registering a Saudi mobile number, and obtaining the eligibility certificate.
What are the main districts where ownership is allowed in Makkah?
Jabal Omar, Makkah Towers, Ajyad Tower, King Salman Gate, Masar Destination, Thakher Makkah, Tilal Village, Al-Manar, Sumou District, and the Makkah 1 and 2 zones.
What are the main districts where ownership is allowed in Madinah?
Rua Al Madinah, Madinah Downtown, Knowledge Economic City, Al-Gharra, Al-Mahwa, Dar Al-Hijra, Diyar Al-Maqar, Mushraf, and the Madinah 1 and 2 zones.
What fees apply to non-Saudi ownership in the two cities?
A 2% fee on the transaction value (in addition to the standard 5% Real Estate Transaction Tax applied to everyone), with 10 exempt cases including inheritance and estate division.
Does buying property in Makkah or Madinah grant me Saudi residency?
No, property ownership does not grant automatic residency. Premium Residency has its own independent tracks and requirements, including a category tied to real estate investment with specific conditions beyond the scope of this article.
What happens if someone owns property in the two cities in violation of the rules?
The law imposes fines of up to 10 million riyals on anyone providing false information, with the possibility of forced sale of the property — so do not attempt to circumvent the rules in any way.
Conclusion
The 2026 Non-Saudi Real Estate Ownership Law opened a historic new chapter: after decades of total closure, non-Saudi Muslims can now own real estate in Makkah and Madinah — but within a precise formula that preserves the two cities' sanctity: ownership for Muslims only, within zones approved by name and coordinates (most notably Jabal Omar, Masar, and King Salman Gate in Makkah, and Rua Al Madinah, Madinah Downtown, and Knowledge Economic City in Madinah), under the supervision of specialized bodies, with clear fees, controls, and penalties.
For those outside the two Holy Cities, the general framework applies: approved zones in Riyadh, Jeddah, AlUla, and elsewhere, beneficiary categories from the resident to the non-resident foreign investor, and a fully digital path through the Saudi Real Estate platform from the eligibility certificate to electronic conveyance.
The most important rule we close with: in real estate generally, and in the Holy Cities' real estate especially, do not buy based on advertisements and promises — verify the zone and eligibility through official channels, and consult experts. Share this guide with every Muslim who dreams of a home near the Haram, for the right knowledge is the first step toward realizing the dream.
