Saudi Arabia Opens Property Ownership to Foreigners—Even in Medina

26 July 2025
In a historic and controversial policy shift, Saudi Arabia has officially opened its real estate market to foreign nationals, allowing them to own property in major cities such as Riyadh, Jeddah, and Dammam. Most notably, the ban on foreign ownership in the holy city of Medina has been lifted, enabling even non-Muslims to acquire real estate there—something that was previously prohibited by religious law.

End of a Sacred Red Line?
The decision, approved by the Council of Ministers and led by Crown Prince Mohammed bin Salman, aims to boost foreign investment and modernize the real estate sector. However, the removal of legal barriers in Medina has shocked religious communities and raised concerns over the city’s spiritual sanctity and identity.

Interestingly, a prior public consultation conducted on an official government platform showed 100% opposition to the policy, but the law was passed regardless of the result—fueling further public debate.

A New Regional Rivalry Begins
While countries like Oman, Iran, and Egypt have been enhancing their appeal to foreign investors, Saudi Arabia’s bold move introduces a new era of competitive openness, potentially shifting investment flows in the region.

With megaprojects underway and foreign ownership now allowed—even in religiously sensitive areas—Saudi Arabia is positioning itself as a modern and transparent economic hub.

Message for Iranians in Oman
For Iranians living in Oman and exploring regional investment options, this development offers two key takeaways:

• On one hand, Oman’s own investment policies may evolve to remain competitive and appealing.
• On the other hand, the shift in Medina reflects a deeper cultural and religious transformation that deserves careful reflection—beyond the economics.