Why the holy cities sit outside the general opening for foreign buyers, which claims to distrust, and how to confirm your position before paying anything.
The non-Saudi ownership law in force since January 2026 treats Makkah and Madinah separately, with stricter conditions than the zones opened elsewhere. That means the general statement 'foreigners can now buy in Saudi Arabia' does not answer the question for either city. What is possible depends on the specific conditions in the implementing regulations, so every offer in the holy cities should be treated as a legal question first and an investment second.
How to test a claim like this
Offers in Makkah and Madinah are marketed with emotional weight, often to buyers abroad who want a home near the Haram or an income from pilgrim demand. Test any claim by asking for the exact regulatory basis on which you, in your category, may own there, the form the ownership takes, and who confirms it. If the answer is a certificate from the developer rather than a reference to the regulations, keep your money.
Myth 1: The 2026 law opened Makkah and Madinah in the same way as other cities.
Reality: The law provides separate, stricter conditions for the two holy cities. The general zone-based opening elsewhere does not carry over automatically, and the conditions that apply are narrower.
How to check it yourself: Read the section of the implementing regulations that deals with the holy cities, or have a licensed adviser summarise it for your category in writing.
Myth 2: A long lease or usufruct deal is the same as owning.
Reality: Arrangements such as long leases, usufruct rights or time-based rights give you use of a property for a period, not title. They can be legitimate products, but their value, transferability and inheritance treatment differ from ownership.
How to check it yourself: Ask what exactly is registered in your name, for how long, and what happens at the end of the term or on your death.
Myth 3: Buying through a Saudi friend is a safe workaround.
Reality: Holding property in someone else's name to get around ownership rules exposes you to legal risk and leaves you without enforceable rights if the relationship fails or the nominee dies. Courts look at who holds title, not at private understandings.
How to check it yourself: Refuse any structure in which your money buys an asset registered to another person without a lawful, documented basis your adviser has approved.
Myth 4: Pilgrim demand guarantees high returns all year.
Reality: Demand in both cities is strong but seasonal, peaking around Hajj, Ramadan and other periods. Hospitality supply has also grown, and operating costs continue when occupancy falls.
How to check it yourself: Ask for occupancy and income by month from an operator, not an annual average, and test your plan on the low months.
Myth 5: The developer handles eligibility, so the buyer does not need to check.
Reality: A developer has an interest in completing the sale. Eligibility is a matter between you and the authorities, and a mistaken assurance from a seller does not make an ineligible purchase valid.
How to check it yourself: Keep eligibility confirmation independent: your adviser, the regulation and, where available, a REGA response.
What this changes in your decision
- Treat any Makkah or Madinah opportunity as a separate legal review before looking at price or returns.
- Establish whether the product is ownership, a lease, a usufruct right or a fund unit, and what that means on exit.
- Reject nominee arrangements entirely, however trusted the nominee.
- Model hospitality income by month and include operator fees and seasonal staffing.
- Compare direct ownership with regulated alternatives, such as listed real estate funds, that may give exposure without the eligibility question.
Domira works with foreign investors on the property side of entering Saudi Arabia: finding land or premises, due diligence, design, construction and asset management. For licensing, tax and legal steps, work with a licensed adviser; we coordinate with yours so the property decision fits the structure you choose.
Frequently Asked Questions
Can a foreign Muslim buy property in Makkah?
Ownership in Makkah is governed by separate, stricter conditions under the non-Saudi ownership framework, and those conditions define who may benefit and how. Being Muslim does not by itself answer the question. Read the conditions in the current implementing regulations, or have a licensed adviser confirm your eligibility in writing, before paying any reservation fee or deposit.
Is a 99-year lease near the Haram the same as ownership?
No. A long lease or usufruct right gives you use of the property for the stated period, and its value falls as the remaining term shortens. Ownership gives you title. Before buying such a product, ask what is registered in your name, whether it can be sold or inherited, and what happens to it when the term ends.
Is it legal to register a Madinah property in a Saudi relative's name?
Registering property in another person's name to avoid ownership conditions is a serious legal risk. You would have no registered rights, and disputes, divorces, debts or deaths can leave you with nothing. If you want exposure to Madinah, ask a licensed adviser which lawful routes exist for your category rather than relying on a private arrangement.
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