Saudi Arabia's 2026 decisions: Foreign ownership of real estate and tax amendments
With the dawn of 2026, the Kingdom of Saudi Arabia embarks on a new and decisive phase in its development journey, implementing a package of strategic decisions and legislation that impact the very core of the economy and society. These steps culminate years of planning within the framework of Vision 2030 , aiming to create a flexible legislative environment that keeps pace with global changes and strengthens the Kingdom's position as a global logistics and investment hub.
A new era in real estate investment: foreign ownership
In a move considered the boldest of its kind to promote economic openness, the updated regulations for non-Saudi property ownership have come into effect. This decision is not merely a legal amendment, but a strategic shift aimed at attracting foreign capital and global talent to settle in the Kingdom. The regulations allow foreign individuals and companies to own various types of real estate (residential, commercial, and industrial) in most of the Kingdom's cities, which will positively impact the real estate market and the construction sector.
Despite this openness, the Saudi legislator maintained religious and sovereign privacy, as controls that prevent ownership within the boundaries of the cities of Mecca and Medina continued, with special regulations for areas such as Riyadh and Jeddah, thus balancing economic openness with the preservation of national identity and holy sites.
Beverage tax reform: Health first
In the realm of public health, January 2026 will see the implementation of the new selective tax mechanism on sweetened beverages. The shift from a fixed rate (50%) to a tiered, volumetric model based on the amount of sugar per 100 milliliters reflects a maturing of the Kingdom's health policies. This measure directly aims to combat chronic diseases such as diabetes and obesity, incentivizing manufacturers to reduce the sugar content in their products and offering consumers healthier options, thus contributing to the Quality of Life Program.
Wage protection and digital transformation
As part of efforts to regulate the labor market and protect rights, paying domestic workers' salaries electronically through approved channels such as the "Musaned" platform is now mandatory. This decision eliminates undocumented cash transactions, guarantees the rights of both workers and employers, improves the Kingdom's ranking in international labor rights indices, and reduces labor disputes.
In parallel, the decision to mandate a national address for postal shipments comes into effect, serving as a cornerstone in developing the logistics infrastructure. This measure is essential to support the tremendous growth in the e-commerce sector, ensuring fast and accurate delivery through advanced government digital platforms such as "Absher" and "Subul.".
