A new Saudi law that reshapes how non-Saudis can own real estate took effect on January 22, 2026, and its provisions carry direct consequences for the companies that house and serve pilgrims in Makkah and Madinah. As authorities published the regulations guiding the framework this year, Hajj and Umrah operators have been examining what the rules mean for accommodation, staff housing and investment near the holy sites.

According to Saudi Gazette, the Law of Real Estate Ownership and Investment by Non-Saudis was issued in the official gazette on July 25, 2025, and entered into force in early 2026. International law firms tracking the reform, including White & Case, describe it as a landmark opening of the Kingdom's property market, though one that keeps firm guardrails around the two holiest cities.

Holy Cities Remain Restricted

The longstanding principle that Makkah and Madinah are not open to general foreign ownership remains in place. Under the new law, the two cities are treated as sensitive areas where property rights for non-Saudis are limited and tied to specific conditions rather than offered broadly.

As a baseline, ownership of real estate in Makkah and Madinah is reserved for Muslims. The reform preserves this requirement, meaning that individuals acquiring property in the holy cities must be Muslim. This continuity reflects the special religious status of the two cities and the care authorities take in regulating activity around the holy mosques.

Narrow Openings for Companies

The law does create defined pathways for certain companies. According to legal analyses of the framework, foreign-owned businesses registered in Saudi Arabia may hold property in Makkah and Madinah where it is necessary to conduct their operations or to provide housing for their employees and staff.

Separately, companies listed on the Saudi stock exchange may own and hold rights over real estate in the Kingdom, including in the two holy cities, in line with the rules of the Capital Market Authority. Together, these provisions mean that an accredited Hajj or Umrah service company operating in Makkah could, under the conditions set out in the regulations, secure property to support its operational needs rather than being shut out entirely.

The distinction matters for the pilgrimage sector. As reported by Hajj Reporters, the clearer ownership rules for foreign companies arrive at the same time Saudi authorities are pushing operators toward integrated, comprehensive service packages and longer-term planning for accommodation in the holy cities.

Why It Matters for the Pilgrimage Sector

Accommodation near the Grand Mosque and the Prophet's Mosque is among the most significant costs in any Hajj or Umrah package. Rules that govern who can own and operate property in these areas shape the supply of lodging available to pilgrims and the companies that arrange it.

By giving licensed foreign-owned companies a defined route to hold property for operations or staff housing, the framework could encourage longer-term investment in pilgrim services while keeping individual ownership of the holy cities reserved for Muslims. Authorities have stressed that the executive regulations set out the precise conditions, licences and approvals required, and that activity must remain within legitimate business purposes.

Practical Guidance

For pilgrims and operators following these developments, a few points are worth keeping in mind:

  • This is a regulatory framework, not a sales offer. The law governs companies and licensed entities under specific conditions; it does not open general property sales in Makkah or Madinah to foreigners.
  • Individual ownership in the holy cities remains for Muslims. The Muslim-only requirement for personal property ownership in Makkah and Madinah is preserved.
  • Verify accreditation. Pilgrims booking accommodation should still rely on Hajj and Umrah companies licensed by their national authorities and recognised by the Saudi Ministry of Hajj and Umrah.
  • Seek professional advice for investment questions. Companies considering property in the Kingdom should consult qualified Saudi legal counsel, as the executive regulations define the licences and approvals involved.

The reform reflects Saudi Arabia's broader effort to open its economy to foreign investment while maintaining the distinct legal treatment of its two holiest cities. For the pilgrimage sector, it adds clarity to a question that has long shaped how services around the holy mosques are built and financed.