Dubai vs Riyadh for Foreign Property Buyers in 2026
Published on: June 30, 2026
For most of the last two decades, there was only one obvious answer to "where in the Gulf can a foreigner buy property?" That answer was Dubai. In 2026, it has company. Saudi Arabia's new foreign ownership law came into force in January, and Riyadh is suddenly part of the conversation for international buyers for the first time in a serious way.
These are two very different propositions, though. One is a mature, liquid, foreigner-optimised market with a twenty-year track record. The other is a market that has just opened, with enormous state-backed momentum behind it but rules that were still being finalised as the law took effect. This is a comparison of the two frameworks and the trade-offs between them, not a recommendation to buy in either. Property decisions of this size belong with you and your own professional advisers.
At a glance
| Factor | Dubai (UAE) | Riyadh (Saudi Arabia) |
|---|---|---|
| Foreign freehold ownership | Yes, since 2002, in designated zones | Yes, new law in force January 2026, in approved zones |
| Market maturity | Mature, liquid, transparent | Just opened, rules still settling |
| Headline transaction cost | DLD transfer fee 4%; ~7% to 9% all-in | Transfer fee up to 5%; analyses suggest ~10% all-in |
| Annual property / income tax | None locally | No personal income tax; property fees still settling |
| Residency from buying | Yes (Golden Visa at AED 2M) | No, the law grants no residency |
| Liquidity / resale | Deep, active resale market | Thin track record for foreign individuals |
Saudi Arabia's framework was still being implemented in 2026. Verify the current REGA rules for your specific situation before acting.
The headline difference: mature market vs brand-new opening
Dubai has allowed foreigners to own freehold property since the landmark Freehold Law of 2002, with designated freehold zones formalised in 2006. Two decades on, the result is one of the most international and transparent property markets in the world: dozens of designated zones, a deep pool of developers, brokers, lawyers, and mortgage lenders used to dealing with non-residents, official registries you can check, and the ability to buy remotely and quickly.
Riyadh is the opposite end of the maturity curve. Saudi Arabia's Law of Real Estate Ownership by Non-Saudis (issued by Royal Decree M/14 in July 2025) came into force in January 2026, replacing a restrictive law dating from 2000. For the first time, non-Saudi individuals, not just companies, can own property, within a framework built around designated zones. The upside is genuine first-mover positioning in a market backed by Vision 2030 and a vast development pipeline. The catch is that, as the law took effect, the detailed implementing regulations, the exact maps of where foreigners can buy, the ownership caps, and the fee mechanics were still being rolled out by the Real Estate General Authority (REGA). It is an opening market, not a settled one.
Who can buy, and where
Dubai. Any nationality can buy freehold in a designated zone, with no residency requirement and no local sponsor. You can buy as a complete non-resident, managing it from abroad, with a passport. Outside the freehold zones, foreigners are generally limited to leasehold or usufruct rights of up to 99 years. The popular zones (Dubai Marina, Downtown, Palm Jumeirah, Business Bay, JVC, Dubai Hills, and many more) are well established and clearly defined.
Riyadh / Saudi Arabia. Under the new law, non-Saudis may acquire property or property rights only within geographic zones approved by the Council of Ministers, based on REGA's recommendations. Riyadh and Jeddah are widely expected to be focal points for foreign investment. Makkah and Madinah remain subject to special restrictions, with a narrow opening for Muslim non-Saudis under specific conditions. Foreign residents of the Kingdom can also own one residential property for personal use outside the designated zones (excluding the two holy cities). Because the precise zone boundaries and conditions were still being published as the law came into force, the single most important step before acting on anything in Saudi Arabia is to verify the current REGA designations for the specific area you are considering.
What it costs to transact
Dubai. The main transaction cost is the Dubai Land Department (DLD) transfer fee of 4% of the purchase price, a one-time charge at transfer, plus a registration fee (a few thousand dirhams) and VAT on that fee. Adding broker and conveyancing costs, total closing costs typically land around 7% to 9% of the price.
Riyadh. The new law authorises REGA to levy a real estate transfer (disposal) fee of up to 5% of the property's value on transactions by non-Saudis. This sits alongside Saudi Arabia's existing real estate transaction tax, and several market analyses suggest foreign buyers should budget for transaction taxes and fees in the region of around 10% in total, though the exact treatment was being finalised in the implementing regulations, so this figure should be confirmed against current rules rather than taken as fixed.
The tax picture once you own
This is where Dubai's long head start is clearest.
Dubai / UAE. There is no annual property tax, no personal income tax on rental income earned locally, no capital gains tax on a sale, no inheritance tax, and no wealth tax. (Your home country may still tax you on this income or these gains; that obligation does not disappear.) It is one of the most tax-light environments for property ownership anywhere.
Riyadh / Saudi Arabia. Saudi Arabia also does not levy a personal income tax in the way most Western countries do, which is part of the appeal. But the property-specific costs (the transfer/disposal fee, the transaction tax, registration, and any conditions attached to foreign ownership in a given zone) are the relevant numbers, and they were still settling. Again: verify the current, specific position before relying on any figure.
Residency
Dubai. Property ownership ties directly into residency. A qualifying purchase of AED 2 million (roughly USD 545,000) supports a 10-year renewable Golden Visa, which now also accepts off-plan and mortgaged property. There is also a shorter property-investor visa (for which Dubai removed the minimum value for sole owners in April 2026) and a retirement visa route for buyers aged 55+. This is a clear, well-trodden, codified link between buying and the right to live there. See our guide to the UAE Golden Visa through property.
Riyadh / Saudi Arabia. The new ownership law is explicit that it does not grant additional residency privileges beyond what is defined by law, and does not affect separate frameworks such as Saudi Arabia's Premium Residency Program. In other words, in 2026 buying property in Saudi Arabia is not, in itself, a residency route in the way it is in Dubai. If residency matters to you, treat it as a separate question with separate criteria.
Liquidity, transparency, and execution risk
Dubai offers deep liquidity, transparent registered-transaction data (through the DLD, RERA, and Ejari systems), escrow protection on off-plan purchases, and an entire services industry built around foreign buyers. If you want to sell, there is a large, active resale market. Non-Muslims are also advised to register a will (for example through the DIFC Wills Service) so that a property is distributed according to their wishes rather than default succession rules.
Riyadh carries the profile of an early-stage market: potentially significant first-mover upside, driven by Vision 2030, major projects, and strong inbound foreign direct investment, but with a much thinner track record for foreign individual ownership, less established resale liquidity for non-Saudis, and meaningful execution and regulatory risk while the rules bed in. All transactions must be registered (through the official "Saudi Properties" digital portal), and the framework comes with strict penalties for misrepresentation. That formality is a feature, but it also signals how new and tightly controlled the system is. For the wider Saudi context, see our guides to Saudi Arabia's foreign property ownership law and the Saudi mega-projects behind the demand.
How to think about the choice
There is no universally "better" market here; they suit different risk appetites and goals.
- Dubai tends to fit buyers who want a proven, liquid, low-friction market with a clear residency link and a tax-light ownership environment, and who are comfortable that much of the easy early appreciation in well-known zones has already happened.
- Riyadh tends to interest buyers who want first-mover exposure to a market that has just opened and is backed by extraordinary state investment, and who can tolerate the uncertainty, lower liquidity, and still-settling rules that come with being early.
Whichever way you lean, the same discipline applies: verify the current rules for your specific situation, use independent legal advice on the ground, confirm the costs in writing, and never commit on the basis of a headline figure that may have changed since it was published. You can browse live listings across the UAE and 50+ other markets on JanusHermes.
Frequently asked questions
Can foreigners buy property in Saudi Arabia in 2026?
Yes. As of January 2026, a new law allows non-Saudi individuals and companies to own property within zones approved by the authorities. The exact eligible areas, caps, and fees are set by REGA and should be checked for the latest position.
Can foreigners buy property in Dubai?
Yes, and they have been able to since 2002. Any nationality can own freehold in designated zones with no residency requirement.
Is Dubai or Riyadh cheaper to buy in?
It depends entirely on the property and area, and the markets are not directly comparable. On transaction costs, Dubai's headline DLD fee is 4%; Saudi Arabia's new framework points toward higher combined transaction costs for foreigners, but those were still being finalised in 2026.
Does buying property get me residency in either city?
In Dubai, yes: a qualifying purchase supports residency visas, including a 10-year Golden Visa at AED 2 million. In Saudi Arabia, no: the new ownership law specifically does not grant residency privileges.
Which is the safer market for a foreign buyer?
Dubai is the more mature, liquid, and transparent market with a long track record. Riyadh offers first-mover potential but carries the higher uncertainty of a market that has only just opened to foreign individuals.
A note from JanusHermes
We compare these two because 2026 is the first year the question is even live: until the Saudi law took effect, Dubai was the Gulf's only real answer for foreign buyers. If your shortlist is wider, see Dubai vs London and Dubai vs Turkey. JanusHermes is a cross-border real estate platform, not a legal, tax, or immigration adviser.
Disclaimer. This article is general information, not legal, tax, financial, or investment advice, and it is not a recommendation to buy in either market. Property laws, taxes, fees, and visa rules change, and Saudi Arabia's framework in particular was still being implemented in 2026. Always confirm the current position with qualified local lawyers and licensed advisers in the relevant jurisdiction before committing to a purchase. JanusHermes accepts no liability for any action taken in reliance on this content.
A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.