Saudi Arabia's 2026 decisions: Foreign property ownership and selective tax
With the dawn of the new year 2026, the Kingdom of Saudi Arabia embarks on a pivotal phase in its development journey, implementing a series of bold decisions and legislation that impact the very core of the economy and social life. These transformations are not merely administrative procedures, but rather well-considered strategic steps stemming from the objectives of "Vision 2030," which aims to diversify income sources, raise the quality of life, and enhance the Kingdom's position as a global logistics and investment hub.
A qualitative leap in real estate investment: foreign ownership
In a historic step aimed at deepening economic openness, the updated regulations for non-Saudi property ownership have come into effect. This decision allows foreign individuals and companies to own residential, commercial, and industrial properties in most of the Kingdom's cities, while respecting the religious and geographical significance of cities such as Mecca and Medina.
This decision comes in the context of regional competition to attract foreign direct investment, and is expected to generate a significant boost to the construction and real estate development sector, contributing to the creation of new job opportunities and increasing the real estate sector’s contribution to the gross domestic product.
Selective tax update: Health first
In the area of public health, January 2026 will see the implementation of the new selective tax mechanism on sweetened beverages. The system will shift from a fixed 50% tax to a "volumetric" model that accurately measures the sugar content per 100 milliliters. This smart change aims to incentivize manufacturers to reduce the sugar content in their products, directly benefiting consumers and helping to curb diabetes and obesity, as well as boosting the country's non-oil revenues.
Wage protection and digital transformation
In line with efforts to regulate the labor market, paying domestic workers' salaries electronically through approved channels such as the Musaned platform and digital wallets is now mandatory. This measure eliminates undocumented cash transactions, guarantees the rights of both workers and employers, reduces labor disputes, and improves the Kingdom's ranking in international labor rights indices.
National Address: Logistical Accuracy is Binding
As part of efforts to enhance the logistics infrastructure, no postal shipments will be accepted without a precise national address for the recipient. This decision supports the rapid growth of e-commerce in the Kingdom, ensures fast and efficient delivery, enhances the end-user experience, and supports the Kingdom's ambition to become a global logistics hub connecting three continents.
