An official announcement has been made confirming the bout for the IBF, WBA and WBO titles.
Joshua lost the belts in a shock defeat to Ruiz Jr on June 1 at Madison Square Garden.
The New York venue was in the running to host the rematch, as was Cardiff's Principality Stadium, however Diriyah, where the first Saudi State was established in 1745, saw off the competition.
Saudi Arabian sports authorities are said to be putting up almost $100million (£83million) for the match to be held there. In the UK, the fight will be broadcast on Sky Box Office.
Joshua has been battling for the rematch to be held in the UK, however last week Ruiz claimed he would refuse to fight in the UK following Dillian Whyte's failed drugs test.
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