‘Foreigners Can Now Own Property in Saudi Arabia’

News Desk 

Riyadh: Saudi Arabia has officially enacted a sweeping new law regulating real estate ownership by non-Saudis, marking a significant shift in the Kingdom’s approach to foreign investment in the property sector.

Published in the official gazette Umm Al-Qura on Friday, the law will come into force 180 days from its publication date. It grants non-Saudis — including individuals, companies, and non-profit organizations — the right to own or acquire real rights over property within designated zones to be determined by the Cabinet.

E Defined Limits

Under the law, foreign nationals may obtain various real estate interests such as ownership, leaseholds, and usufruct (right of use), with restrictions based on property type, use, and geographic location. However, ownership will remain off-limits in specific zones — particularly Makkah and Madinah — except under strict conditions applicable only to individual Muslim owners.

One notable provision allows foreign residents in the Kingdom to own a single residential property outside restricted areas, solely for personal housing use.

Ownership

The new framework broadens corporate access to Saudi real estate. Unlisted companies with foreign shareholders, investment funds, and licensed special-purpose vehicles may now acquire property throughout the country — including Makkah and Madinah — provided the property is used for operational purposes or staff housing.

Listed companies and financial vehicles will be subject to rules set by Saudi financial regulators, while diplomatic missions and international organizations can acquire official-use property with Foreign Ministry approval and reciprocity.

Regulatory Oversight

The law mandates that all foreign buyers and entities must register with the relevant authorities prior to acquiring property. Real estate ownership or rights will only be legally recognized after being recorded in the national real estate registry.

A real estate transfer fee of up to 5% will apply to transactions involving non-Saudis. Violations of the new law can result in fines up to SR10 million, with severe cases — such as fraudulent claims — leading to forced sale of the property and proceeds reverted to the state.

An enforcement committee under the Real Estate General Authority will handle investigations and penalties, with the right of appeal through administrative courts within 60 days.

Repeal Restrictions

The new legislation supersedes the 2000 Royal Decree No. M/15 and repeals earlier restrictions on Gulf Cooperation Council (GCC) citizens from owning property in Makkah and Madinah, creating a unified legal framework for all non-Saudi entities.

The executive regulations, including geographic boundaries and specific conditions for foreign ownership, are expected within six months.

— Saudi Gazette