Friday, July 25, 2025
Saudi Arabia published a new Law permitting Foreigners to Own Property
After receiving Cabinet approval earlier this month, Saudi Arabia has now formally published the complete contents of its new law governing the ownership of real estate by individuals who are not Saudi nationals.
This comprehensive regulation, which was published in Friday's official newspaper, Umm Al-Qura, represents a significant change to the way the Kingdom handles foreign ownership of property and will be in force 180 days after its publication. Trending: Unified GCC Visa: Your Gateway to enter 6 Gulf countries
Individuals, businesses, and nonprofits that are not Saudi Nationals are now able to own property or acquire other real estate rights within specific geographic zones that will be decided by the Cabinet.
A variety of regulations and limits will be imposed according to geography, property type, and usage on these rights, which include access (beneficial use), leaseholds, and other real estate interests.
Prior to the new regulation taking effect, the legislation maintained all legally established real estate rights for non-Saudis.
Except for certain situations involving particular Muslim owners, it makes it quite clear that ownership is still forbidden in some areas and places, especially in Makkah and Madinah.
The law specifies that the Council of Ministers must, after consulting with the Real Estate General Authority and receiving approval from the Council of Economic and Development Affairs, determine the maximum percentage of foreign ownership, the length of time that access rights can be used, and the zones that can be owned by foreigners.
For personal housing purposes, foreign nationals lawfully residing in Saudi Arabia are allowed to possess one residential property outside of prohibited regions. This does not apply to Makkah and Madinah. Join Saudi Expatriates channel on Telegram
There are provisions for corporate ownership in the regulation as well. Companies that are not publicly traded and have foreign shareholders, investment funds, and special-purpose corporations with a valid license can buy property anywhere in the Kingdom, including Makkah and Madinah, as long as it's for business purposes or staff housing.
The Saudi financial market norms also permit listed corporations and investment vehicles to purchase property.
The Foreign Ministry must approve the purchase of real estate by diplomatic missions and international organizations for official use and representative housing, and there must be corresponding requirements in place.
For the sake of compliance, it is necessary for non-Saudi entities to register with the relevant official prior to purchasing property.
Only upon official registration in the national real estate registry can ownership or actual rights become valid.
For real estate transactions involving parties other than Saudi nationals, the law establishes a fee of up to 5% and specifies a system of penalties for violations. See Also: What is the Wage Protection Plan of Saudi Arabia?
In extreme circumstances, including when information is intentionally misrepresented, the offender may face fines of up to SR10 million and, after deductions, the sale of their property at public auction.
To investigate violations and administer sanctions, the Real Estate General Authority will establish a specialized committee. You have 60 days from the date of the committee's decision to file an appeal with the administrative courts.
Furthermore, the law eliminates a previous regulation that banned people of the GCC from possessing property in Makkah and Madinah, thereby unifying regulations for all entities outside of Saudi Arabia.
Within six months, the executive regulations will be released, outlining the procedures for implementation and defining the boundaries and circumstances.
The new law has replaced the old legislation on foreign ownership of property, which was adopted under Royal Decree No. M/15 in 2000. Recommend: Saudi Arabia's crackdown on illegal housing splits
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| Saudi Arabia published a new Law permitting Foreigners to Own Property |
