Conditions of New Law that Allows Non-Saudis to Own Property in Saudi Arabia
A new law in Saudi Arabia has opened up various real estate markets to expats and foreigners, including individuals, companies, and nonprofits.
Important Points:
1. With 15 articles, this law enters into force 180 days following its publication.
2. Property ownership is restricted to specific regions that have been designated by the government.
3. In Makkah and Madinah, land ownership is still limited to only Muslims. See Also: Benefits of Visitors Digital ID
4. Foreign companies, funds, and entities may own property across the Kingdom, including in Makkah and Madinah, under specific conditions.
5. All ownership must be properly registered.
6. When someone who is not Saudi sells or transfers land, they have to pay a fee of up to 5%.
7. Violations can get you fines of up to SR10 million or make you sell your property.
8. The new rule replaces the law from 2000 and aims to make it easier for people from other countries to own property in Saudi Arabia.
Summary: Non-Saudi Real Estate Ownership Law
Article 1 – Key Terms
🔘 Law: This term refers specifically to the Real Estate Ownership Law.
🔘 Authority: The Real Estate General Authority.
🔘 Non-Saudi: Anyone who isn’t a Saudi citizen, including foreign companies and nonprofits. Read: Hefty fines for companies for not insuring their workers and families
Article 2 – General Rules
🔘 Non-Saudis can own property or rights in specific areas decided by the government.
🔘 The government will also set:
🔹 Which areas are open to non-Saudis.
🔹 What types of rights they can have (e.g., ownership, leasing).
🔹 Limits on how much they can own.
🔹 How longcan they lease?.
🔹 Additional rules or restrictions.
🔘 Non-Saudis living legally in Saudi Arabia can own one home outside these zones—except in Makkah and Madinah.
🔘 In Makkah and Madinah, only Muslim non-Saudis can own property.
Article 3 – Foreign-Owned Saudi Companies
🔘 Saudi companies with foreign shareholders can buy property in approved areas, including Makkah and Madinah.
🔘 Additionally, they can own property outside these areas for business purposes or to provide housing for employees, in accordance with regulations..
Article 4 – Listed Companies and Funds
🔘 Publicly listed companies and licensed investment funds can buy property anywhere in Saudi Arabia, including Makkah and Madinah, under financial market rules.
Article 5 – Other Laws Still Apply
🔘 This law doesn’t override:
🔹 The Premium Residency Law.
🔹 Special rights for GCC citizens.
🔹 Any other law gives more favorable rights.
Article 6 – No Extra Privileges
🔘 Owning property does not give a non-Saudi any extra rights beyond what the law allows.
Article 7 – Diplomats and Organizations
🔘 Embassies and international organizations can own buildings for official use, if allowed by their treaties and with approval from the Ministry of Foreign Affairs. Trending: Qiwa updates "Absent From Work" conditions
Article 8 – Registration Required
🔘 Foreign entities must register before buying property.
🔘 Ownership is only valid if recorded in the official Real Estate Register.
Article 9 – Disposal Fee
🔘 Non-Saudis must pay a fee (up to 5%) when selling or transferring property rights.
Article 10 – Penalties
🔘 Breaking the law may result in:
🔹 A warning.
🔹 A fine (up to 5% of property value, max SR10 million).
🔹 The severity of the penalty depends on the nature of the violation.
Article 11 – Violation Committees
🔘 Committees of legal experts will handle violations and fines.
🔘 Their decisions can be appealed in court within 60 days. Like and Follow Saudi Expatriates
Article 12 – False Information
🔘 Lying to gain property rights leads to:
🔹 A fine (same as above).
🔹 Forced sale of the property.
🔘 Offenders may get back only the lower of:
🔹 What they paid, or
🔹 What the property sells for (after deducting fines and costs).
Article 13 – Implementing Rules
🔘 The detailed rules (Regulations) will be issued within 180 days of publication.
🔘 They will cover:
🔹 How non-Saudis can acquire property.
🔹 Rules for non-residents.
🔹 When fees apply or don’t apply.
Article 14 – Old Law Cancelled
🔘 This law replaces the 2000 law on non-Saudi property ownership.
Article 15 – Start Date
🔘 The law takes effect 180 days after it’s published in the official gazette. Saudi Expatriates is now on Telegram
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| Conditions of New Law that Allows Non-Saudis to Own Property in Saudi Arabia |