SAUDI EXPATRIATES

The announcement was made by Minister of Municipalities and Housing Majed Al-Hogail, who said the updated law will allow foreigners to own residential property in most Saudi cities, with four cities excluded: Makkah, Madinah, Jeddah, and Riyadh. Most Viewed: How to update iqama details in Saudi Arabia through Absher

Under the new rules:

➤ Foreign residents living in Saudi Arabia will be allowed to own one residential property.

➤ This ownership is allowed outside the designated foreign ownership zones, except in Makkah and Madinah, where residential ownership remains restricted to Muslims only.

➤ Non-residents will be allowed to own residential property only in specific areas approved by authorities.

Except for Makkah, Madinah, Jeddah, and Riyadh, residential ownership will be permitted across the Kingdom. However, special zones may be authorized for non-resident ownership in the future.

All Saudi cities have removed their limits on foreign ownership of commercial, industrial, and agricultural properties under the new system. This change aims to increase economic growth, business expansion, and investment from outside sources.

The updated law sets clear limits and controls on foreign real estate ownership. These include:

🔘 Defined geographic areas where foreigners may own property

🔘 Limits on ownership ratios

🔘 Clear legal rights and conditions

Foreigners may only own property or acquire real estate rights in areas approved by the Council of Ministers, based on recommendations from the Real Estate General Authority and approval from the Council of Economic and Development Affairs. Trending: HR ministry approves 30-days paid leave and weekly off to these workers in its new decision

These approvals will also define:

■ The types of real estate rights allowed

■ Maximum ownership limits

■ Any additional conditions

Outside of the specified ownership zones (with the exception of Makkah and Madinah), non-Saudi individuals who lawfully reside in Saudi Arabia will be permitted to own one residential unit.

The new system maintains the current limitation that only Muslims may own property in Makkah and Madinah.

👉Any legally established non-listed Saudi firm with foreign ownership is eligible to own property within the designated ownership zones, which include Makkah and Madinah.

👉 These companies may also own property outside approved zones for business activities or employee housing, as defined by regulations.

🔹 The executive regulations will allow listed companies, investment funds, and special-purpose entities to own property anywhere in Saudi Arabia, including Makkah and Madinah.

🔹 This ownership will be regulated by controls issued by the Capital Market Authority, in coordination with the Real Estate General Authority and other regulators.

The new system confirms that foreign ownership does not provide extra privileges beyond what is stated in the law. It also does not affect rights granted under other systems, such as

✅ The Premium Residency Program

✅ GCC agreements

Property ownership can only be considered legitimate after being registered in the Real Estate Registry, which requires all non-Saudi individuals and businesses to register with the appropriate authorities.

A transaction fee of up to 5% of the property value will apply to foreign-owned properties. Exact details will be set out in the executive regulations. See Also: Penalty for Employers who failed to issue medical insurance to workers

• Violations of the law may result in warnings or financial fines.

• Providing false or misleading information can lead to fines of up to SR10 million.

• In serious cases, courts may order the sale of the property.