Saudi real estate law for non-Saudis
New legislation permits non-Saudis to acquire property across the Kingdom with specific restrictions and regulations
The Kingdom of Saudi Arabia has officially published a groundbreaking law regulating real estate ownership by non-Saudis, signaling a major shift in property rights and investment opportunities in the country. The law was released in the official gazette, Umm Al-Qura, and will take effect 180 days from its publication date.
Approved by the Cabinet earlier this month, the legislation provides a comprehensive framework allowing foreign individuals, companies, and non-profit organizations to own or hold rights in real estate throughout designated areas in Saudi Arabia, subject to strict conditions.
Key provisions of the law include:
- Ownership Rights: Non-Saudis may now legally acquire ownership, usufruct, leaseholds, and other interests in real estate, provided they meet criteria based on location, land classification, and intended use.
- Restricted Areas: Ownership in Makkah and Madinah remains restricted, except in specific cases for individual Muslim owners or qualifying foreign companies for operational purposes.
- Residential Ownership: Legal foreign residents in the Kingdom may own one residential property outside restricted zones for personal use.
- Corporate Ownership: Foreign-invested companies, investment funds, and licensed entities are permitted to own property—including in Makkah and Madinah—if it supports business operations or employee accommodation.
- Public Companies and Funds: Listed firms and regulated investment vehicles may acquire property as per financial market rules.
- Diplomatic and International Use: Embassies and international organizations may acquire premises with Ministry of Foreign Affairs approval and under reciprocal agreements.
All foreign entities must register with the relevant authority before purchasing real estate, and all rights—including ownership and usufruct—must be officially recorded in the national real estate registry.
The law introduces a real estate transfer fee of up to 5% for non-Saudi transactions and enforces penalties of up to SAR 10 million for violations. Severe infractions, such as false disclosures, may lead to property confiscation and sale, with proceeds transferred to the state.
A dedicated committee under the Real Estate General Authority will oversee compliance, with its decisions subject to appeal in administrative courts within 60 days.
Importantly, the new regulation also removes previous restrictions on GCC nationals owning property in Makkah and Madinah, streamlining all foreign ownership under a unified legal structure.
The executive regulations—including geographic designations and detailed procedures—will be released within six months. This law replaces Royal Decree No. M/15 of 2000, modernizing Saudi Arabia’s legal environment for real estate investment.
verified from sources : thegulfobserver.gulfnews
