Saudi Arabia has announced a transformative real estate law that allows non-Saudis to own property under specific conditions. Approved by the Cabinet in July 2025, the law was recently published in the official gazette Umm Al-Qura and will come into effect by January 2026. This bold move supports the Kingdom’s Vision 2030 goals to attract investment and modernize the property sector.
Who Can Own Property?
The new law permits foreign individuals, companies, and international organizations to acquire real estate in areas designated by the Cabinet. Existing property rights held by non-Saudis remain valid under this regulation.
Types of Ownership Allowed
Foreigners can now enjoy full ownership, usufruct (right to use and benefit from property), or long-term leasehold rights. These property rights open new opportunities for both residents and investors.
Location Guidelines and Exceptions
While ownership in Makkah and Madinah remains restricted, Muslim foreign residents may be allowed to own a single residential property under certain conditions. Outside these cities, non-Saudis can own property in designated zones across the Kingdom.
Corporate Ownership Benefits
The law offers broad ownership rights to licensed investment funds, non-listed companies with foreign shareholders, and special-purpose entities. These companies can purchase property anywhere in the Kingdom—even in Makkah and Madinah—for business or employee housing purposes. Listed firms must follow regulations set by the Saudi Capital Market Authority.
Diplomatic and International Provisions
Diplomatic missions and international organizations can own real estate for official use. This is subject to Foreign Ministry approval and reciprocal agreements.
Registration and Legal Compliance
All foreign buyers must register with the national real estate registry. Ownership becomes valid only after this official registration. This ensures transparency and legal protection for all parties.
Applicable Fees and Penalties
A real estate transfer fee of up to 5% applies to foreign ownership deals. Violations, such as false documentation, can lead to fines up to SAR 10 million. In serious cases, properties may be sold by the state after necessary deductions. A special committee under the Real Estate General Authority will investigate violations, and appeals must be filed within 60 days.
Implementation and Zones
The Council of Ministers will soon release details on permitted ownership zones, limits, and usufruct durations. Executive regulations are expected within six months, clarifying how the law will be applied.
Repeal of Previous Rules
This law replaces the Royal Decree No. M/15 issued in 2000. It also lifts the ban on GCC nationals owning property in Makkah and Madinah. Now, a single unified law governs property ownership for all non-Saudi entities.
Aligning with Vision 2030
This legal update reflects Saudi Arabia’s ongoing commitment to economic reform and diversification. By opening its property market, the Kingdom welcomes investors and supports a thriving real estate sector for years to come.
DISCLAIMER:
The images, videos, and logos featured on this page are the property of their respective owners. This blog post is intended for informational purposes only. We strive to provide proper credit and sources wherever possible. If you are the owner and would like your image, video, or logo removed, please contact us.
Owais Qarni is a Co-Founder, Chief Editor, and Author of Saudi Scoop. He is passionate about tech, cars, and traveling. A Dreamer, Explorer & Optimist!
