Law of Real Estate Ownership by Non-Saudis: foreigners may buy property in designated zones

Encourage foreign direct investment and increase the supply of property by attracting investors and international developers, stimulate residential, commercial, industrial and tourism growth, create jobs for citizens and raise the real estate sector’s contribution to non-oil GDP, while protecting citizens’ interests through mechanisms of market control meant to achieve « real estate balance », in support of the Vision 2030 objectives.[5][6][11]

according to the Minister of Municipalities and Housing (July 2025) and the Real Estate General Authority (January 2026)

• Non-Saudi natural persons, non-Saudi companies, non-Saudi non-profit entities and any other legal person designated by the Council of Ministers may own property or acquire other real rights within geographic zones. On a proposal of REGA’s board approved by the Council of Economic and Development Affairs, the Council of Ministers sets the zones, the types of rights allowed, maximum ownership shares and the maximum length of usufruct rights.[3][11]
• A non-Saudi individual legally resident in the Kingdom may, in addition, own one property for his or her own housing outside the zones, except in the cities of Makkah and Madinah. The spouse and non-Saudi children count as dependants for this home and may only own one separately once the marriage ends or the child turns 25.[3][10]
• In Makkah and Madinah, ownership by non-Saudi individuals is limited to Muslims. Unlisted Saudi companies with foreign shareholders may own property within the zones, including in the two cities; listed companies, investment funds and special purpose entities follow the rules of the Capital Market Authority.[3]
• REGA levies a fee of up to 5% on the value of non-Saudis’ dispositions of real rights, on top of existing taxes and fees. The implementing regulation sets it at 2% in the cities of Riyadh, Makkah and Madinah and the governorate of Jeddah, and at 0% elsewhere and in listed cases (inheritance, court rulings, expropriation, among others).[3][10]
• Ownership is valid only once recorded in the real estate registry; applications go through an electronic portal and all payments must use electronic means. Non-Saudi companies register beforehand with the Ministry of Investment and disclose their direct and indirect owners; non-resident individuals need a digital identity, a bank account and a phone number in the Kingdom.[3][10]
• Breaches are punished by a warning or a fine of up to 5% of the value of the right concerned, capped at 10 million riyals. Knowingly giving false or misleading information to acquire a right exposes the buyer to the same fine and to a court-ordered sale of the right.[3]
• The law replaces the 2000 law on real estate ownership and investment by non-Saudis (Royal Decree No. M/15 of 17/4/1421 AH); real estate rights legally acquired before its entry into force are not affected.[3][1]