Saudi Authorities Allow Foreigners to Own Property within Kingdom's Real Estate Market

Saudi Arabia has taken a significant step in attracting foreign investment with the approval of the Real Estate Ownership Law by Non-Saudis. The new law, published in the Official Gazette on 25 July 2025, repeals the previous Non-Saudi Real Estate Ownership and Investment Law.

The new law allows non-Saudis to own real estate or acquire rights in kind within geographic areas specified by the Council of Ministers. These areas include specific economic zones, major cities, and designated urban development areas. For Makkah and Madinah, ownership is permitted under special conditions for Muslim natural persons only, according to specific regulations.

Royal Decree No. (M/14), which approved the law, was dated 19/01/1447 H (corresponding to 19 January 2025). The document will outline the areas in which non-Saudis may own real estate in Saudi Arabia, including maps of specific locations and permitted ownership limits.

Non-Saudi natural persons, non-Saudi companies, diplomatic missions and international organizations, non-Saudi nonprofit entities, Saudi companies with non-Saudi shareholders are eligible to own property under the law. All real estate purchases or rights acquisitions by non-Saudis must be registered with the competent authority and recorded in the Real Estate Registry to be legally effective.

A fee of up to 5% will be imposed on the value of the rights disposed of by non-Saudis. In addition, non-Saudis planning to invest in real estate in Saudi Arabia must consider the applicable real estate transaction tax and corporate income tax, in addition to the transfer fee.

The law maintains essential regulatory safeguards to ensure proper management of the real estate sector. Any property acquired by using false or misleading information may be sold via public auction. A fine may be imposed not exceeding 5% of the value of the right in-kind that is subject to a violation, not exceeding 10 million Saudi Riyals (SAR10m).

The Real Estate General Authority (REGA) will publish the Geographic Scope Document for Real Estate Ownership. It is essential for non-Saudis to stay informed regarding the detailed Implementing Regulations expected to be published within 180 days of the Law's publication in the Official Gazette.

The approval of the law is a significant development in Saudi Arabia's approach to foreign investment in real estate. It is aimed at attracting foreign capital, expanding the real estate market, and spurring urban development.

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Saudi Authorities Allow Foreigners to Own Property within Kingdom's Real Estate Market